Mounting losses lead the Mumbai-based ND to shut shop
Established in 1991, Neoteric infomatique, one of the country’s premier national value-added distributors, has recently decided to close down their all IT distribution operations in the Indian market. The IT ND who has been covering 50+ cities in India closed their all 35 branches across the country.
This Mumbai based IT distribution giant had revenues of close to Rs.2000 crore in FY15 and employed around 800 people. The services of the entire workforce were terminated as of June 30. Paras Harshad Shah, CEO, Neoteric Informatique who started as an IT dealer, has been working with 42 major brands including the likes of Lenovo, Gigabyte and D-Link.
Despite attempts to contact Neoteric officials, there were officially no comments from the company till the time of going to press. As per market sources, Neoteric has outstanding debt amounts of Rs. 200 crore with various vendors. Due to huge margin losses in recent quarters, the company has decided to close their all businesses from the Indian market. Some ill-fated acquisitions in the recent past and juggling of business streams might also have contributed to Neoteric’s demise.