INGRAM MICRO: Inching Forward

Acting Country Head SP Rajguru Startup-Year 1996 Products & Services Distributor for APC, Borland, Cisco Systems, Emerson, HP, IBM, Intel, Lexmark, Microsoft, Network Associates, Nortel, PTC, Samsung, Seagate, Sun, Tally, Trend Micro, TVSE and Tyco Branches 35 Dealers 8,000 Address MF7, Cipet Hostel Road, Thiru-vi-ka Industrial Estate, Ekkatuthangal, Chennai Tel 22333071 Fax 22331751 Website in.ingrammicro.com

SP Rajguru Acting Country Head & VP Sales Indranil Choudhury CFO

Bolstered channel partnerships by 33% and expanded operations Samsung and HP brought in the maximum revenues, followed by Microsoft and Cisco SP Rajguru replaced NY Prasad, who moved to Singapore

Increased visibility with an expanded 36 branches Enviable network of 8,000 channel partners gives it a wide reach across the country

Weak branding for own products Poor support and service network

This distribution major managed another strong performance by clocking a
growth of 11% in what was a tough year for most distis. From an estimated Rs
1,220 crore in fiscal 2001-02, it went up to Rs 1,360 crore (DQ estimates) in
financial 2002-03. Although the 11% growth rate was much below the 31% recorded
in the previous year, it was still creditworthy–given the times it was
achieved in.

The company saw many changes in its product portfolio–and in its top
management. It added many new product lines, including HP supplies and HP Alpha
Unix business, Emerson, PTC, and Tyco. However, it dropped the handheld line,
comprising Palm and Psion. Its own product line–Vesta–was expanded to new
products like notebooks at under Rs 70,000 and commercial PCs. Vesta and Magix
together contributed just above Rs 100 crore, and this number is expected to
jump by a good 50% in the current fiscal. New products like gaming devices and
WiFi will also be launched under the Vesta brand.

Headcount went up to 360, an addition of 20 employees over the previous fiscal. At
the beginning of the new fiscal, SP Rajguru took over as "Acting Country
Head" from COO NY Prasad, who moved to Singapore. (Prasad Mamidanna, president & CEO, is also
based in Singapore.) The company also broadened its presence to 35 full-fledged branches. In addition, it appointed C&F agents in Jammu and Shimla. And from the
previous year’s 6,000 channel partners, the company jumped 33% to 8,000.

Ingram’s Samsung business–at an estimated Rs 360 crore, inclusive of
mobile phones–was the biggest grosser. HP was next at an estimated Rs 340
crore. The next two positions were taken up by Microsoft and Cisco, at Rs 120
and Rs 100 crore, respectively. IBM, Intel and TVSE contributed an estimated Rs
75 crore each, while Seagate’s contribution at Rs 60 crore was followed by
Nortel and Sun–each chipping in with Rs 20 crore.

This year, Ingram plans to strengthen its presence in the enterprise business
space, with special emphasis on the software product lines. It also plans to
extend its Web initiative, which is already in place internally, to external
partners. For Ingram Micro, 30% topline growth is envisaged.