Confed unites channel against distis

The alleged high-handed behavior of a few national distributors has got
dealers in Tamil Nadu contemplating a ban on these entities. The issue goes back
to two separate instances that took place earlier this year, involving SES,
Redington and Ingram Micro. In both cases, the channel felt that there was a
lack of cooperation from these distis in resolving issues with them. "Many
Confed members, through their own efforts, have stopped dealing with SES with
immediate effect for an indefinite period. We will be taking a decision on
Redington and Ingram Micro soon. In fact, many dealers in Coimbatore and other
nearby regions stopped dealing with SES a long time ago after they saw how
unprofessional a company it was," stated

PN Prasad, President, Confed-ITA.

In the first instance, SES had sent a legal notice to a few channel partners
saying they had unpaid bills. But partners refused to pay up saying that the
bills were forged and it was a case of forgery masterminded by a sales executive
of SES Technologies. "Through an e-mail, we requested SES to drop the case
against all the dealers. But the distributor served legal action against us. If
an association can't take up issues of their members and if they get
blackmailed, then it does not speak much for the industry," stated Prasad.

The other instance involved HP care packs. GV Ramanan, Customer Relationship
Manager, Rams alleged that the products he had bought carried a three-year
warranty, but Ingram and Redington refused to confirm the same. Finally, Rams
filed a legal suit against the two distis. "Ramanan made many attempts to
correspond with Redington, Ingram Micro and HP about the issue but they did not
respond. It was only after he filed a legal suit against the distis that the
three-year warranty was brought back on the products. But now these distis have
banned Rams. This sort of behavior is a threat to all companies. It sends out
the message that we cannot question any rules of distis and vendors. So we are
collecting all documents to take up this case against these distis," exclaimed
Prasad.

Confed has already communicated to a number of channel partners and
associations across the country and received tremendous support from this
community. "We have heard from many associations across India which has been
very encouraging. In fact a few have even suggested that we announce a one-day
ban on Redington and Ingram, and get SES to drop the cases they have filed
against channel partners," commented Prasad.

Expressing the full support of channel partners in Rajasthan, Deepak Sharda,
Secretary, Rajasthan Computer Traders' Association stated, "Definitely we will
support Confed since this is a genuine case. It's one case that has been
highlighted, but there are so many others that impact the general interest of
the channel community that are not being addressed. So this is a good start and
we stand by Confed." A similar instance had taken place in Rajasthan in which
SES had filed a case against a partner.

Sharda shared that they are in regular touch with Confed and were waiting for
communication on what steps to be taken. "Confed will inform us and we will act
accordingly. If they call for a boycott also, we are with them," he added.

In Bengaluru, K Kiran Holla of Hollasons Trading Company expressed, "These
are blackmailing tricks by distis. We should certainly join hands and protest
against it."

Many associations, while encouraging Confed in its endeavors, are also giving
sound advice. "Please go through all paper work and legal responsibilities and
then settle the score. We are with Confed for any sort of support required from
me and our association," stated Rohit Tendon, Secretary, Bareilly Computer
Dealers' Welfare Association.

Naresh Lalwani, President, Computers and Media Dealers Association (CMDA),
Pune commented, "If it is a genuine cause, we will stand by it. We have been
informed of what has happened but we will take a call depending on a number
factors like the details of the case. And if it is in the general interest of
the community, then we will comply with what Confed plans."

Speaking on behalf of SES Technologies, Chaitali, the executive of company's
legal department said, "We will not step back from taking legal action against
those companies and will recover the money." When contacted, PS Neogi,
President-IT Division, Redington said, "Since the partner has sent a legal
notice, we are not in a position to comment."

(With inputs from N Vasudevan in Chennai)