Distributors: Moving towards Broadband, Cloud and Mobility

The growth of India’s Top 10 distributors has been varying from -8 per cent to 26 per cent in FY 2015-16, thanks to 7–8-per cent growth in the Indian IT products distribution sector. The market has reached a saturation point in the urban market and is shifting towards the rural market. Even in cities, the shift is towards B-, C- and D-class cities.

With the 4G revolution driving the Indian market in 2016, we can expect good growth both in rural and urban markets on mobile, cloud and broadband distribution in the country. Ingram Micro leads the Top 10 Distributors Club with 6-per cent growth, with robust sales in advanced solutions, partially offset by a decline in demand for PCs, tablets and smartphones toward the end of the year. It is very difficult to give its revenue breakup in India, whereas globally Ingram Micro’s revenue breakup is IT peripherals (30%–40%), systems (30%–35%), software (10%–15%), networking(15%–20%) and mobility (0%–17%).

The company focusses on cutting-edge products and solutions in cloud, mobility, enterprise computing, data center, networking, automatic identification and data capture (AIDC), point-of-sale (PoS), and consumer electronics. In FY 2015–16, Ingram Micro announced the availability of the Ingram Micro Cloud Marketplace in India with nearly 200 channel partners already registered and ready to transact on the automated platform. This is the first of its kind by any distributor in the country. Through its automated platform, the Cloud Marketplace delivers streamlined customer management of the complete cloud subscription lifecycle. The program has been designed to strengthen customer relationships and expand cloud sales by allowing channel partners to provision, bundle, invoice, manage and support Microsoft cloud offerings, including Microsoft Office 365, Windows Intune, Enterprise Mobility Suite, Azure, and CRM online subscriptions with greater ease and efficiency. Redington provides end-to-end supply chain solutions for all categories of IT products (PCs, PC building blocks, networking, software and enterprise solution products) and consumer and lifestyle products (telecom, digital lifestyle entertainment and digital printing machines) to over 100 international brands. In FY 2015-16, the company tied up with Xiaomi, a leading smartphone vendor for distribution of smartphones in a number of cities across India. Redington is a broad-line distributor in India covering both volume and value distribution in IT as well as mobility space. The most significant development for Redington was the setting up of Cloud Practice by developing Digital Transaction Portal, putting in place the cloud leadership team, entering into partnerships with key vendors in the cloud space and starting cloud journey in a small way. In FY 2016-17, Redington would work towards engaging with relevant partners in the Digital India and smart city projects. The company is also putting in place systems and processes in preparation of the introduction of GST in FY 2017-18. With pan-India presence, Savex Computers offers its vendors access to more than 7,000 channel partners in over 475 cities and towns of India. In FY 2015-16, the company has signed new partnership with Aruba, HP (PC and Printer) and HP Enterprise (servers, storage and networking). In FY 2016-17, the company is focussing on growth in existing lines as well as expansion of existing product portfolio. HCL Infosystems is one of India’s largest consumer distribution networks for mobility, consumer electronics and appliances and has an extensive strength of 1,800+ channel partners. In FY 2015-16, HCL Infosystems becomes exclusive pan-India distributor for all Microsoft devices. Beetel Teletech, part of Brightstar, is No. 1 specialized wireless distributor in the world and leader in innovation and diversified services for the wireless industry. Beetel Teletech’s distributes Apple, Samsung, Huawei, Panasonic and ZTE smartphones in the Indian market and all the smartphone brands have performed exceptionally well in FY2015-16. Being one of the topmost IT distributors, Rashi Peripherals has partnered with over 9,000 channel partners in more than 750 towns and cities. The company has done extremely well in components, peripherals, PCs, networking and mobile business. In FY 2015-16, Rashi has signed distribution for Fitbit, Western Digital and Belkin. Iris Computers is one of the largest domestic national distributors for IT hardware and services. Lenovo is Iris Computers largest brand partner and contributes more than 40 per cent of its revenue. Iris distributes all products of Lenovo – be it consumer, commercial and enterprise products – servers, service packs or tablets other than mobile phones. The company is planning to foray into mobile phone market to leverage its channel base and also to increase its revenue. The company is also focussing on value-added distribution by either acquiring value-added distributor or setting up its own unit. In FY 2015-16, Compuage Infocom forged relationship with Checkpoint, SAP, Lenovo, Reliance Jio, Tyco, BenQ and SanDisk. The company has 9,000 channel partners spread across 650 cities and plans to expand 11,000 partners spread across 700 cities in FY 2016-17. The company generates 50 per cent of its revenue from B-, C- and D-class cities that account for 40-per cent market share of India’s IT hardware market. Majority of Compuage revenue comes from computer components. In FY 2015-16, it increased Cisco’s revenue by 3X in India and SAARC countries. In FY 2016-17, Compuage is banking a lot on its partnership with Reliance Jio as the company is not going to offer just broadband only. Supertron Electronics has emerged as one of the leaders in the Indian IT hardware industry. The company has signed up with Gionee as their regional distributor for South India. In FY 2015-16, the company has also signed new partnerships with ZOTAC, Corsair, Saphire, AverMedia and Xerox. Supertron’s key priorities in the next fiscal are to enhanced supply chain efficiencies, the ability to reach products across the country and scale a brand's growth in the shortest possible time and at the lowest cost. The company is also focussing on strategic business collaboration. Sonata Software had a great year in 2016 with many key new client wins and strategic acquisitions. Sonata also acquired a premier United States-based Microsoft Dynamics partner IBIS, GISV offering proprietary Advanced Supply Chain Software solution as well as Halosys, an innovator in providing a unified mobile technology platform to strengthen footprint as an industry-specific digital solutions provider. In FY 2015-16, Sonata Software signed distribution agreements with one of the largest DTH/cable hardware and software makers, world’s leading battery designer and manufacturer and one of the large software companies focussed on delivering enterprise products for higher educational institutions. The company is forecasted to perform well even in FY2016-17 as the Indian market is witnessing a shift from 3G to 4G. With GST likely to be implemented from April 2016, the ICT distributors need to get it implemented so that things become smooth both from accounting and regulatory point of view.

