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Durgapur: The emerging 'Pune' of West Bengal

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DQW Bureau
New Update





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lang="en-US">
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size="3"> style="background: rgb(255, 255, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">Just
176km
from the state capital, the IT market in Durgapur is often
compared to Pune due to the development activities taking place in
this area. The area has been one of the industrial hubs of West
Bengal from the early 1960s with steel plants set across an area of
approximately 6.5 sq km. Since then, with its industrial outlook, the
area has attracted leading technical colleges and PSUs.

lang="en-US">
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style="background: rgb(255, 255, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">In
its
early phase of growth in the IT market, the vendors as well as
the channel have been keen in tapping the education vertical in
particular, followed by the enterprise segment. “The student
population account for over 80 percent of the total retail customers.
Owing to large technical colleges present in the area, students from
all across the states come to study here. Hence, they feature high on
top of the retail buying stable,” said Ujjwal Das, Proprietor, Ulex
Computers.

lang="en-IN">
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style="font-size: 11pt;" size="2"> size="3"> style="background: rgb(255, 255, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">However,
Durgapur
is no longer just a base for giant steel plants and
education, this region is also becoming a hub for corporate houses.
In the last three years, major telecom, IT and manufacturing giants
have opened up offices in the region. e-Governance projects and
WBSWAN have also contributed significantly to the growth of IT.
Besides this, there are new projects on the horizon, which are
sanctioned by the
face="Times New Roman, serif"> style="background: rgb(255, 255, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">Panchayat
face="Times New Roman, serif"> style="background: rgb(255, 255, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">
and BDO.
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lang="en-IN">
style="font-size: 11pt;" size="2"> size="3"> style="background: rgb(255, 255, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">Unlike
other
regions, the channel players in Durgapur are able to bid in the
tenders issued at the block level and supply the stocks at the
borough and district level. However, many channel partners in the
area are not happy with the government initiatives.
face="Times New Roman, serif"> style="background: rgb(255, 255, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">“Although
we
are able to participate in the tenders, we are hardly able to bag
them as the criteria laid down in these tenders are too stringent and
tight for channel. However, in small projects, we do have our own
share,” Das added
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lang="en-US">
style="background: rgb(255, 255, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">Also,
a
major IT Park is coming up in the area with India's leading large
scale solution providers opting to set up offices in the vicinity as
a move to diversify their operations. Around 25 acres of land has
been sanctioned for the construction of Shapoorji Paloonji IT Park.
However, the channel is not reaping any benefit directly from the
project. It was the same case with the other PSU expansions way back
in early 2000.
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lang="en-US">
style="background: rgb(255, 255, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">Like
most
of upcountry markets in the eastern vicinity, Durgapur is
plagued with problems related to post-sales services. Since many
leading vendors do not have service stations here, there is an
ongoing service-related issue. Often, the service is routed to
Kolkata or other cities, where the turn-around-time is high.

lang="en-US">
style="background: rgb(255, 255, 255) none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">However,
that
what is seriously plaguing the market is partners who partake in
over-trading. Sandeep Khedia of Matrix said, “Some partners in the
area are trading beyond their potential. This results in credit
problems, fluctuation of MoP and cheque bounces. However, the market
scenario is much better compared to other cities in the locality.”

lang="en-US">
Durgapur
is
still one of the brightest markets in the state of West Bengal.
The city carries a legacy of industrialization and is rapidly
becoming a corporate and IT hub. The city has registered a 25 percent
YoY growth over the past four years. “The consumer here is more
educated than most class-C cities. With higher literacy level across
Durgapur, the city is on a prosperous mode. This year too, I expect
the market will grow at 25 percent,” Khedia concluded.

lang="en-US">
The
dealers
in the area are now hoping to form an association-Durgapur
Computer Dealers' Welfare Association (DCDWA). Although the
association is in a nascent stage, a leading channel partner in
Durgapur said, “The association is at an immature stage. Infighting
is common and this is decreasing dealer solidarity in the area. It
will take some time for the association to prosper.”

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style="font-weight: bold;">An Overview

lang="en-IN">
style="font-size: 11pt;" size="2"> size="3">Market
name:
size="3">
Durgapur

Market
location:
size="3">South
Bengal

Size
of market:
size="3">
Rs 45 lakh every month

Surrounding
markets:
size="3">Burdwan,
Asansol, Bolpur, Panagarh, Bishnupur

Number
of dealers:
face="Times New Roman, serif">74

Prominent
dealers:
size="3">Ulex
Computers, IT Bazar, Matrix, Pinnacle Infotech

National
distributor:
face="Times New Roman, serif">Rashi
Peripherals

Association:
size="3">Durgapur
Computer Dealers Welfare Association (DCDWA)

Business
verticals:
size="3">
Education, PSU, steel industry, government and SMB


Business
trend:
size="3">
size="3">The
education segment accounts for 90 percent of the total channel
business in the area. With the emerging corporate houses and an IT
Park under process, the market is expected to grow at the fastest
pace compared to others in Bengal.


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