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At a standstill

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DQW Bureau
New Update



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Siliguri has become one of the most prominent markets in eastern India,
thanks to its geographic location. The city is situated on one of the oldest
trade routes in India, linking the entire north-east region with the rest of
India. It is due to its positioning that the market has gained momentum
primarily in the government sector.

“In Sikkim, the government caters to most of our business. Supplies for the
Sikkim government are also purchased in Siliguri and therefore, it has become a
crucial market for the city too. Retail also comprises of a major segment in the
city. However, government and PSUs are our major customers,” said Gagan Joshi,
Director, Landmark Office Systems.

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Besides catering to the local markets in North Bengal and Sikkim, the city
also caters to international markets in South Nepal and Bhutan. In recent times,
Darjeeling entered into a phase of standstill after the recent Gorkhaland
agitation. Business was severely affected in Siliguri due to the
non-availability of supplies in the hills, because of the blockage of the road
to Assam.

There are several major national distributors in the area. While Rashi and
Compuage have warehouses based in Siliguri; Ingram, Redington and others have a
crucial supply chain management in the area.

Gagan Joshi,
Director, Landmark Office Systems
How has been the market since last
year?


Siliguri has seen a considerable growth since the inception of the IT market
here. However, owing primarily to the global slowdown, there hasn't been any
significant growth this FY.

What are the major verticals in the market?

Government purchases in Sikkim account for majority of the sales. Also, the
PSU segment is strong, while eduction and retail have performed well in the
IT purchases space.

What are the emerging market verticals?

Tourism and real estate are coming up heavily in the area. With the
development of tourism across India, Siliguri, being the central point of
contact for the north-east and rest of India, is reaping the benefits of the
booming private tourism sector. Along with tourism, real estate in terms of
star hotels and resorts too are emerging as an ancillary industry to
tourism.

What are your market predictions for this FY?

I think the Siliguri market this year will grow at 10 percent on an average,
However, a lot depends on PSUs and government purchases. If e-gov projects
keep on flourishing, the market may boom to a 25 percent growth YoY.

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“Owing to the recent slowdown and a standstill in e-government projects,
there has not been a considerable growth in the market last year. However, I am
optimistic about the market picking up this year,” Joshi added.

Reinforcing Gangtok's dependency on Siliguri, (Gangtok-based) Sandip Maiya of
Digital Equipment and Communication said, “The IT market here is mainly
dependent on Siliguri. The state government accounts for the majority of the
business and supplying goods to the government is increasingly becoming
lucrative,”

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Market Name: Siliguri

Location: North Bengal

Surrounding markets:
Darjeeling, Kalimpong, Gangtok, Cooch Bihar, Malda,
Aliporeduar

Number of dealers: 112

Market Size:
Rs 4.5 crore per month

Prominent dealers:
Logic Fusion, Universal Computers, Computer Land,
Landmark, Placewell

Distributors: Ingram Micro, Redington, Rashi Peripherals, SES
Technologies, Compuage

Associations: NITTO, ITDAS

Business verticals: Retail, government, education, PSU

Business trend: Due to its positioning, the market lies in the middle
of a major distribution center catering to south Nepal and Bhutan, Sikkim,
North Bengal and north-east India.

Recently, the market has been plagued by a rivalry between the two warring
associations and also a partial ban on Rashi Peripherals. In a recent
development, however, signaling an end to the long-drawn conflict between IT
Dealers Association of Siliguri (ITDAS) and IT Forum, the latter has been
dissolved, paving the way for (North-Bengal IT Traders Organization) NITTO to
emerge with a vision of uniting dealers across North Bengal, the Hill Council
and Sikkim at a later stage.

“The primary aim of NITTO is to provide a larger platform for dealers across
north Bengal. In our endeavor to incorporate dealers across the region, we have
evolved NITTO with a maxim of uniting the channel space in the region,” said
Gautam Agarwal of Computer Land.

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