IT sales in Orissa dip

DQW Bureau
30 Jun 2009

While Orissa and parts of eastern India gear up to celebrate Rath Yatra, an
important festival in Orissa, the scene is not all that bright in IT sales in
Orissa this year.

“During festive seasons, generally the market here is swamped with numerous
offers particularly on laptops and desktops. This time however, it seems that
while we have overcome the worst of the slowdown, we are yet to see good market
growth,” said Bhubaneswar-based Subash Das of Info World.

Like the previous year, computer accessories like speakers, headphones, USB
storage devices, mouse, printers, UPS and other components constitute the bulk
of the offers during the season. Offers from desktop and laptop vendors like HP,
Compaq and Lenovo also flood the market.

Rath Yatra, puri
Despite the festive season, the summer heat, pending college
result and Maoist

attacks have dampened sales in the region

With most of the trade happening during June-August, and the state boasting
of technical colleges, Orissa is reeling under a major drop in sales.

Speaking about the scenario, BK Mishra of Bhubaneswar-based Targus Technology
said, “Though the ill-effects of the slowdown are declining, yet there are
primarily two factors which have affected sales this time. In the first place,
college results are not yet out and so the students are not making any purchases
at present. The other reason is that this year Orissa has registered a record
summer with the mercury soaring to over 45 degrees centigrade. Owing to the
heat, most of the end customers are staying at home, hence sales has been direly

Supporting the statement, GB Gupta of Bhubaneswar-based Tri Star Software
said, “College admissions take place during June-August and this is the time
when the bulk sales in hardware happens. On the software front, the state is
stagnant. There has not been any increase or considerable decrease in software
sales recently.”

However, the market pattern in Orissa is changing fast. Most of the outlets
and channel partners are now concentrating more on retail sales rather than
channel business.

“The profit margin is higher in direct retail sales rather than through
channel partners. The bill clearance is fast in retail and also the cash flow is
higher. Now, across Orissa, nearly all channel partners are preferring direct
retail sales rather than channel dealings,” Prasant Kumar Swain of Bhubaneswar-based
Nigama Computech & Services emphasized.

Discussing the tense situation in Sambalpur, Mishra added, “The Maoists are
very active in Rourkela, Sundergarh and Sambalpur districts. The last I heard,
business in Sambalpur has been direly affected by the Naxalite violence.
However, there has not been any effect on trading this time in Backbencher.”

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