Network Distributors

1. MRO-Tel Ltd

With a total business of Rs 124.86 crore during 2000-01, MRO-Tek has emerged

as the largest value-added distributor of networking products in the country.

This company, which has also the distinction of being the first networking and

access solutions company in the country to get listed on Indian bourses, is

simply the Indian digital modem king. Only MRO-Tek, over digital modem, has the

kind of dominance that Cisco has over routers. However, it also took major

strides in segments like multiplexers, Layer 3 switching, security/VPN, ISDN

routing and laser communications being the latest. Global partners include RAD,

which alone accounts for almost 90 percent of its revenue, Extreme Networks, Zyxel, Breezecom, RADGurard and Cobalt among others. Unlike other distributors,

who depend on logistics expertise and partnership management, MRO-Tek puts more

emphasis on value adding through its manufacturing experience and engineering

prowess. Not that it is weaker on trading side–it is clearly responsible for

the brand recall that RAD, today, enjoys in India. However, MRO-Tek wants to

leverage more on its intrinsic technology skills by getting more aggressive on

manufacturing. With more aggressive expansion of its manufacturing unit in

Bangalore, it wants to change its traded products, manufactured product business

mix from 60:40 to the other way round. MRO-Tek is one company that has earned

its right place as the flag holder for the Indian networking companies’

bandwagon.

2. Tech Pacific (India) Ltd

Tech Pacific (India) Ltd, the second largest networking product distributor

in the country, works closely with both vendors and resellers alike, with a

two-tier, focused distribution model. This is what sets Tech Pacific apart from

others. The networking portfolio of TPIL is divided into two separate divisions,

namely, volume and value. And the company has to its credit the biggest names in

the networking products companies in the country.

It represents around 25 top global IT manufacturers wanting to gain market

share in the Indian sub-continent. While 3Com, Accton, Tyco and Avaya fall under

its volume division, the value division boasts of Cisco and Nortel. The company

has a comprehensive portfolio with networking products, PCs, peripherals,

software, OA products and supplies. TPIL has been able to maintain the status of

being the ‘most favoured’ distributor in the Indian market due to its proven

track record of being able to catapult its vendors to the No. 1 or No. 2 market

share position.

Channels addressed by the company include system integrators, system

assemblers, networking specialists, etc. The company has registered over 5,500

customers countrywide. Policies and processes are in place to ensure that

adequate attention is provided to the smaller customer to grow.

The success of TPIL can be partly attributed to its vast geographical spread

as well.

3. Ingram Micro India Ltd

For Ingram Micro India, the subsidiary of the world’s largest wholesaler of

technology, it was a year of consolidation of networking products. In its

objective of being in the forefront of helping resellers and manufacturers meet

their customers’ demands, the company went on to not only establish itself as

a leading player for networking products, but also became an end-to-end provider

of networking solutions to channels. In that effort, Ingram grew, revenue-wise,

around 45 percent over the previous years’ Rs 62.18 crore, to rake in Rs 90

crore of total sales earnings. In the process, it also claims to have become the

No. 1 distributor to Cisco, 3Com and Intel, with sales revenues of Rs 25 crore,

Rs 10 crore and Rs 11 crore respectively. Its global image and wide geographical

spread, with 22 locations all over the country, helped it to rake in such good

revenue in the short span of 18 months into networking in India. While this

paved the way for its growth on one hand, its strategy to add new product lines

and principals, along with aggressive marketing schemes for resellers, bolstered

its presence on the other. It added MRO-Tek for ASM/RAD leased line modems and

Linksys for SME market portfolio. With increased focus this year on adding newer

product lines, offering new value-added services, initiating a stronger drive to

fulfill the business market, etc., Ingram looks all set to consolidate its

market position and achieve leadership status across all networking product

lines.

4. i2i Media Ltd

Founded in 1987, i2i Media has achieved an exceptionally good growth of about

76 percent and a turnover of Rs 67 crore. The growth is lower than the previous

years’ growth of 90 percent. The company has a strong focus on broadband

technologies like wireless, fiber optic transmission equipment and DSL. For

distribution of these products in India, the company has tie-ups with Western

Multiplex for microwave radios and wireless radios; Ericsson for HDSL modem; and

Nortel for switches and optimux.

Of these, HDSL modem contributed Rs 13 crore, microwave radio contributed

around 60 percent of the revenue, fiber optic transmission equipment contributed

Rs 11 crore and switches contributed around Rs 3 crore. Some of the key clients

in the last fiscal were STPI, VSNL, GECIS, Churchill India, Minerva Telecom,

Hero Corporate and eCall Teleservices.

With a technical strength of 120 people, the company has presence in

twenty-six cities of India.

i2i’s corporate vision is to develop a digital platform to provide access

in order to deliver its own and third party services to a wider audience. The

company also provides nationwide call center services in 25 major cities of

India that can be utilized for providing better services to the clients, in

terms of customer support and after sales service.

5. Apcom Computers Ltd

For Apcom, the survey period was continuation and consolidation of its tryst

with Dax. The success it tasted with the introduction of the Dax range of modems

in FY 1999-2000 led it to realign its multiple vendor focus and make a

turnaround. And going by its financials for the year, it’s clear that Dax has

made a strong dent. Out of a total revenue of Rs 52.50 crore from networking,

Dax alone accounted for Rs 36.20 crore of revenue. This, at first glance, looks

like nothing unusual. But considering the fact that it has been in the

networking industry since 1988 and was pushing Compex till the last fiscal among

other vendors, the decision to promote Dax was a demanding task. Today, for

Apcom, it is Dax all the way in modems, NICs, hubs and switches; Eicon for

routers and ISDN modems; and Nordx for the cabling markets.

The success for Apcom comes because of its innovativeness. And a single

reason why it scores over others in the distribution game is its consolidation

on technical expertise and its value-add to the distribution process, by

providing ex-stock delivery, technical support, repair and warranty support,

market sensitive promotions, and its responsiveness to channel partners. Besides

the technical innovation, it has been very aggressive in its reach and sales

strategy. Now that the realignment towards Dax has been put in place, this

fiscal could be a landmark year for Apcom and Dax.

TO WATCH OUT

Ramco Systems

This Chennai-based networking major is one of those companies, which has been

successful on account of donning the hat of an integrator and a distributor.

While donning two hats has given it balanced success, both as integrator and

distributor, the same could be the reason for it to have notched a little less

than its capabilities. Simply because, as a distributor it carries only a few

principals–3Com, Nortel and Tyco. Nonetheless, carrying products from these

three, it did a total distribution revenue of Rs 31.08 crore and integration

revenue of Rs 40.18 crore. Also, in the process, it has become the largest

distributor of Nortel and Tyco in the country.

The strength of Ramco, today, is the successful transition from being a

distributor to being a focused player in the area of network infrastructure,

implementation, management and security. And a networking team of 85 people and

eight offices spread across the country. The success is clearly reflected in the

way it has bagged some key orders like BSE, NSE, etc. In fact, through the

integration revenue, the company clearly dominated in the banking and finance,

and government sectors. The two accounted for more than 70 percent of its

integration revenues. Clearly, from this year onwards, Ramco is on the way to

pitch for further complex projects, for which it is building up the necessity

capabilities. And its expert relationship management will help it to grow

further.