Intel adopts sub-distribution strategy in India

NEW DELHI

JULY 21, 2006

In its bid to
further cement its ties with the channel community, global chip manufacturer
Intel has ventured towards a sub-distribution strategy. This is the first time
that the company has done this and as part of this distribution associate
program, Intel has appointed 12 - 'Distribution Associates' in order to expand
its business prospects in the Indian region.

Seemingly content
channel community has taken this move quite positively. "This is a good
move by Intel. Now we will see a lot more activity from small resellers and more
importantly different schemes of Intel will now be passed on to these people
easily. So, all in all, for the company its overall reach will increase and for
us it will mean more profitability," informed, Bharat Bhushan, Director,
Aryan Technologies, one of the sub-distributors being announced from New Delhi.

According to
Intel's official spokesperson, Intel has launched this program in order to
achieve far broader coverage in the market. "By creating this program we
have formalized a business model that existed and was functional in the market.
The Distribution associates have been serving the channel in terms of supplying
to broader channel dealers. We see this program formalizing the relationship. It
is our Endeavor to reach as broad set of our channel customers and at the same
time the Authorized Distributors will have the benefit from the additional reach
that Distribution Associates provide," the official spokesperson added.

Terming this as a
move to bind more closely with the channel community, Ravinder Jain from New
Delhi based PL Computers said that this initiative will further increase the
market reach for Intel as well as give more opportunities to the channel
community in small places.

"There is a
global shift that is happening and as part of this, Intel is focusing a lot on
the channel community. This is a good sign and eventually we are going to
benefit form this move. We will surely increase our presence to more number of
cities and this will generate more business for Intel. Very soon we will be
going to places like Jaipur, Ludhiana and Dehradun," Jain added.

Speaking about a
significant increase in Intel's maturity within the market, Harish Puri, CEO at
Computer Empire said that the with this initiative, the maturity level for
global chipmaker has increased to a new high now.

"This will
certain give Intel a big advantage in terms of dealing with the competition.
More and more small resellers will feel comfortable doing Intel now and as a
sub-distributor we will also be investing more in terms of putting in place the
infrastructure and manpower in order to address this new opportunity," he
added.

With the channel
community breaking into a jig, experts close to the industry feel that, this
move will surely bring in more opportunity for the channel community as well as
increase the strength of vendor-channel bond.

"We all are
quite happy about this initiative. Earlier, with an only national distributor
approach - it was very difficult for small resellers to push Intel, especially
because the company has so many products and offerings. Now things will become a
lot easier. This will surely increase the company's marketshare in this region.
I am quite sure that now competition coming from companies like AMD will now
have a tough time. As part of this, we would be looking at investing in terms of
manpower as well as infrastructure," explained, Vinay Dugar, MD at Kolkota
based Supreme Technologies. 

Even thought,
there were no comments being offered from official corners at Intel at the time
of filing this report. Winning more channel hearts across the region, this
initiative is seen by many as a positive way to involve the channel community in
a more proactive manner. 

INTEL'S
DISTRIBUTION ASSOCIATE PROGRAM PARTNERS