Pravin Prashant pravin@varindia.com

Ingram Micro Company’s Turnover (2015-16): Rs. 19,800 Cr Company’s Turnover (2014-15): Rs.15,823 Cr Company’s Turnover (2013-14): Rs.14,128 Cr Head of the Organization: Jaishankar Krishnan, Managing Director Address: 5th Floor, Block B, Godrej IT Park, Pirojshanagar, LBS Marg, Vikhroli West, Mumbai 400079 Contact No.: +91-22-39894645 | Website: www.imonline.co.in Company Profile: A subsidiary of Ingram Micro Inc., USA, Ingram Micro India is one of the top IT distributor in India. It has a nation-wide presence at nearly over 40 locations. It has an extensive market expertise in providing a comprehensive product line from a single source. It is known as a leading wholesale provider of Computer Systems & Components, Peripherals and Printers, Networking Solutions, Computer Storage Systems, Supplies and Accessories, Application Software and Support Services. Ingram Micro is committed to be the best wholesale provider of IT products and services in India providing real value tocustomers and principals. Products & Solutions: Ingram Micro has 75+ brands with them. To name a few, Microsoft, Apple, IBM, HP, Intel, Acer, Cisco, Autodesk, Emerson, Samsung, Lenovo, Fortinet, Logitech, Riverbed, etc.

