Foxconn, manufacturer of motherboards, graphics cards, barebone and many other IA products, has now appointed SES Technologies as the national distributor for its products in India. The new appointment has put Foxconn's existing distribution arrangement with Mediatech in dire straits.

It was in May 2005, that Mediatech was appointed exclusive distributor by Foxconn to distribute its motherboards, chassis and cooling systems to resellers and retailers nationwide. However, the current appointment of SES Technologies as national distributor strips Mediatech India of its exclusivity.

In an interview to DQ Channels, Massarow Syen, Marketing Manager, Channel Service Division, Foxconn, spoke about the need for only one distributor in a particular region. This obviously puts Mediatech at a disadvantage when compared to SES Technologies, which has been operating on a national scale with a revenue of Rs 462 crore for the year ended 2005-06. Comparatively, Mediatech has its presence limited to the western parts of India only.

"Officially Mediatech continues to be our distributor. However, very soon we will have to choose between the two after taking in to consideration the future course of business," said Syen.

After studying the India market for the last one year, Foxconn's seriousness is evident from the stepped-up activities in India. To start with, it has rolled out dealer meets and media tours wherein it is announcing its product roadmap for the India market. It has also announced various channel schemes for sales of certain motherboards models.

Apart from these channel activities, the company is also contemplating manufacture of motherboard and graphic cards in India. Hon Hai Precision has also reportedly purchased one plant in India for OEM manufacture of cell phones. Though the company has not revealed more information about this setup, market sources claim that it is manufacturing mobile phones for Nokia under a non-disclosure agreement. 

Keeping this set-up in view, Foxconn official have revealed that it will set up an office in India by the end of year 2006 or in the early part of 2007. Commenting on the distribution tie-up, P Kurian Chandy, Chief Executive, SES Technologies said, "Foxconn has demonstrated manufacturing excellence for the last three decades through excellent quality and reliable products. It has been a OEM for many of the well-know brands and I am sure Foxconn hold a great potential to do well in India."

Foxconn currently has taken warranty and support of its products seriously and has already appointed third-party service center in seven cities. Meanwhile, SES is talking to the vendor to bag the service contract for Foxconn products through its group division for services and repair - Ultima Services.

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