Some Lost, But Most Won

While the old timers dominated DQ Channels Silver Club for 2006-07, it was
heartening to see the presence of nine new players in the distribution and
solution providing categories

For eight year, DQ Channels has been compiled a list of the top 25
distributors and solution providers (SP) of the country for the Silver Club.
Over the years we have seen a transformation of distributors from being mere
fulfillment agents to offering a complete plethora of solutions. We have also
witnessed smaller solution providers gain momentum as they executed complex
projects with finesse gained from experience. Here we present those whose
revenues deter­mine their place on the marquee.

To put things into perspective, the Silver Club is compiled from revenue
figures gleaned from various players in the distribution and solution-providing
spectrum. Most of the regulars already knew the procedure while over time we
sent out the forms to newer players on the horizon.

The Silver Club forms were also carried within the DQ Channels magazine, so
that any company that felt it merited a place in the Club could send across
their details. These forms specifically asked for agency revenues-revenues
accrued from the sale of third party products-from distributors, discounting
revenues from mobile handsets.

Movement in distis

This year's Silver Club saw a lot of movement amongst the existing players
as well as the inclusion of nine new com­panies, as well as exclusions.

Jupiter International moved out of the Club with a negative growth of 39
percent, a result of the company's decision to discontinue selling Seagate. The
company that registered a major drop in its revenues was Sogo Computers whose
turnover was slashed by 121 percent, on account of its failure in the retail
segment. Sogo also slipped from #12 position to #25, just about managing to stay
in the Club.

Pacific Infotech moved from #15 to #17 and it is estimated that even its
revenues dropped by four percent. HCL slipped down from #4 to #6, probably owing
to the fact that Nokia has started distribution of its products, and Nokia
contri­buted 70 percent to HCL's overall revenue.

Priya Group, which has been going through a very rough patch for the past few
years, not only continued to grow, but also made an upward climb in the Club
from #16 to #13.

Jalan Infotech was one of the fastest climbers from #22 to #16, a good six
notches up. Compage Computers too moved up five rungs.

Supreme Technologies was the biggest faller and was out of the Silver Club.
Positioned at #23 last year, this fiscal it slipped to #34 and became part of
the Next 25 Club (see page 40). Megabyte, which was a borderline member of the
Silver Club last year at #25, firmly ensconced itself in the Club at #21.

What was notable though was that only the distributors posted a negative
growth in the Silver Club, while the solution providers mostly achieved
double-digit growth. This underlines our belief that solution providing is the
way to healthy bottomlines.

SPs have a better going

Network Solutions, which had been the forerunner in this section of the
Silver Club, was omitted from the list because it is now part of the IBM Group
and not an independent SP. Netsol's ouster was Accel's gain at it hugged the
numero uno position.

Movements were galore even within this list, with Allied dropping from its #5
position to the #8 rank. Precision moved up from #6 to #3, as did Team Computers
from #9 to #4. Two companies that covered a lot of ground were Sai, which was
also the fastest mover from #15 to #7, and Valuepoint, from #13 to #6.
Progressive moved from #19 to #12 while Targus made itself comfortable at #16
from its erstwhile position at #23.

Apara dropped from #11 to #15, but the company promises to make up for it
this fiscal and has several plans underfoot. Future Businesstech found itself
out of the Silver Club, dropping from its #7 position to #27. OA Compserve
ceased to exist as it merged with three other companies to re-emerge as Silicon
Integrix. Omnitech, Ashtech and Lauren, which were always in the Next 25 Club,
finally made their debut in the Silver Club at #18, #21 and #25, respectively.

The Silver Club saw a reflection of the quick shifts in the business world.
The highest growth was 45 percent, but most of the companies registered a decent
double-digit growth, well above the industry average.