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T Rajesh, CEO, VB Systems, Chennai, Tanjavur and Madurai is a distributor of IT products who mainly operates in Tamil Nadu and Pondicherry. Here he talks about his distribution business.
What was your revenue graph percentage in last 1 year?
It was about 50%, which was not bad considering the challenges we faced.
How much of it came from your primary distribution segment?
Almost 90% came from our primary distribution segment.
Which geographical areas do you cater to?
We mainly supply IT products to Tamil Nadu and Pondicherry.
How many metro and non-metro locations do you cater to?
Metros - Chennai, non-metros – Trichy, Pondicherry, Salem, Vellore, Coimbatore.
How many partners have you helped in supplying these products in non-metro locations?
We have helped about 380 partners in the non-metro locations in last one year. Since we mainly operate in Tamil Nadu and Pondicherry, many partners in the non-metro locations connect to us and they depend upon us for distribution of IT products in their area. Our network helps them to achieve their business goals.
What are the challenges you see in distributing your segment products? How do you resolve these challenges?
Distribution is changing in a new way in the recent times. Credit and payments are key issues, as the Indian markets have come under pressure and the IT products dealers, retailers and distributors have to work very hard to find cash for credit and making payments for the products they are supplying. We provide regular support and being strong in supply chain and our geographical reach, we are able to reach the right audience.
Do you have an online profile? On how many platforms?
We don’t have any online profile at the moment.
Do you export abroad? To which regions? What is your revenue percentage coming from foreign countries?
We are not exporting abroad at the moment.
–By Swaminathan B