Sony starts direct billing to Eastern Logica

Starting off with direct billing to selected channel partners thereby eliminating the role of distributors in the logistics chain, Sony India has appointed Eastern Logica Infoway as its first IT Multi Brand Counter (ITMBC).

In the normal supply mechanism, the vendor only supplied directly to the chain of exclusive Sony outlets (Sony World) across the nation and did not have a direct billing facility for the tier-2 partners. However, the move came in as a strategic development for the company looking forward to garner more market share with the VAIO range.

"Eastern Logica Infoway was the first to be appointed as ITMBC from Sony. Under the new terms, Sony will be billing directly to Eastern Logica Infoway and we will do only direct retailing," said Sundeep Mishra of Eastern Logica Infoway.

According to Eastern Logica Infoway, the move came in as recognition for its performance whereby ELIL at least bills 200 VAIOs every month in the retailing segment registering a minimum turnover of Rs 35 lakh for Sony only on a m-o-m basis.

However, under the new terms between Sony and Eastern Logica Infoway, the deal has been only for the VAIO range, but Eastern Logica Infoway is also open to the digital media division of Sony for the direct billing contract. Also, as a relief for its channel partners, Sony will be taking care of the logistics and supply chain until it reaches its ITMBC partners.

"Retail is a priority for us following the distribution business and this deal will surely help us in our retail focus," said Gaurav Goel, MD, Eastern Logica Infoway.

This financial year, Eastern Logica Infoway did a gross business of Rs 202 crore from which at least Rs 62 crore accounted for its retail ventures.

Post this deal, the revenue contribution for retail is expected to rise up to 35% of this year's gross topline target.

Technocrat Infotech is the second company to be appointed as ITMBC from Sony in the east after Eastern Logica Infoway.