Redington India Company’s Turnover (2015-16): Rs 15,000 Cr Company’s Turnover (2014-15): Rs 14,610 Cr Company’s Turnover (2013-14): Rs 13,657 Cr Head of the Organization: E. H. KasturiRangan, Jt. Chief Operating Officer (non-IT Div.) and P. S. Neogi, Jt. Chief Operating Officer (IT Div.) Address: Ground Floor, "Centre Point" Plot No. 8 and 11 (SP) Thiru-Vi-Ka Industrial Estate, Ekkaduthangal Guindy, Chennai - 600 032 Contact No.: 04442243353 Website: www.redingtonindia.com Company Profile: Redington started its operations in India in 1993 and was listed on the Indian stock-exchanges in 2007. It is a broad-line distributor in India covering both Volume and Value distribution in the IT space as well as Mobility solutions in the Communications space. Redington partners all leading technology vendors in the world and does it business through a 14000+ strong partner family. Apart from its distribution business, Redington offers Support Services through its wholly owned subsidiary Ensure and 3PL logistics solutions through ProConnect, another wholly owned subsidiary. Journey in 2015: Redington has experienced a definite upsurge in the businesses that cover Infrastructure and Security & Surveillance space. Banking, Telco and BFSI segments have seen investments and continue to do well. While demand has been muted in the Consumer space, Commercial and SMB sector has been upbeat. Redington has invested significantly in Inside Sales, Pre-Sales, Technical Sales and selected Implementation resources, along with POCs and Demo Units to help our partners in better address their customer’s requirements. Milestones achieved in 2015: The most significant development for Redington was setting up Cloud Practice by developing Digital Transaction Portal, putting in place the Cloud leadership team, entering into partnerships with key vendors in the cloud space and starting the Cloud journey in a small way. The 3PL logistics arm also consolidated and expanded its presence in the logistics solution space by adding many more customers and significantly improving its coverage of different industry verticals.

Savex Technologies Company’s Turnover (2015-16): Rs 7,070 Cr Company’s Turnover (2014-15): Rs.5,905 Cr Company’s Turnover (2013-14): Rs.4,681 Cr Head of the Organization: Anil Jagasia, Chairman & Managing Director Address: 124, Maker Chambers III,12th Floor, Nariman Point, Mumbai - 400 021 Contact No.: 022 - 2279 9999 Website: www.savex.org Company Profile: Savex Technologies is among the top ICT National Distributors in India with 42 warehouses and 72 Sales office. With a Pan India presence and almost three decades of expertise in Distribution, Savex offers its Vendors access to more than 7000 Channel Partners, Retailers, Corporate Resellers, VARs & System Integrators in over 475 cities and towns of India. Current focus of the Company: Retail expansion, Enterprise segment and SMB Journey in 2015: The journey was good with a growth of over 16% over the previous year. Savex provides complete Supply Chain Management Solutions to partners and provide complete Value Addition to its Vendors. Milestones achieved in 2015: Savex has entered into new partnership with Aruba. HP split into two separate companies, one for PC & Printers and the other for Servers, storage and networking, it partners with both the companies HP Inc. and HPE. It has achieved growth in a not so easy year. Products & Solutions: The products distributed by Savex are Notebooks, Desktops, Inkjet & Laser Printers, All In One Printers, Plotters, Servers, Storage products, TFT & LCD monitors, Cartridges, Toners, Mice, Keyboards, Hard Disk Drives, Optical Disk Drives, Mouse, Webcams, Multimedia speakers, Feature phones, Smart Phones, Microsoft Software, Servers, Storage Devices, Networking Equipment, Toughbook, Accessories and other Computer peripherals.

