THE DQCI SILVER CLUB: DOWN, BUT NOT OUT

In tough market conditions, looking for growth is like groping in darkness. The business-savvy channel community of the DQCI Silver Club had realized this quite early during the financial year. 

It had seen a weak economy applying brakes on high growth rates in the middle of the previous year itself. So, during 2001-02, it was time for partners to look inward so as to trim costs and maintain a healthy

bottomline.

The members of the DQCI Silver Club were down, but not out, because even in trying conditions, they managed to produce a two percent topline growth–mostly from services -- while overall, the domestic hardware industry grew negative. The total revenue of the Club stood at Rs 7,764 crore in 2001-02 against Rs 7,605 crore of 2000-01.

TOP FIVE MAINTAIN RANK



The ranking in the DQCI Silver Club has remained stable till #5, with Tech Pac, Redington, Ingram Micro, Wipro and HCL Infosystems holding on to its one to five ranks of the previous year respectively. At #6 there is a major change. Compuage which held on to this rank for two years, has fallen behind to #12 with SES Technologies occupying its place. 

Priya has moved a notch up to #7 with Iris Computers climbing up two places to #8. Datacraft is another achiever which has climbed up three places to the ninth rank against last year's 12th. Nebula Technologies has made a rapid progress to reach #13 from a lowly #21 in the previous year.

Neoteric Informatique, which is a new entrant, is comfortably ensconced at #17, a position that was occupied by Sonata in the previous year which has moved up to #15. While Accel has shown that services do help the topline by reaching 20th rank from 25th, Aditya took a knocking from #11 in the previous year to this year's #23. 

DEMAND DIVES



The effects of the slump in demand are there for every one to see. The highest growth achieved by an individual company in 2001-02 was only 86 percent (Nebula Technologies) compared to the phenomenal 148 percent of the previous year (SES Technologies). Worse still, eight members of the Club had negative growth against three of the previous year.

The bad market conditions had a telling effect on two of the giant distributors of the DQCI Silver Club who could not sustain their growth projections. In fact, Tech Pacific had a small negative growth while Redington managed to remain flat.

The third giant among distributors, Ingram Micro, stood out with a well carved out 31 percent growth. 

Among the mid-cap distributors, Nebula did extremely well by achieving an 86 percent growth, the highest for any member in the DQCI Silver Club. 

Neoteric Informatique, a new entrant to the Club, with a growth of 30 percent, has shown that an innovative product basket can do wonders to both, top as well as

bottomlines. 

GROWTH TAKES BACKSEAT



A change in strategy coming at a difficult time can adversely affect the revenues as was the case with Aditya Infotech which registered the biggest fall of 48 percent in the DQCI Silver Club. Aditya discontinued the distribution of LG products and concentrated on professional multimedia and post-production products. The result was that revenues went down drastically, but value-added products brought in profitability. Compuage too saw a major dent in its topline from Rs 240 crore to Rs 160 crore registering a fall of

33 percent. 

UNIQUE MIX OF PARTNERS



The Silver Club presents the unique mix of partners that forms the top cream of the Indian channel community. The Club is dominated by distributors who are totally 15 and contribute a revenue of Rs 6020 crore. Then come the systems and network integrators who are eight with a revenue of Rs 1,622 crore. Only two hardware resellers could make it to
the Club with a revenue of Rs 219 crore. 

THE NEXT 25



If distributors dominate the DQCI Silver Club, the Next 25 Group is dominated by systems integrators who number 11 with a revenue of Rs 590 crore. Distributors and hardware resellers are in equal numbers at six each. But in revenue terms, the distributors are far ahead with Rs 355 crore, while hardware resellers contribute Rs 270

crore. 

From growth perspective, The Next 25 Group has done better than the DQCI Silver Club. The Group has registered an eight percent growth with a revenue of Rs 1,319 crore in 2001-02 against Rs 1,216 of 2000-01. 

The star performer among the Next 25 is Challenger Computers, a hardware reseller, that has registered a phenomenal growth of 122 percent. Next in line are two systems integrators, Tulip IT Services and PC Solutions with a respective growth rates of 69 and 57 percent.

BUSINESS  CATEGORY DQCI SILVER CLUBS



In an attempt to provide value-addition to vendors by presenting the star performers in each channel category and to recognize partners who have come up in their business the hard way, DQCI has presented Silver Clubs of distributors, systems/network integrators and hardware/software resellers for the first time.

Thus, in the DQCI Distributors' Silver Club, one finds the giant Tech Pacific at the top with a huge revenue of Rs 1,676 crore and Pulse Systems at the bottom with a meager Rs 26 crore. And yet, it must be a great feeling for all those listed in this Club that they come within the top 25 distributors of the country. 

What strikes glaringly in this Club is the huge gap between the distributors who are at third and the fourth places respectively. Ingram Micro at the third place with a revenue of Rs 1,220 crore is far ahead of SES Technologies at the fourth place with a revenue of Rs 244

crore. 

The story of revenue gap in the DQCI Systems/ Network Integrators' Silver Club is slightly different. This Club is dominated by Wipro with Rs 440 crore at the first place and HCL Info-systems with Rs 352 crore at the second place. 

The gap between HCL and Iris Computers which is at the fourth place with a revenue of Rs 190 crore is large, but not as large as it is between the third and the fourth places in Distributors' Club. 

HARDWARE AND SOFTWARE CLUBS>>>>>>>>

The members of the DQCI Hardware and Software Resellers' Silver Clubs are not in a position to boast of huge numbers as in the case of previous two Clubs. Yet, they can now proudly proclaim to the world that they are among the top 25 hardware and software resellers of the country which would attract immediate vendors' attention.

The revenue gap between the first member, Mediaman (Rs 110 crore), and the last member, MBO Computers (18 crore), in the Hardware Club is only Rs 92 crore. This gap is even smaller in the Software Club. Here, Softcell with a revenue of Rs 63 crore is at the first place and Fusion Software is at the last with Rs 1 crore. Clearly, hardware is a volume game while



software thrives on value-addition.

With the business category DQCI Silver Clubs now highlighting the contribution of partners to the growth of IT business, the channel community will now be in a position to recognize the achievers in its fold.

	THE NEXT 25
	THE DQCI SILVER CLUB OF SOFTWARE RESELLERS 2002
	READY RECKONER ON WARRANTY POLICIES
	THE DQCI SILVER CLUB OF SYSTEMS INTEGRATORS 2002
	THE DQCI SILVER CLUB OF HARDWARE RESELLERS 2002
	THE DQCI SILVER CLUB OF DISTRIBUTORS 2002