Confed unites channel against distis

CHENNAI , INDIA: The alleged high-handed behavior of a few national distributors has got dealers in Tamil Nadu contemplating a ban on these entities. The issue goes back to two separate instances that took place earlier this year, involving SES and Redington and Ingram Micro.

In both cases the channel felt that there was a lack of cooperation from these distis in resolving issues with them. “Many Confed members, through their own efforts, have stopped dealing with SES with effect today for an indefinite period. We will be taking a decision on Redington and Ingram Micro by end of today. In fact many dealers in Coimbatore and other nearby regions stopped dealing with SES a long time ago after they saw how unprofessional a company it was,” stated PN Prasad, president, Confed-ITA.

In the first instance, SES had sent a legal notice to a few channel partners saying they had unpaid bills. But partners refused to pay up saying that the bills were forged and it was a case of forgery masterminded by a sales executive of SES Technologies. “In an e-mail we requested SES to drop the case against all the dealers. But the distributor served legal action against us. If an association can't take up issues of their members and if they get blackmailed then it does not speak much for the industry,” stated Prasad.

The other instance involved HP Care Packs. GV Ramanan, Customer Relationship Manager, Rams alleged that the products he had bought carried a three-year warranty but Ingram and Redington refused to confirm the same. Finally, Rams filed a legal suit against the two distis.

“Ramanan made many attempts to correspond with Redington, Ingram Micro and HP about the issue but they did not respond. It was only after he filed a legal suit against the distis that the three-year warranty was brought back on the products. But now these distis have banned Rams. This sort of behavior is a threat to all companies. It sends out the message that we cannot question any rules of distis and vendors. So we are collecting all documents to take up this case against these distis,” exclaimed Prasad.

Confed has already communicated to a number of channel partners and associations across the country and received tremendous support from this community. “We have heard from many associations across India which has been very encouraging. In fact a few have even suggested that we announce a one day ban on Redington and Ingram and get SES to drop the cases they have filed against channel partners,” commented Prasad.

Expressing the full support of channel partners in Rajasthan, Deepak Sharda, Secretary, Rajasthan Computer Traders' Association stated, “Definitely we will support Confed since this is a genuine case. It's one case that has been highlighted, but there are so many others that impact the general interest of the channel community that are not being addressed. So this is a good start and we stand by Confed.” A similar instance had taken place in Rajasthan in which SES had filed a case against a partner.

Sharda shared that they are in regular touch with Confed and were waiting for communication on what steps to be taken. “Confed will inform us and we will act accordingly. If they call for a boycott also we are with them,” he added.

Many associations, while encouraging Confed in its endeavors, are also giving sound advice. “Please go through all paper work and legal responsibilities and then settle the score. We are with Confed for any sort of support required from me and our association,” stated Rohit Tendon, Secretary Bareilly Computer Dealers' Welfare Association.

Naresh Lalwani, President, Computers and Media Dealers Association(CMDA), Pune commented, “If it is a genuine cause we will stand by it. We have been informed of what has happened but we will take a call depending on a number factors like the details of the case. And if it is in the general interest of the community then we will comply with what Confed plans.”

In Bengaluru, K Kiran Holla of Hollasons Trading Company expressed, “These are black mailing tricks by distis. We should certainly join hands and protest against it.”

Speaking on behalf of SES Technologies, Chaitali, Executive—Legal Department said, “We will not step back from taking legal action against those companies and will recover the money.”

When contacted, PS Neogi, President—IT Division, Redington said, “Since the partner has sent a legal notice, we are not in a position to comment.”