Bareilly: Communal tension hits IT biz

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Bareilly, one of the prominent cities
of north India, has a price-sensitive market for IT products and
peripherals, due to its proximity to the national capital, New Delhi.
With the presence of around 70 channel partners and resellers, the
city's IT market has an annual turnover of more than Rs 60 crore.
Though almost all product vendors are doing well in the market,
HP/Compaq are on the top. Ingram and Redington are the two active
distributors of the Bareilly region. Unfortunately, the city is
neither an industrial area nor a corporate hub, therefore dealers
usually have a hard time in availing large business opportunities.

With more than 15 colleges and
institutions for higher education and management studies, the
education sector is the fastest growing segment in the market.
Laptops, notebooks and solution software are the most sought-after
products in the city. "Nearly 25 percent of the dealers are
doing well in the services market. Our association always tries to
bring the best IT vendor along with its services and support, either
directly or through partners," said Gautam Saxena, CEO, Digital
Computers and President of the Bareilly Computer Dealer Welfare
Association (BCDWA). The vendors sponsor various meetings and
programs in addition to local activities in the Bareilly market that
are helpful in providing necessary information about various products
and services.

“The most challenging task of today
is to bring awareness about latest technologies among people and this
can be carried out successfully with the help of national and
multinational IT product vendors,” said Saxena. The BCDWA offers
educational and awareness programs related to warranty issues,
technological updates and buying tips. Raking under the recent
communal turmoil, the small resellers and dealers of the city are
adversely affected. “Attractive schemes for end-users will bring
about an ascent in the market graph,” added Saxena. The dealers and
resellers under the BCDWA protested against the recent state
government's VAT proposal along with other traders that forced
government to take necessary corrective measures. The association is
also optimistic to organize an IT fair in Bareilly with a focus to
attract small dealers and resellers from the adjoining areas as well
as to bring about a wave of awareness and exposure to its members.

Interview

Gautam Saxena, CEO of Digital
Computers and President, BCDWA

What is the size of the IT market in
Bareilly? What are the emerging sectors?

The Bareilly market earns a revenue
close to Rs 60 crore on annual basis. The emerging verticals in the
city include educational institutions and the government sector.

What are the key challenges in the
market, today?

Being located at a close distance from
Delhi, the big price difference is always a challenge to the Bareilly
market.

How many dealers operate in the
market?

There are 70 dealers and resellers, who
operate in the Bareilly market currently.

An Overview

Location: North-East of Uttar
Pradesh

Business verticals:
Education and government

Popular brands: HP, Compaq and
Acer

Distributors: Ingram and
Redington

Number of partners: 70

Annual Turnover: Rs 60 crore

Association: Bareilly Computer
Dealer Welfare Association (BCDWA)