End fo the Road for Neoteric
Paras Shah, CEO, Neoteric Informatique
Established in 1991, Neoteric Infomatique, one of the country’s premier national value-added distributors, has recently decided to close down their all IT distribution operations in the Indian market. The IT ND who has been covering 50+ cities in India closed their all 35 branches across the country.
This Mumbai based IT distribution giant had revenues of close to `2,000 crore in FY15 and employed around 800 people. The services of the entire workforce were terminated as of June 30. Paras Harshad Shah, CEO, Neoteric Informatique who started as an IT dealer, has been working with 42 major brands including the likes of Lenovo, Gigabyte and D-Link.
Responding for the media reports, Neoteric, which has been in business for past 25 years as IT distributor has confirmed its exit from the IT domain. However, ensures a safe future for employees.
“It’s been extremely dynamic, challenging and highly competitive, few months back we decided to move on from the distribution business. Every closure of business has its set of challenges, and some aspects are not easy, even we are going through our set of experiences but it’s all manageable and moving in the right direction”, a clarification mail came from a spokesperson appointed by Paras Shah, Founder of the company claimed.
“We are trying to ensure almost all Neotericians are well-placed and reviews are being conducted on a weekly basis to achieve this goal. Actions such as requesting other fellow distributors, vendors, other service providers or channel partners to look at them as possible talent are already mooted.”
IT professional also reacted on the same, Samir Mehta, Treasurer, Trade Association of Information Technology said, “This is very sad that after so many years of services in the field of IT, Neoteric decided to shut. There are many reasons of shutting business by partners and fall down in profitability is one of them”.
Harinder Salwan, Managing Director, Tricom Multimedia shared his views and said, “I know Neoteric personally since long back when they were into repair business in Dadar Mumbai. Over the years they transform into distribution
models and got more distribution principles. Then after lots of logistic issues and lack of management team of handing the huge distribution principals causes the demise of Neoteric what I personally think.”
The clarification also said that Neoteric will continue putting efforts to ensure 100% all members are placed and are comfortable. What next for neoteric - we will know soon, as of now focusing all energies on seamless and win-win closures. As per market sources, Neoteric has outstanding debt amounts of Rs.
200 crore with various vendors. Due to huge margin losses in recent quarters, the company has decided to close their all businesses from the Indian market. Some ill-fated acquisitions in the recent past and juggling of business streams might also have contributed to Neoteric’s demise.
Harinder Salwan, Managing Director, Tricom Multimedia
Samir Mehta, Treasurer, Trade Association of Information Technology
Paras Harshad Shah, CEO, Neoteric Informatique