Hail the NDs

DQW Bureau
New Update



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vendors and partners routinely lambast the national distributors for

most of the problems that affect them; while that might be true in

many cases, the fact of the matter is that these NDs are doing many

good things too. Especially, in terms of using new-age technologies

to improve their business performances.
color="#000000"> face="Times New Roman, serif"> style="font-style: normal;">These

biggies might have suffered in growing top line or are often being

squeezed on margins, but they still play their roles in enhancing the

country's overall distribution dynamics.


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website for resellers had been a resounding success in improving

transparency and reducing costs of doing both stock sales and

run-rate business. Ingram took a lead on this in the Indian market

and in FY10 30 percent of its business happened through this website.

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was a consolidation of the sales organization with an order

processing back office in Chennai making the team structure more

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style="text-decoration: none;"> size="3"> style="font-weight: normal;">Redington,

on the other hand, has focused on improving distribution process

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Automated Distribution Center (ADC) in Chennai went live and became

fully operational; coupled with its state-of-the-art warehouse

management system this significantly enhanced Redington's

distribution process. There are plans to have these ADCs now in four

metros for which Redington invested about Rs 150 crores. It now plans

to complete the land purchase for the Mumbai ADC by year end and then

commence construction of Kolkata and Delhi ADCs soon sequentially.


good measure done by these big NDs is to get into more niche

products. That might have been done out of necessity-established

volume products no more giving the margins have sort of forced the

hands of these biggies to foray into niche value products. For

Ingram, t
color="#000000"> face="Times New Roman, serif"> style="font-style: normal;">here

was increasing focus on high value low volume businesses like Adobe,

Autodesk, IBM software, Oracle, Fortinet, Juniper, Symantec, McAfee

and Trend Micro that offered high margins. But it was newer areas

like AIDC, PoS and surveillance that showed great promise with Ingram

signing up a number of niche vendors.
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was Redington's diversification into the non-IT business few years

back that has paid off handsomely for it, with the non-IT business

accountingfor 12 percent of its revenues in FY10-a 100 percent

growth since FY09.
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Telecom business was the key with the exclusive relationship with

Blackberry retail (especially in the unlocked space) witnessing good

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good measure has been the increasing penetration of NDs into the

smaller towns and cities. Small towns though were not on the agenda

of companies a few years back but with the passé of time they


assumed enough importance for each company to sit up and take note of

its existence. The channels that added tier-2 and tier-3 markets

helped distributors who played their cards well to stay ahead. For

deeper penetration into the C, D, E class channels vote for a

requirement of good strength.


the importance of these small towns that are growing at 60 percent,

Rashi decided to increase it focus on these towns which collectively

contributes 40 percent to its revenues. Small towns that were not on

the agenda of national distributors a few years back came into focus

in FY10. In FY09, Iris restructured its regional focus by declaring

Delhi NCR as N1 and North India as N2 regions. This enabled the

company in FY10 to penetrate smaller towns like Ludhiana, Chandigarh,

Shimla, Ambala, Jammu better; this reflected in the 25 percent

growth. Realizing the importance of these small towns where markets

were growing faster, Rashi decided to increase its focus there and it

collectively contributed 40 percent to its revenues.