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The Next 25 Club lists those companies who have the potential to be
serious contenders, to be among the top 25 next year. And with growing markets
and increasing focus on 'moving up the value chain' the competition could be hot
The reason the Next 25 Club came into being was to give impetus to other
aspirants who wanted to be in the Silver Club and also acknowledge their
contribution. There is often a lot of movement from the Next 25 Club to the
Silver Club every year. However, this time around, two companies registered a
negative growth.
After the Silver Club, the DQ Channels Next 25 Club is one which is most
competed for amongst the channel. This is because there is no other publication
that spares a thought for those companies that might not have made it to the
main ranking. By gaining an entry into the Next 25 Club, these companies get a
recognition for their endeavors, which otherwise would have been overseen.
Overall, the other players in this section had a good run throughout the
year. In fact Digicom Systems posted a growth of 49 percent, surpassing the
growth rates of any other player in the Silver Club itself. Jupiter
International's fall from grace from the Silver Club to the Next 25 Club was
largely because the company decided to discontinue its distribution alliance
with Seagate. Herein lies a lesson for other distis that over-dependence on a
single brand can be dangerous to the top line and bottom line in the long run.
Nonetheless, Jupiter is confident that it will be able to make it back to the
Silver Club next year with healthy turnover, backed up new vendor tie-ups.
Park Electronik and Computer Empire were two other likely contenders for the
Silver Club who failed to pass the revenue muster and had to placate themselves
with a spot in the Next 25 Club.
Micromax just missed the entry to the Silver Club by a few decimal points.
There were also two companies-Agmatel and RR Systems-which did not have any
growth in the last fiscal.
On the SP side, Future Businesstech fell 20 rungs from its erstwhile position
of #7 before settling to #27 in the Next 25 Club. This makes it the only SP to
have dropped so many levels lower.
The growth percentage in this section of the Club was very healthy with 19 of
the present companies scoring growth in double digit percentages. Leading Edge
was the only company that did not register a growth maintaining its turnover of
Rs 40 crore for two years running. The lowest growth amongst SPs was posted by
Progression Infonet at three percent while Vishal Peripherals managed the same
amongst distributors.
Clearly, while the top 25 distributors and solution providers did a great job
in 2006-07, the next 25 have the potential to be serious contenders. And with
growing markets and increasing focus on 'moving up the value chain' the
competition could be hot.
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