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Channel in UP, Uttaranchal complain of cartel

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DQC Bureau
New Update

Channel partners across Uttar Pradesh and Uttaranchal are complaining that

distributors like Redington and Ingram Micro are practising cartel formation for

sometime in their region. Annoyed with the cartel form­ation by distributors in

the state, channel partners in Uttar Pradesh are planning to take the issue to

UP Computer Dealer Welfare Association (UPCDWA) level.

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“Cartel formation is everywhere. Margins of IT products keep dwindling and

this directly hits our position in the market. At times, we sell HP printers at

a price that is 10 percent lower than the actual rate. Then dealers have to make

up their margin from the sales of other products,” commented Shiv Shankar

Prasad, CEO, Allahabad-based Stek Systems.

According to channel partners in different regions of the state, distributors

keep on changing the rate of cartel and this affects the pricing and

profitability at their end. Parfula Somani of Varanasi-based Jwala Distributors

informed that as the rate of cartel changes, it adversely affects the

profitability and credibility of partners.

“Different dealers sell products at different prices and this affects

reputations in the market. If the prices are compared, customers feel that a

dealer, who has purchased stock at higher rates, is cheating him.” he said.

However, Rohit Kohli, CEO, Kanpur-based Comexcell Technologies informed that

he is not aware of any such cartel formation in his region.

When enquired, officials from Redington did not comment on the matter.

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