TN dealers unite to form a company

Dealers in Tamil Nadu are set to make history by rolling out a public limited
company. The company, titled COM-COM Public Ltd will start its operations by
distributing exclusive products and is expecting investments from across the
country so that the operations would be on a pan-India basis. Around 400 dealers
across the state are said to have already shown interest in investing in the
initiative and will hold stakes in the company. However, company sources didn't
reveal the investment, as it has not yet been fixed.

The procedure for getting the company registered is in progress and it
wouldn't be surprising if the company is launched by the end of April. Speaking
exclusively to The DQ Week PN Prasad, CEO, Microplus Computers who is driving
the setup of the company said, “The whole idea of launching this company is to
take various IT products and services to all the places with huge visibility, as
dealers have a vast presence in every corner of the country, and they need not
depend on anyone for service and support.”

To start with the company proposes to distribute products of ELCOT, who
recently showed interest in working with the channel as they aim to increase PC
penetration by supplying one lakh multinational desktops and laptops to
educational institution and the student community. Claiming that the process in
its initial stages, Prasad said, “We are looking at taking this forward legally
and working with ELCOT and other vendors to take IT to new heights. We have the
capacity to take forward the project easily with our strong and vast presence
and can extend service support to the costumers in a more enhanced manner.”

Subsequent to the distribution activities, COM-COM Public Ltd has proposed to
set-up multi-location service centers for major vendors and centers for training
the dealers in major cities and upcountry locations. The company has also
planned to undertake AMCs of multi-location companies such as banks, Prasad
informed. As a policy the company will not deal with multi-distribution products
and would only undertake exclusive and good products, he claimed. He also said
that initially COM-COM would not enter the retail format. The company has also
proposed to go for an IPO and appoint executive members post the launch.

It may be noted that the new company has no relation with Confed-ITA, the
common body working for the welfare of IT associations across Tamil Nadu,
despite Prasad being the VP of the association. A company source clarified that
it was a collective decision and had no bearing with Confed.