End fo the Road for Neo­teric

Paras Shah, CEO, Neo­teric In­for­ma­tique

DQ Channels - - Front page - ANKIT PARASHAR/ [email protected]­ber­me­dia.co.in) More on the web: Read the com­plete story at www dqchan­nels.com

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

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