DQ Estimates Revenue (Rs Crore)
For the year 2016 to 2017 : 17,879
For the year 2017 to 2018: 18,700
Increase of 5%
During FY 18-19, the major event impacting the domestic ICT industry was the transition to the GST regime. Given the scale of changes and transformations required, while the overall impact is still to settle down, especially in the Enterprise and Infrastructure space, the industry has to cope up quite well. Digital disruption is certainly making its impact felt in the way the customers will buy and consume technology in the future and how the industry will conduct its business, it is still early days at the moment.
FY 18-19 was a period of consolidation for Redington and while it has done quite well in the Consumer IT space, challenges in the Enterprise & Infrastructure space and in the Mobility portfolio resulted in muted growth.
In this backdrop, during FY 18-19, Redington’s two major priorities related to execution of transformation to a Solution Oriented Distributor in the next phase of realization and to accelerate the process of fully Digitizing its internal processes and how it conducts the majority of its business. In line with that thinking, its focus, energies, and investments over the year were fully aligned with these objectives and it believe that these transformations would be key to its future growth.
If one looks at the revenues breakup, the PC’s and Tablets portfolio garnered about 35%, while Servers, Storage and Security contributed 19%. Printers and Networking contributed 12% and 14% respectively.
Redington over the years has morphed into a seamless supply chain and distribution company and enter into its 25th year of operations in India. Defining its success, so far, the company stated in its FY 18 annual report that: “Redington’s ability to quickly adapt to vastly different markets and changing business environments has seen it achieve commendable success. From a distributor of a single product in a single territory, it has transformed into a multiproduct, multi-geography business house, spreading its wings from its home base in India to the challenging markets in South Asia, Middle-East, Africa and Turkey”.
In line with changing distribution landscape and the new digital economy, the company unveiled its new logo earlier this year. Commenting on the new brand identity, Raj Shankar, the company’s MD wrote in the annual report: “The new identity carries with it the legacy of the company’s “Values” which have been painstakingly built over these years. Be it our vendors or our partners, these Values have been instrumental in building long-lasting relationships, paving the way to a legacy of continued success.”
Clearly, during FY 18, the company focussed on revamping the organization structure centered around customer experience. Company sources say that as a part of Redington’s digital transformation journey, we are planning to bring together all our systems, processes, operations and infrastructure onto a common enterprise business platform.