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8 | Redington India: Eventful Year
Last fiscal saw a big IPO, a CEO exit, and business re-alignment along SBUs
Saturday, July 21, 2007
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Redington entered the capital market with an IPO in Jan 07, to raise Rs 150 crore: the issue was oversubscribed 43 times. Redingtons was the second big IPO in the channel space in the last two years, after Tulip.

But a setback was the exit of its veteran CEO, Jitendra Kulkarni, who had put in more than a decade at Redington; he left to start his own business.

Redington continued to pursue its strategy to get into higher-value businesses. For instance, its services arm, Cadenceworth, took charge of global headsets major Plantronics new India support center in Delhi.

The second half of the fiscal saw Redington re-structuring its distribution business into two divisions: IT and non-IT. While the IT division catered to its mainline IT distribution business, the non-IT division focused on products on digital lifestyle, digital publishing, consumer durables, and telecom. With this restructuring, the IT business is addressed through six SBUs and non IT through three SBUs.
l Start-up Year: 1993 l Product & Services: PC distribution, servers, peripherals, consumables, networking equipment and components, consumer durables, and digital lifestyle products l Branches: 37 l Dealers: 7,000 plus l Address: SPL Guindy House, 95, Mount Road, Chennai: 600032 l Tel: 52243535 l Fax: 22352790 l Website: www.redingtonindia.com 

Highlights

Entered the capital market with its IPO in Jan 07, to raise Rs 150 crore
 Re-structured its business
 Forayed into gaming console market with Xbox distribution
 Consumer PCs and enterprise market drove growth

Strengths

p Good balance between volume and value products
p Focused SBUs that run as profit centers
p Diversified portfolio catering to consumer, enterprise, SOHO, and SMB

Weaknesses

q Cannot sustain margins in volume products

PS Neogi president,
IT Division

 EH Kasturi Rangan president, Digital & Consumer Products Division

JK Senapati, head, Peripherals
Anand Chakravarthy, head, Networking
K Dinesan, head, Systems
SV Krishnan, CFO
Clynton Almeida, CIO

Redington saw good demand for its enterprise products and solutions in large corporates and government; some of the growth drivers being the accelerated demand for notebooks and rapid displacement of CRT monitors with LCDs and for MFD printers. DQ

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