HCL Infosystems Company’s Turnover (2015-16): Rs. 4,970 Cr Company’s Turnover (2014-15): Rs. 5,404 Cr Head of the Organization: Bimal Das, Joint President Enterprise Products, Distributions Business Address: E-4, 5 & 6, Sector 11, NOIDA 201 301, UP Contact No.: +91 120 2526518/19, 2520977 | Website: www.hclinfosystems.in Company Profile: HCL Infosystems is one of India’s premier IT Services, Distribution and Digital Solutions Company, enabling organizations to attain and sustain competitive advantage by leveraging Information and Communication Technologies. It offers a comprehensive portfolio of capabilities spanning IT & System Integration services, digitally-enabled learning to value-added distribution of technology, mobility and consumer products. Journey in 2015: HCL Infosystems is uniquely positioned to be the Technology Lifecycle Partner of clients by consistently providing Milestones achieved in 2015: HCL achieves exclusive pan-India distribution for all Microsoft devices, Services business enhanced capabilities in Emerging Technologies such IoT and Cloud, Deployed the Converged Defence Communication Network for the three armed forces, dedicated to the nation, Launched PULSE - the mobile-enabled weekly self-assessment system, As the Managed Service Provider for UIDAI project, generated 100 crore unique identities through Aadhaar cards, HCL Infotech was felicitated at the 11th Elets Annual eINDIA Summit 2015 for creating World Class IT Infrastructure transforming e-Governance in Madhya Pradesh, HCL Learning recognized for DigiSchool at the India Didactics Association, National Quality Excellence Awards for ‘Best Operational Process’, ‘Best Achievement of Integrating Lean and Six Sigma, 2015’ at the global awards for Excellence in Quality Management & Leadership by World Quality Congress Products & Solutions: Distribution (Third-Party Consumer Products (including Telecom) & Enterprise Products), Services (Enterprise Services [Domestic, Care and Global Services (MEA and Singapore)]), Learning (Learning content business), Hardware Products (System Integration and Financial Inclusion and Solutions)

Beetel Teletech Company’s Turnover (2015-16): Rs. 4,300 Cr Head of the Organization: Deval Parikh, Chief Executive Officer, India Address: Beetel Corporate Center, First Floor,B Wing, Plot No.16,Udyog Vihar Phase IV , Gurgaon-122001 Contact No.: +91 124 4823500 | Website: www.beetel.in Company Profile: Incorporated in the year 1985, Beetel, a Brightstar Company, is a leading distribution and manufacturing company in India offering a wide range of innovative products in mobile handsets and accessories, fixed line telephone, enterprise solutions and IT peripherals. Beetel’s distribution reach across India includes more than 500 distributors, 10,000 retailers and 28 warehouses. Products & Solutions: Apple, Avaya, Polycom, Samsung, Panasonic, Transcend, Huawei, RADWIN, ZTE, Ruckus, RAD Data Comm, Actelis Networks, AMX, Barco

Rashi Peripherals Company’s Turnover (2015-16): Rs 3,200 Cr Company’s Turnover (2014-15): Rs.2,984 crore Company’s Turnover (2013-14): Rs.2,180 crore Head of the Organization: Suresh Pansari, Director Address: Ariisto House, 5th Floor, Junction of N. S. Phadke Road, TelliGali, Andheri (E), Mumbai – 400 069 Contact No.: +91-22-61771771/72 Website: www.rptechindia.com Company Profile: Leading IT & Mobile brands have counted on Rashi Peripherals to get penetration into the Indian Market since 27 years. The company has partnered with over 9000+ dealer partners, retailers and direct customers in over than 750 towns & cities. Rashi has simultaneously opened numerous offices and service centers across India. Rashi has created a strong IT infrastructure and unique marketing ideas that have helped to put their partners on a pedestal. Their Compound Annual Growth rate stands at 21% for the last 10 years speak volumes about the efficiency of its employees. Journey in 2015: It has grown at a CAGR of 21% YOY. Continue having an all-round growth in Components, Peripherals, PC, Networking and mobile business. Rashi continues to bring world’s best brands, Products, Solutions to the Indian consumers. To continuously expand Rashi reach of 53 branch offices and 55 service centers. Milestones achieved in 2015: Key Distributor & Fastest Growing Distributor (2016)– Logitech, Most Valued Distributor (2015) – Netgear, Best Distributor for New Partner Acquisition (2015) & National Distribution Commercial (2014-2015) – Lenovo, Geo Distributor Award ,2015 – APC, "Top Distributor Award”, 2015 – Intel and many more. Products & Solutions: Since inception in 1989 Rashi has been adapting to the changing business environments and updating skillsets required. While it started just as an importer then focusing only on components, then adding peripherals, and then adding networking, followed by PC business and finally adding the mobility business. Rashi has changed with the changing times. Although it started just as an importer then focusing only on components, then adding peripherals, followed by networking, PC business and finally adding the mobility business. We have changed with the changing times.

