INGRAM MICRO INDIA LTD: Looking forward to a big leap

Ingram focused on integration at all levels over the last year, since it
is completing one-year post its merger with Tech Pacific. The company
streamlined its process to avoid any disruption for vendors and channel
partners. Having stabilized itself, it is now preparing for a blazing growth in
the coming years

Distribution giant Ingram Micro registered only 13 per-cent growth in the
last year, which is very less compared to other leading distributors in the
country. Ingram spent the year mainly in integrating the infrastructures and
facilities, warehouses and product portfolios of Tech Pacific with its business,
since this was the first complete year for Ingram Micro in its new avatar (the
merged entity). Tech Pacific acquisition was legally consummated on May 1, 2005.

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CEO: Krishnan Jaishankar
Highlights Integrated all levels to enhance the strength of the organization Managed well the challenge of credit enablement for channels post merger Clocked only a modest growth of 13 percent in turnover

Ingram clocked a turnover of Rs 5,517 crore in the last year, as against the
revenue of Rs 4,879 crore in 2004-05.

The new Ingram is waiting for a big leap in the current year, with a wide
range of products and the right mix of volume and value business. A big
challenge faced by Ingram post merger was that of credit enablement. The new
entity had to address more than 12,000 channel partners in the country; nearly
4,000 more of what it was handling earlier. Ingram had to manage the credit
limit with existing partners and provide support to the new ones, while doing
justice to the vendors and their products by reaching targets and achieving
numbers in business. Finally, the company managed well with both vendors and its
partners.

HP continued to be the largest revenue grosser for Ingram, followed by Lenovo.
Besides that, Microsoft, Cisco, Epson, Lexmark and Sun were the other businesses
that grew in 2005-06. The PC consumer market was a growth area for almost all
vendors in the Ingram portfolio. It also registered a slight growth in software
business. But the company saw its revenue dropping (a marginal decline of 10
percent) with HP peripherals. Ingram also made some new tie-ups in the last year
with companies such as Philips, Red Hat, NetApp, Polycom and Sony Ericsson.
Finally, Ingram got the status of being the country's largest distributor in
the last year with a turnover of Rs 5,517 crore. Redington came second with
revenue of Rs 4,068 crore.