Association of top 10 distributors on the anvil
The top 10 distributors in India with a total annual turnover exceeding 30,000 crore have decided to form a distribution consortium/association. Unlike in the past, this is expected to be formed as a legal entity and not as a loose association or group.
Ingram Micro, Redington, Supertron, Savex, Neoteric, Compuage, Iris, Rashi, Avnet and Inflow are the distributors that are part of this new initiative, which is expected to roll out in the next 15-20 days.
The association is expected to lobby with the government on policy reforms and taxation matters, work together to share information to avoid bad debts, and work with vendors to resolve channel policy and industry issues.
Obviously resellers are concerned about this association turning into a cartel. Remarked Toshy Mathew, Vice President, AKITDA, the leading channel association of Kerala, “The prime concern is if this will become a cartel and dictate terms to resellers. If that happens the IT channel will be badly hurt. But if they work for the betterment of the entire industry then it will be positive.”