P S Neogi, Joint COO, Redington India shares insights into the company’s strategies for future growth and its increased focus on the cloud services business
As a leading end-to-end supply chain solutions provider, Redington built its business on very strong ethical and commercial fundamentals which has not only helped it to consistently exceed the industry growth rate, but has also enabled to firmly establish it as the ‘partner of choice’ with most of its vendors and business partners.
With its corporate office in Chennai, it has 48 sales locations across India. In addition, through its subsidiaries both in India and overseas, Redington has 81 sales offices, 147 warehouses and 77 own service centers and 266 partner centers. A team comprising of over 1500 highly skilled and committed professionals helps the company deliver its products and services to every corner of the country. A compounded annual growth rate of 52 percent over the past 23 years has enabled Redington generate a revenue of over ` 35,476.33 crores during fiscal 2015 – 16, underlining the very strong foundation and prudent practices on which the company’s business practices have been built.
Key business strategies
The company’s strategy for future growth is divided into three distinct verticals:
- Core Business: This constitutes the traditional IT distribution business. While consolidating and strengthening its presence and offerings in the traditional distribution space, Redington aims to continue developing capabilities and skills as a Value-Added Distributor, moving up the value chain by offering pre-sales consulting, solutioning and installation services to partners and vendors for their customers.
- “Redington has singled out diversification as one of the key growth strategy, considering its distribution competency as well as the infrastructure built up over time. It is evaluating distribution opportunities in diverse verticals such as Health & Medical Equipment and Solar Energy,” says Neogi.
- Services: In line with the changes taking place in the co-system, the company is in the process of transforming itself into a ‘services organization’ and going forward, a significant portion of the business will be led by services such as Supply Chain Solution Services, Support Services, Cloud Services, 3D Printing services and High-end Printing Solution Services.
“We have committed significant investments in these areas, towards building up infrastructure, skills and resources, which would transform it into a leading services oriented organization, on the back of a strong distribution business base. We aim to deliver increasing value to our business partners both, vendors and its channel partners,” adds Neogi.
Redington has undertaken significant investments over the past two years towards building its capabilities as a distributor and services provider for cloud products and solutions. With strong engagements in the cloud space with the big 4 in the cloud business – Amazon Web Services (AWS), Microsoft, IBM and Oracle, the company aims to offer Cloud Consulting, Migration, Support and Managed Cloud Services to its channels partners, who, in turn can leverage Redington’s offerings and capabilities in engaging with their own customers increasingly looking for suitable cloud solutions for their workloads.
Moreover, the company has launched a state-of-the-art Unified Digital Cloud Business Platform, which is integrated across multiple cloud technology vendors, products and cloud services. “This essential, self-service platform offers your company’s partners and customers a seamless interface for selecting and ordering products and services from a catalogue, while allowing a choice of monthly / quarterly / annual billing as per individual consumption patterns,” highlights Neogi.
Digital Printing and 3D Printing
Redington has been an early mover in this space. Printing technology providers like HP have developed products and solutions to address the ‘print on-demand’ requirements of a rapidly growing class of customers in this digital age. The company partners with HP-Indigo to offer best-in-class digital printing solutions and provides great customer experience through its CoE for digital printing technology – a one of its kind facility in the country.
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