INGRAM MICRO: Top Gun

The biggest event for the Indian subsidiary of the $26 bn US-based was the

acquisition of the #1 Indian distributor Techpac. On a standalone basis, the

company grew 47% to touch Rs 2,250 crore.

During the end of FY 2002-03, forming of strategic group such as enterprise

& systems and software, had paid rich dividends for the company, which

contributed 12-13% to the overall turnover, and almost 30% in gross margins. The

Systems division grew by nearly 56% from Rs 385 crore in 2003-04 to Rs 599 crore

last year, thanks to the booming consumer PC business where MNC brands gained a

lot of recognition over the assembled, as prices narrowed between the two.

Revenues in software grew by a whopping 64%, the new product lines contributing

for it.

HIGHLIGHTS The Tech Pacific global acquisition vaults Ingram from #3 to #1 distributor in India Strategic initiatives such as TOPS a buy-back scheme also helped the company to grow Revenues from software jump 64% Maintained its leadership in network products Merger with Tech-Pac can have teething problems with conflicting product lines Needs to retain Ingram's aggression even after India chief 's exit l Start-up Year: 1996 l Products & Services: PCs, notebooks, servers, UPS, inverters, gaming kits l Branches: 37 l Dealers: 9,000 l Address: MF7, Cipet Hostel Road, Thiruvika Industrial Estate, Ekkatuthangal, Chennai-600097 l Tel: 22333071 l Fax: 223331751 l Website: http://ingrammicro.com

In networking, the company garnered Rs 214 crore, while it made Rs 200

crore in FY 2002-03. The peripherals business also registered a modest growth

from Rs 550 crore to Rs 641 crore in 2004-05. Services was a new opportunity

area for the company where it made Rs 406 crore.

Vesta computer sales grew by 405, while HP and Samsung brands emerged as

clear winners contributing 30%. The company gave up its notebook business mainly

because of frequent fall in prices and cut-throat competition triggered by

multi-national brands. It registered a decent growth with other product and

component ranges including servers, UPS and business card readers. Other

strategic initiatives, such as TOPS-a buy-back scheme-also helped the company to

grow.

Ingram Micro grew not only in revenues, but also in size over the last year

by acquiring another leading distribution company-Tech Pacific. The combined

entity will stand at Rs 4,000 crore, and could enter into the Top 5 club (first

IT distribution company to get into the space, in the league of giants such as

TCS, Wipro and Infosys) next year. Together, the distribution giant now boasts

of having products and services from over 55 leading IT vendors, and more than

12,000 resellers in its network. Krishnan Jaishankar, the CEO of Tech Pacific

India, takes over the reigns as managing director of the merged entity. SP

Rajguru, who was handling the operations at Ingram Micro India as COO, was

appointed senior director (Sales) in the new entity. Rajguru has recently

announced his resignation from Ingram Micro.