CHAMPION-PACIFIC STALEMATE

The issue is...

"If Champion Trading & Services realized that Pacific Infotech was not able to sell its products, they should have taken back the same"

Kishore Jeswani Director, Pacific Infotech

In the process of being appointed as a distributor for
Champion UPS, it was mutually agreed that if stocks were not moved within 45
days of purchase, Champion Trading and Services (CTS) will make all efforts
towards helping us liquidate the stocks. However, this did not happen. As a
result a large amount of stock which was purchased in December 2001 is still
lying unsold with us. We also have not been compensated in any manner for the
same.

MoU promises are not met...

As per the MoU signed between Pacific and CTS, it was agreed that CTS will
liquidate the stock if products did not get sold within 45 days. If CTS realized
that we were unable to sell the products, they should have taken back the same.
However, these UPSs continue to lie with us and the batteries of many have also
started to leak, rendering them unusable. If CTS’ intent was to put the
complete responsibility of selling on us, why in the first place did it agree to
help liquidate the stocks in the MoU?

CTS has been incommunicado...

Despite having communicated the status on unsold stocks, CTS did not take
concrete action and all our efforts to contact them have gone in vain. All our
mails, faxes and telephone calls till date have remain unanswered. As a reputed
brand, we expect officials from Champion to come face to face to sort out
issues.

Our customers have been denied service...

The most unfortunate aspect is that few customers who have bought Champion UPS
from Pacific are being denied service from CTS. This is unjustified as customers
should not be affected because of differences lying between us. Also as long as
the product belongs to Champion, it is obliged to offer services irrespective
from whom the customer procured the product from.

We are willing to clear outstandings...

Whatever outstanding amount that is due to CTS would be willingly paid by
Pacific, under the condition that CTS shows interest in taking efforts towards
liquidating stocks. It would not make business sense to clear the dues with the
stocks lying unsold with us. And for that, they need to first communicate with
us and sort out the differences across the table. As a businessman, I am also
here to make money. But at the same time, our organization is more than keen on
finding an amicable solution to the entire issue preserving interests of both
parties.

Pacific should have ensured that the goods got sold...

" If Pacific Infotech clears the overdue outstanding to us, we would redirect customers to Pacific to buy products from them"

Ranjit Mohite Jt MD, Aar-Em Electronics

Pacific was appointed as a distributor by CTS and not
purely a stockist. And as a distributor it was its primary function to build a
market and actively promote the product for which it was even entitled to
special prices. So does it make business sense to have a distributor who makes
no selling efforts? Our role was to give marketing and advertising support by
way of sending mailers/letters to dealers making them aware about Pacific and we
have performed that role to the best of our satisfaction.

MoU clause has been misinterpreted...

The clause in question clearly states that it is the primary responsibility of
Pacific to sell the purchased goods within 45 days failing which CTS will assist
it in selling the same. The responsibility of CTS was limited to help Pacific
sell its stock and cannot be held responsible if Pacific fails to liquidate the
stock. At no point of time we force a distributor to purchase goods. It is
entirely the distributor’s risk if he wishes to stock the product.

We are very much reachable...

We disagree to the claim that we have been incommunicado. We admit receiving a
fax from them three months ago. However, we found the contents very rude and the
language unprofessional. It was against our ethics to reply to such kind of
communication. As of today also, we are very much willing to listen to them
provided they approach us the right way.

We will service all customers...

As long as a customer has purchased a genuine Champion product, he is entitled
to get service from us. We would like to know which customers Pacific is talking
about who have been denied service from Champion purely on the ground that they
have purchased from Pacific. Ultimately it is the Champion brand which is at
stake and we will not allow customers to suffer because of these issues.

CTS wants to arrive at a rational solution...

As the owner of a reputed brand, we too are keen to arrive at a rational and
mutually acceptable solution. We are willing to take all efforts in helping
Pacific liquidate the stocks. If it clears the overdue outstanding to us, we
would redirect customers to Pacific to buy the product from them. But the
solution has to be in such a manner that it benefits both the parties and help
end this long-lasting stalemate.