Belgaum: IT's Sweet Tooth

The fourth largest city in the state of Karnataka, Belgaum is nestled in the foothills of the Western Ghats. The city borders the states of Maharashtra and Goa and enjoys a cool and healthy climate. It is surrounded by natural beauties in the form of rivers, hills and dense evergreen forests, and is an emerging tourist destination. The city is also popularly called 'Kundha Nagari' because of its famous sweet dish Kundha. The huge sugarcane cultivation and production, also serves as a reason for naming Belgaum the 'Sugar City' and the district as 'Sakkare Jille' (Sugar District).

Belgaum stands second to Bengaluru in terms of overall exports in the state. The city is also the commercial hub of north Karnataka and a major producer of milk in the state. Belgaum is also a strong industrial hub for machine shops and the geographical location of the city serves as an advantage for it. As far as the IT business of the city is concerned, the information technology market is slowly evolving and making its presence felt in the region. Out of all the business verticals in the city, SOHO and corporate are the prime contributors to the city's economy; while brands such as Dell, Lenovo and HP are among the most popular brands in this region. According to Gururaj R Kalghatgi, CEO, Compu Aid, "Laptops are the top selling products in the city and Dell, Lenovo and HP the the top selling brands. However, out of these brands, the sale of HP laptops has gone down significantly in the city." While talking about relationship with vendors, Kalghatgi said, "I do not face any major problems with my vendors. We share a healthy working relationship."

There is no IT association in Belgaum at present. Once highly active, the Belgaum Information Technology Association (BITA) in course of time has lost its active edge. The association closed down mainly because of internal competition among dealers, and the economic recession also gave it a setback. Churning a monthly revenue of around Rs 5-6 crore, the Belgaum market is well-placed to vie for the tag of an established IT destination in India in the coming times.

Interview: Gururaj R Kalghatgi, CEO, Compu Aid

How has been the market in the last 2 months?

There was a slowdown in the market in the recent past. But the market has picked up now. Schools have reopened and the corporates have started buying again. Also, the SOHO segment is slowly gaining momentum.

How many dealers operate in the city?

There are about 100-150 dealers in the city. However active dealer's count will not be more than 10-12.

Do you have any computer association in Belgaum?

We do not have any association at present. Earlier we had Belgaum Information Technology Association (BITA) operating in the city but it is no more functional.

What are your market predictions for this year?

I predict the market to grow by 20-30%. The future looks promising.