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As the world continues to witness one of the worst economic slowdowns till
date, enterprises across the globe are gearing up in anticipation of the worst.
With predictions doing the rounds that the worst of the slowdown might come in
mid-June this year, companies are now on their way to strategize their business
in a more concrete manner. While some companies are taking the policy of
lay-offs, some are resorting to pay-cuts and some are in the process of
delimiting their business by putting a hold on key projects in the country,
aggressive companies are now taking up the policy of reengineering their entire
business process.
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Samsung India Reengineered
It is with this perspective, that Samsung India is reengineering its IT
business model, aiming to grow at 25% in coming FY 10. With the exit of Sanjay
Sharma, as VP, IT, Samsung India, the company was quick to appoint Gurpreet Brar
as his replacement and restructure its IT business model setting an aggressive
target for its monitor and printer divisions. Accrediting the move to the aim of
emerging as a solution provider rather than a peripheral manufacturer, the
company has been drastic in its approach in organizing its business into two
verticals; namely volume and printer business. It is in this respect, that the
company has now shuffled its higher management structure with Gurpreet Brar
being appointed as GM, volume sales and Uday Bhatt taking charge as the GM,
printer business. Also, B2B transactions for the complete IT division
henceforward, will be taken care of by Bhatt. Again, for the logistical part and
supply-chain, Ranjit Yadav has taken charge as the director of IT with an
additional function of supervising over the volume and printer business heads.
Commenting on the companys efforts in reengineering its policy, Yadav says,
Restructuring is a part of the companys efforts to position itself as an IT
solutions provider rather than a mere peripheral company. We are doing so not
only in terms of our products and offerings but also in terms of strengthening
the internal orientation structure, building the team as well as enhancing the
customer interface.
Supplies Going for a Toss
However, amidst all the change, the company has been hit with a shortage of
LCD monitors and ink cartridges in some parts of India. Dealers across Ranchi
along with the eastern and southern up-country regions have been complaining of
shortage of Samsung LCDs in their stocks and LG filling in the
vacuum. Even metros like Kolkata and Chennai have been hit hard by the ongoing
shortage. Blaming Samsungs distribution policy across India for the ongoing
shortage, Lalit Kothari of Sweta Computers, Hyderabad complained, There is an
acute shortage of Samsung LCD monitors here. Demand is high in the market, but
Samsung is not able to generate enough supply to meet the requirement. Also, in
Kolkata, dealers are complaining about a similar shortage.
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| Restructuring is a part of the companys
efforts to position itself as an IT solutions provider rather than a mere
peripheral company
Ranjit Yadav, director IT, Samsung India |
Samsungs Take
When questioned about the apparent scenario, Brar brushed aside the
allegations saying, There is no issue regarding a shortage in supply of Samsung
LCD monitors across India to my knowledge. Its all rumors and we are witnessing
a steady market growth, sources in the company in parts of western India
confirmed the crisis in its printer division.
Defending Samsung, regarding delay in cartridge shipment in a recent issue in
Mumbai, Bhat says, There was a delayed shipment in February which had created a
temporary supply constraint. But knowing the consumers sensitivity to
cartridges, we made some emergency movement of stocks and rectified the
situation immediately.
In Q3 FY 08, Samsung launched its notebook and desktop rangeR, Q and X
series, with a strategy to market the range through LFRs and micro-retailers
across the country. Also, the company will soon be adding more products to its
portfolio and increase its presence across the cities by increasing the
micro-retail base. It is in this process, that the company is eyeing a lucrative
25% increase in its business for FY 10. Presently, Samsung has a well organised
base of 330 Star partners and 3,500 SIs to run its monitor business. Also, on
the printer front, Samsung has recently appointed Ingram Micro besides Reliance
Industries and Neoteric as its national distributors to strengthen its supplies
to the channel community.
LG Taking the Lead?
Despite the slowdown, the demand has gradually increased overtime and with
the shortage of Samsung LCD supplies, LG has eaten into the formers market
share considerably. Also, sources in Ingram Micro said that the issue of
shortage of Samsung LCD monitors is going on for the past three months
particularly in the eastern up-country.
Signaling a deliberative move from Samsungs end regarding the LCD shortage,
Yadav says, In January, we registered a good sell out for our LCD monitors
based on our SI schemes. We also consciously managed the channel stocks to
reduce their risk and ensure healthy profitability given the market conditions.
With our LCD monitors showing good sales over the past couple of months, we have
eased up the stocks from March onwards.
Avishek Rakshit/DQ Channels
maildqindia@cybermedia.co.in Page(s) 1
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