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Potential embedded

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DQW Bureau
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Agra, home to one of the seven Wonders of the World, Taj Mahal, is a
sprawling IT market in the state of Uttar Pradesh. Channel in Agra boasts of the
presence of a range of customers that buy low-cost to high-end products.

Despite the slowdown in the past few months, the IT market of Agra has not
been progressing at a steady pace. It has maintained its moderate sales record
and the partners are hoping that the festival season will further boost the
market. According to the partners' feedback in Agra, the months of June and July
had recorded a better performance, but August has not been great because buyers
in the education sector have yet not started their annual purchases.

“There are various engineering colleges in and around Agra and every year
they buy laptops and other IT products that drive our business in the month of
August. This year, the education segment has not yet started purchasing laptops,
and this is affecting our business. We are hoping that with the Diwali season
being round the corner, students might come to the market looking for discounts
and during that time our sales will boom,” shared Jitesh Aggarwal from MKG
Computers.

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Jitesh Aggarwal, Director, MKG Computers

What are the major challenges in the Agra market?

The one major problem that Agra is facing is regarding the entry tax.
The IT industry, along with others, has been seeking clarification on entry
tax. Entry tax of two percent has been inconveniencing all the sectors,
including IT. We would like this issue to be resolved immediately.

What
is the potential of Agra IT market?

Agra has an interesting market. Here, one can find all sets of
customers. Starting from those who buy a laptop worth Rs 25, 000 to those
who will pay Rs 3 lakh for a laptop. This is great for partners, who can
sell almost anything in Agra.

How do you see the IT associations in Agra playing a role in the
progress of the market?

There are two associations in Agra but I feel that they need to be more
active in order to make a difference in the IT market. We would like them to
involve everyone so that we can show unity to solve problems, like the entry
tax issue.

Though end-users and SOHO segment comprise main buyers in the Agra IT market,
corporate sector has also started showing positive signs of emerging as a
potential buyer.

Atul Singhal from AS Computer Services mentioned, “Though Agra is a market
that is dominated by foreign tourists, it does not contribute much to the IT
sector. The IT market is largely driven by students who come from nearby places
to study at engineering institutes. Therefore, channel partners also have to
keep an inventory that suits their requirement and budget.”

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Though the IT market of Agra is considered to be small, it has around 80
channel partners among whom around 50 are strong players. This fact indicates
that the market has potential buyers and the customers have the ability to spend
on IT requirements. Agra also has two associations-IT Club of Agra and Agra
Computers Traders Association.

 Market name: Agra

Market location:
Uttar Pradesh

Market size: Rs 10 lakh per month

Surrounding markets: Aligarh, Mathura

Prominent dealers: MKG Computers, AS Computer Services, Simco
Computer Systems, Expert Solutions, City Computers

National distributors: Redington, Compuage, SES

Associations: IT Club of Agra and Agra Computers Traders
Association

Business verticals: SOHO, education, corporate

Business trends: There are various engineering colleges around
Agra and every year they buy laptops and other IT products that drive the
business in the month of August, when the curriculum begins

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“Agra is a place where one can find all types of customers - those who can
buy laptops worth Rs 25,000 each to those who can afford prices like Rs 3 lakh
for a laptop. This is an advanta-geous fact for partners in Agra who can sell
variety of products and earn profit,” shared Aggarwal.

For a long time, Uttar Pradesh has been facing the issue of differences in
the sales tax structure. The implementation of two percent of entry tax has
inconvenienced all industries and the IT market in Agra had not been exempt from
it.

Over time, partners in Agra have enhanced their retail stores to change their
marketing style. However, with economic slowdown continuing, no new retail
investment has taken place. Partners are just reserving their energies to steady
flow of business, given the current market scenario.

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Parminder Vasu from City Computers added, “Though a small place, major
distributors are present in Agra, which makes the distribution process easy and
with more number of corporate houses taking interest in the town, the situation
will improve in the coming time.”

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