Early engagement, seamless liaising with vendors and partners and tightly controlled operational efficiencies helped this organisation
Redington India had a good 2018-19, registering 11.6% growth. Its revenue in FY 2018-19 was USD 2,900 Mn, as against Rs. 17,879 crores in FY 2017-18 (Apr-Mar). This projected growth of 11.6% for the year.
Strong engagement with PC vendors helped grow the PC revenue even during a period of overall flat industry growth. RIL also grew the wallet share in Print HW and Print Consumables with major printer vendors through effective alignment with their GTM strategies.
In the Enterprise & Infrastructure space, early engagement, seamless liaising with vendors and partners and tightly controlled operational efficiencies helped us capture some of the largest ever project orders executed by a distributor.
The cloud-business doubled, quarter-on-quarter, each quarter, during FY 18-19.Redington’s Cloud Managed Services Business started showing meaningful traction, with wins in a few prestigious customer accounts. RIL also focused on improving operational leverage and Opex Optimization across functions.
RIL delivered a double-digit revenue growth and commensurate earning, while maintaining strict emphasis on business hygiene. The cloud business vertical maintained very strong momentum, and delivered outstanding business results, while being acknowledged by all leading cloud vendors as the best model adopted by a distributor, not only in India, but in the entire APAC region.
Difficult credit environment impacted business hygiene and has put strain on working capital requirement. Demands for longer credit periods burdened distributors with increasing interest costs and has adversely impacted the distributors’ ability to invest in business.
The overall demand has been steady during 2018 and pockets of growth are available. Investments in Digital India and Smart City projects have provided momentum. RIL has also been able to engage with vendors and partners to capture fair share of all growth opportunities.
The primary challenge has been lack of sufficient liquidity in the market, which has elongated the credit cycles, adversely impacting working capital deployment levels.
During 2019, Redington will complete the first phase of transforming to a digital organisation, targeted not only towards digitalizing all our internal processes, but also towards converting a major part of our future business to seamless, automated, digitised transaction experience for our customers.
Cloud will remain a high focus area with emphasis on accelerating Redington Managed Service Practice business, in support of the partners.
—RAMESH NATARAJAN Jt. COO, Redington
—J K SENAPATI Jt. COO, Redington