Intel, Tech Pac part ways

Intel has dropped Tech Pac as its distributor. As a result, Intel now has
only four distributors in the country: Redington, Ingram Micro, Nebula
Technologies and SES Technologies.

	“Business through Tech Pac was growing, but not as fast as Intel expected it to.”
Amar Babu, Intel

"Business through Tech Pac was growing but not as fast as Intel expected
it to be," points out Amar Babu, GM-Channels, Intel. The business
relationship somehow did not work out since the amount of business happened to
be a small percentage of the total business of both the parties.

K Jaishankar, CEO, Tech Pac, says that his company was a marginal player for
Intel. "For Tech Pac, Intel’s business formed a negligible percentage of
its total business," says he. However, it was not clear why the top
distributor of the country could not make a success of distributing Intel
products while it did have highest mar-ketshares for majority of the products
its distributes.

"We did make efforts to understand what it takes to become a successful
CPU distributor. We were in dialogue with Intel for a long time," confesses
Jaishankar. Tech Pac’s thinking is that it would not look seriously at a
relationship where it does not matter.

	“For Tech Pac, Intel’s business formed a negligible percentage of its total business.”
K Jaishankar, Tech Pac

Intel says that it is not looking for a replacement for Tech Pac right away.
"Unless we find a distributor who is in a position to give us
value-addition in terms of time and place, reach for high-end products, we will
not sign up a new one," says Amar.

Even though Jaishankar was at pains to explain that talks with Intel were at
a "delicate stage", Intel had no such qualms in declaring that its
relationship with Tech Pac for CPU business was over for good, perhaps mainly
because Hagemeyer India (Tech Pac’s owner) had tied up with AMD to sell its
processors.

Thus, AMD has #1 distributor from the DQCI Silver Club in its bag, while
Intel does business with #2 and #3 plus two more.

The war for the CPU pie is intensely on!

SYLVESTER LOBO