Duplicate HP Spare Parts a Thriving Business

HP is apparently receiving negative branding for its printers division. The
unavailability of HPs spare parts is giving way to China manufactured duplicate
parts that are being used in companys printer products portfolio. The irony is
that the number of users are not even aware of the turbulent situation that has
been prevailing from a long time.

Nearly 90% of the HP spare parts market is unorganized and Mumbai is said to
be the source for Chinese spare parts in the country. This situation came to
notice when the Directorate of Revenue Intelligence (DRI) conducted a three-day
raid in HP warehouses throughout the country in September 2008. During these
raids, it was disclosed that HP was importing parts under warranty repairs from
Singapore to save duty tax, and were further selling them to repair vendor
companies.

NK Murthy, director, M-Tech Systems says, "The company has not been providing
original parts for the last two years, and as an alternative the duplicate parts
from China are used in HP branded printers, which comes for repair. The company
earlier roped in distributors like Redington as its Master Parts Resellers (MPR).
Earlier, Ingram and Redington used to provide HPs spare parts for printers
range. Due to the unavailability of HPs spares parts, there is a rise in import
from China," adds Murthy.

The gray market for HP specific spare parts is thriving in India as the local
repair companies frequently use them to facilitate quick repairs for their
customers. "The fast moving parts like Fuser 2420, 3005, 9000, 8100 are easily
available and with no competition around, the prices are not even checked," says
SC Jha, director, Care Infoserve. "HP provides spare parts to the trade-related
calls for their service centers. This has lead HP in loosing its charm and brand
image and has facilitated Samsung to get increased market share in printers,"
adds Jha.

HP, however, on its official website lists Maxtone Electronics, Nova
Integrated Services and Redington India as its authorized partners for its
printers range, which includes LaserJet, Designjet (wide-format) and Inkjet
printers. Commenting on this, Jha says, "Earlier we were told that HP would
provide spare parts for printers but the issue has not yet been resolved. We
have also sent a letter to HP Americas sometime back, for which the regional
representatives of the company approached us but the issue still remains
unresolved."

According to Redington sources, HP has recently started to bill spare parts
to them and the matter is expected to be resolved soon. "The company has the
largest channel network in India through which it offers its products and
services for consumers, SMBs and enterprises," says a HP spokesperson.

Muntazir Abbas/DQ Week

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