Iris Computers Company’s Turnover (2015-16): Rs. 2,973 Cr Company’s Turnover (2014-15): Rs.2,573 Cr Company’s Turnover (2013-14): Rs.2,121 Cr Head of the Organization: Vishal Sopory, Chief Executive Officer Address: A-155, Road No. 4, Mahipalpur, New Delhi- 110037 Contact No.: +91 11 2678 2505 Website: www.iriscomputers.net Company Profile: Headquartered in New Delhi, Iris Computers is among the leading distributors of the country in the field of IT Hardware and Telecom. The company has more than 35 billing locations throughout India, which have full – fledged offices having sales, operations and finance team to support channel partners in fulfilling their customer orders. The company has a strong channel base of channel partners, aggregators, regional distributors, large format retailers & large SI partners of over 6000. Over the years Iris has formed strong partnerships with world reputed IT vendors to distribute their products and create a market for their products & solutions. Products & Solutions: Acer, APC, BenQ, BPE, Brocade, Canon, CONSUL NEOWATT, Dell, Delta HP, Huawei, Inspur, IBM, Lenovo, LG, Mircom, Numeric, Philips, QNAP, Samsung, Wacom, WD

Compuage Infocom Company’s Turnover (2015-16): Rs.2,690 Cr Company’s Turnover (2014-15): Rs.2,129 Cr Company’s Turnover (2013-14): Rs.2,200 Cr Head of the Organization: Atul Mehta, Chairman & Managing Director Address: D-601/602 & G-601/602, Lotus Corporate Park, Graham Firth Steel Compound, Western Express Highway, Goregaon (East), Mumbai - 400 063. Contact No.: 022-67114444 | Website: www.compuageindia.com Company Profile: Incepted in the year 1987, Compuage Infocom is among the top IT distributors of India. Over the years the company has positioned itself as the most sought after, value added distributor of global IT brands. It has a strong IT-enabled distribution backbone, a solid financial and inventory management system, a young and dynamic sales team and a committed channel spread across the country. The Company has wide network of 10,000 channel partners across 650 cities and towns, ensuring timely product distribution across a largest geographical spread within the shortest possible time. Compuage earns 50% of its revenues from B, C and D class Indian cities that account for a 40 percent share of India’s IT hardware market. Products & Solutions: ADATA, Asus, BenQ, Check Point, Cisco, HP, Reliance Jio, K7 Computing, Kingston, Lenovo, Lite-On, Microsoft, AOC, Numeric, RELiCELL, SAP, Samsung, TE Connectivity, Toshiba, TP-Link, Tyco, ViewPaker

