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Follow UsRegistering a positive growth ratio, Burdwan is leading the IT channel pack from
the East
Located 120 km from the state capital, the IT market of Burdwan has grown
from being one of the humblest markets in the East to a large-scale
distribution hub for the South Bengal region.
With 23 registered dealers present in the location, the city boasts of a
steady growth even during the slowdown. The area lays in the backdrop of an
agrarian economy, with a major industrial township, Durgapur in close proximity.
The development projects over the years in Durgapur have fostered development of
Burdwan.
As Durgapur accounts for a major market in the area owing primarily to the
education, government and enterprise verticals, supplies to the region are
directed from Burdwan because of the proximity.
| Market name: Burdwan Location: South Bengal Surrounding markets: Durgapur, Purulia, Memari, Asansol Number of dealers: 23 Size of the market: 1.1 crore per month Prominent dealers: Expert Systems, Expert Infocom, Ulex Computer, Dynamic Computers National distributor: Ingram Micro Association: Computer Association of Burdwan (CAB) Business vertical: SOHO, education, government Business Trend: Considered as the distribution point of South Bengal catering to nine districts, Burdwan is a major market that distributors and vendors are trying to focus on. With SOHO accounting for the majority of the consumer vertical, the region is, however, plagued by the absence of major government projects |
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“There has been 20 percent growth on an MoM basis in the area over the years.
Primarily, the SOHO segment accounts for the majority of the trade with
distribution coming in at the second place. However, there has been little
effort from the government to give the markets a boost here. WBSWAN projects are
all centralized and order purchases are from the city itself,” complained Samik
Neogi of Expert Infocom.
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True to the allegations, the state government although accounting for the
second major consumer vertical, takes little interest in the region with its
centralized buying pattern and development projects for South Bengal.
| Tapas Sarkar, Proprietor, Expert Systems |
| What are the major issues you face in the region? As such there are no complaints regarding the business scenario in the area. The only problem that we face is lack of proper service centers. Because of this, at times, it becomes quite difficult to deal with consumer complaints. In every case, we have to send the product to Kolkata and it takes a lot of time to resolve this issue besides the regular lack of improper support. What are the major consumer verticals in the area? |
“Only a few projects in Sarva Siksha Abhijan from the central government and
some BDO and Panchayat projects are left over for us,” added Neogi. Sharing a
similar point of view, Tapas Sarkar of Expert Systems said, “The government
sector accounts for about six percent of the monthly business. With government
purchases getting centralized and city-based, there is little scope for us to
participate in the tenders.”
Even though the region seems to be witnessing staggering growth percentages,
in fact higher than the state capital, political turmoil has always been a
burning issue here.
One of the dealers, on condition of anonymity, said, “South Bengal has always
been plagued by political problems, which have pulled down the growth
percentage. Credit clearances are often delayed and every time there is an
election and a fresh panchayat is elected, the credit cycle drags on in a
vicious cycle. Coupled with the political problem, there are security issues
here too.”
With the Maoist threat gaining momentum across the East with strong bases in
Bengal, Burdwan has much to worry about. Some of the dealers complained that
rampant strikes and bandhs are bringing down the business tempo in the region.
After a quick evolution of the consumer segment, the region is in a state of
thaw as nearly 70 percent of monthly sales accounts for end-user purchases only.
Besides the list of political turmoil plaguing the entire state, the real
problem that is lying unresolved in the area is the lack of service centers.
Dealers complained that vendors do not have customer support bases in the area
and it takes a lot of time to resolve customer complaints as all issues are
handled in Kolkata. Also, issues related to pre-installation support remain a
pertinent problem.
However, facing all issues Burdwan is a market to watch for. Every month,
nearly 750-800 boxes are sold and dealers are optimist about the number to touch
1,000 by Q1 of FY 10-11.
Besides the expected growth scenario in the region, Purulia has an active IT
association, CAB.