Distribution business has become bipolar now with Ingram and Redington expanding their operations and increasing their base considerably in the market. Redington managed with fast-paced growth and high-value products, which ensured good margins too in business

Redington continued with its growth streak over the last year too. The company crossed Rs 4,000 crore mark with an overall growth of 53 percent in the last fiscal, and value-business contributed significantly for it. In fact, it also ensured productive growth with more margins in the business. Thus, the company managed well both with topline and bottom line in the last fiscal. Another important development over the last year was the company making substantial investment in building capacity for the next phase of growth. 

It also started distributing consumer electronics and home appliances products, through LG, this year, which is touted as an innovative initiative and expected to change market dynamics in distribution business. It is just the beginning and the company bets heavily on this business, as there is no organized distribution structure for consumer electronics and home appliances products today. If Redington's bet turns out to be a success then the company would scale up new heights in business in the coming years.

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CEO: Jitendra Kulkarni
Highlights IForay into consumer electronics Strengthened value-business (product portfolio) Registered 53 percent growth to reach turnover of Rs 4,068 crorer

On the IT side, the company's key businesses such as systems, peripherals and components did brisk business. However, there is more scope for the company to improve in networking space. By and large, Redington did well in value-business by registering impressive growth in software, servers and storage segments. Major tie-ups made to strengthen its product portfolio include - signing up with Symantec, McAfee, Novell, Sybase, BEA, Fujitsu, Tyco, Linksys and Legato. Most of these relationships are for value-business.

In services, third-party maintenance and facility management contributed well for growth. Redington gave up on mobile distribution by exiting from Motorola handsets. Its mobile revenues fell considerably over the last two years and it did not make any sense for them to continue with it. Internally, the company strengthened its systems and processes, and used IT to leverage the business and service to its customers. It built its own e-commerce ERP backbone to support and enable its growing partners and business. It also set up reverse logistics call center with customized processes for each vendor.

Redington had considerable share from various business segments such as home, SOHO, BFSI, corporate (IT, ITeS, BPO), telecom and government, among others. As usual, South was the top region contributing nearly 33 percent of revenue, while West came second with 32 percent. North accounted for only 26 percent in the last year and East emerging as the potential market with nearly nine percent.

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