Supertron Electronics

Company’s Turnover (2015-16): Rs. 2,300 Cr Company’s Turnover (2014-15): Rs.1,948 Cr Company’s Turnover (2013-14): Rs.1,554 Cr Head of the Organization: V. K. Bhandari, Chairman & Managing Director Address: No. 2, Cooper Lane, Off R. N. Mukherjee Road, Kolkata – 700 001 Contact No.: +91 33 4037 1000 Website: www.supertronindia.com Company Profile: Supertron Electronics has emerged as one of the leaders in the Indian IT hardware industry. Established in 1993 in Kolkata by V.K. Bhandari. From the inception Supertron has been patronized for its highest standards of business ethics & delivering to keep its promises each and every time. 2003-04 was a turning point for Supertron when the Company made the big leap. From a regional footprint, the Company graduated to national distribution of IT products. Passion, teamwork and sheer determination for growth with fair and ethical business practices has been the key to Supertron’s growth. Always believing that progress is powered by partnerships, Supertron became one of the top ITorganization in the country by building a strong dealer / reseller network within a short span of twenty two years. Today, it is one of the largest IT product distribution and service provider company nationally. Today, the company operates through 35 branch offices and 18 satellite branches in India. Supertron has created the niche area in the industry as Value added focussed National Distributor and have grown over the period of last 5 years of so on that strength of ours. Current focus of the Company: Supertron has four business verticals- IT distribution, LFR, Enterprise and mobile/Telecom. Journey in 2015: As an organization, Supertron is evolving on the basis the change in market dynamics & requirement. After having a strong foot print in consumer business Supertron entered into mobility & at the same time also focusing on commercial space with product & solution offering. In 2015-16 Supertron sees itself establishing well in Mobility space with global brands and that too end to end execution , Enterprise Vertical also has been an Achievement in last year where in it has strengthen the presence in Enterprise space with brands like Dell –Wyse etc. Milestones achieved in 215: Supertron Electronics has received No1 Distributor award from Acer and Best Brand Strategist of the year 15-16 by ASSOCHAM. Products & Solutions: Supertron offers a wide variety of products and solutions including Desktops, Laptops, PC components, Peripherals, Memory, Storage, Networking, cloud Computing and Mobile distribution business. It also has one of giant brand, Gionee in its portfolio. Along with these core businesses, Supertron is also into other businesses like IT Enabled Services. Supertron Infotech is the ITES division of the company offering a wide range of value added services in the field of ITES.

Sonata Software Company’s Turnover (2015-16): Rs 543 Cr Company’s Turnover (2014-15): Rs 471 Cr

Head of the Organization: P. Srikar Reddy, Managing Director & Chief Executive Officer Address: APS Trust Building, Bull Temple Road, N. R. Colony, Bangalore - 560 019, India Contact No.: +91-80-6778 1999 Website: www.sonata-software.com Company Profile: Sonata Software is a global IT solutions and services company with a track record of serving world leading Independent Software Vendors and Enterprise customers. Sonata’s focus on quality people, robust delivery methodologies and a global footprint of operation has helped it achieve strong business performance, enabling it to emerge as a reliable partner for best-of-breed customers, in its strategic IT initiatives. Sonata Information Technology Limited is a 100% subsidiary of Sonata Software Ltd. focussed on technology infrastructure and systems integration services for the Indian market. The company delivers strategic technology solutions for Travel, Retail & Distribution and Software Product companies. Journey in 2015: Sonata had a great year 2016 with many key new client wins, strategic acquisitions, significant awards and development of important new products &services. Milestones achieved in 2015: Sonata was recognized as finalist for 2016 Microsoft Hybrid Cloud & Infrastructure platform award, Microsoft Country Partner of the Year Award, SAP Marketing Partner of the Year award 2016 and a Best Vendor for its Outsourced Engineering Facilities from Microsoft. Sonata’s travel team developed a new offering, Digital Rail while our mobility team came up with new virtual reality based applications strengthening our digital solution footprints. Sonata won significant number of new clients in its focus Dynamics AX and SAP Hybris competencies. Products & Solutions: Sonata has developed and acquired digital platform solutions and products which would be the game-changer and would help enterprises to ‘enable the future’. Among its key products, Sonata offers the following: • Brick & Click - an integrated platform spanning ecommerce, mobile engagement, retail operations and business insights to integrate online and store led retailing • Rezopia - cloud based travel reservation, operations and distribution management system • Halosys – Unified enterprise mobility platform • ASCS – Advanced Supply Chain Software for modern distributors • Retina – big data ready retail analytics platform

Aparna Mullick aparna@varindia.com