National distributors continue to ban Life Computers

Varansai based Life Computers which have been banned by all the major national distributors, owing to its payment default issue for last 1 year, intends to come back to the distribution business and is seeking support from its NDs to resolve all the pending issues and allow the company to restart business again.

Life computers, one of the oldest and strongest sub distributors, lost its sheen when 19 national distributors collectively decided to ban the company and stop doing any transaction on credit. For the last 1 year, this contentious company has gone through rough time due to this imposed ban.

Speaking to The DQ Week, Udit Vasudeva, director, Life Computers said, "It was tough time for our company as we were trapped in the vicious cycle of credit payment. Our money was choked in our channel, due to that we could not pay back our NDs, and the delay went out of gear. While taking a caution action, all the NDs stopped dealing with our company in Varanasi. Having said that, we are still operating in the market and paying back to the companies as and when we get realization of our money from the channel. Last year our outstanding against NDs were Rs 13.5 crore, which we have bought down to Rs 1.5 crore."

Meanwhile, the company has diversified its operation into retail, and opened two new firms-Bright Technologies and Om Sai Computers, whereas Life Computers has been also transferred into a retail store.

Currently, the company is getting the materiel from outside Varanasi as none of the NDs have opened their books with the company. Nevertheless, the company's priority is to clear the outstanding and getting choked money back from the market. If all goes well, it will restart distribution business during this Diwali.

Vasudeva also said, "We are eager to restart our relationship with the NDs, and want that they should give us last a chance to prove our creditability. Moreover, we are ready to do business as per legal agreement."