One of the largest cities in central India, Indore, is the commercial capital of Madhya Pradesh. Indore is also the financial center of the state, and is the only city in India that houses the two top premier institutes of the nation. The city has got an Indian Institute of Management (IIM) and an Indian Institute of Technology (IIT). The leading technology service provider Devi Ahilya Center for Computer and Information Technology (DACCIT) catering IT solutions for multinational companies is also situated in the city. Hence the city is commonly referred as the education hub of central India.
Most of the big IT companies such as TCS and Infosys are investing in Indore. Some of the major IT companies present in Indore are IBM, Computer Sciences Corporation, Impetus, etc. The Crystal IT Park of Indore is also going to get operational in the coming months which will house many local and national IT companies.
Although, the IT scenario of Indore looks quite promising from the outside, deep inside it has been telling a different story. According to the partners of the city, Indore IT market is going through a tough time incurring huge business loses. According to Vivek Beriwala, director, Abacus Combines, the market has been on a slump for the last few months. Beriwala said, "The market has gone down by 30-40% in the past 2 months. Consumers are not actively buying these days." Ravi Nandi, director, Business Automation said in concurrence, "The market is currently down in the region. Peripheral prices have gone up and consumer buying behavior is going through a drastic change. Also, the LFRs are eating partners' share in the market. They stock up the products. However, people should understand the value of service."
Talking about the primary growth verticals in the city, partners claimed that most of the sectors equally contribute to the city's economy. However, retail, government and SMB segments deserve a special mention. According to Nandi, HP, Acer, Apple and Sony sell like 'hot-cakes' in the city, while every product sells well in the market. Manish Goyal of Byte Peripheral Systems said, "Laptop sells the most in the region. Among the brands, Dell, Lenovo and Sony enjoy a massive pull." Talking about the vendor-dealer relationship, Goyal cited that he shares a healthy relation with his vendors. While Nandi said, "My relations are mostly fine with my vendors. However some universal problems are there, like warranty and replacement issues."
The only IT association in Indore, Madhya Pradesh Computer Traders Association (MPCTA) is functioning well in the city. Beriwala said, "The association is quite active in the region and functions well." Nandi said, "MPCTA is quite active. It regularly conducts fellowship meets, exhibitions and all. The association got established in 1994 and since then it has been actively resolving the issues of the dealers. The members also organize an outing every year. Last year they went to Thailand and this year they are planning to go to Dubai."
Talking about the future, Goyal said, "I expect the market to revive in the future." Sharing similar sentiments, Nandi said, "The market should be better in the coming days and should get over the recent crisis, viz the Japan crisis, Thailand crisis and dollar crisis."
Well, the Indore IT market has got a lot of potential. It can be expected that Indore will see a big IT boom in the near future.
Interview: Manish Goyal of Byte Peripheral Systems
How has the market been in the last 2 months?
The market has gone down by 40-50%.
What are the top-selling brands in the city?
Dell, Lenovo and Sony.
What are your market predictions for this year?
The market should recover in the coming days. I expect a better future.