MITDA stages dharna against MNC retailers

Chennai

August 13th, 2007

In a big to protest against the entry of multinational companies (MNC) into
the local retail market, Kozhikode-based Malabar IT Dealers Association (MITDA)
took part in a dharna organized by the Kerala Vyapari Vyavasayi Ekopana Samit in
Kerala. The two parties have submitted a memorandum to the Mayor of Kozhikode
asking the government not to provide license to MNCs. "We are against the
double standards of the state government, who promised that necessary steps
would be taken to prevent the mushrooming of MNCs in the market, but on the
other hand is granting license to those MNCs to set-up their showrooms,"
said a provoked Vinod Kumar, President, MITDA. "In our memorandum we have
urged the government not to provide any license to MNCs, as it will hamper the
lives of many small and medium retailers," added Kumar.

The event happened on the heels of channel partners in Kerala boycotting
Redington, who was going direct to customers and getting into the AMC (annual
monthly contract) arena. "There has been a drop in sales in the market for
the past two years and there are complaints against big players like Redington
and Ingram Micro who are entering the market directly. This has vastly affected
the trade," Kumar added.

Around 5,000 members belonging to both IT and non-IT sectors participated in
the dharna to express their dissatisfaction over the current trade situation in
Kerala.

All Kerala Computer Manufacturers and Dealers Association (AKCMADA), however,
did not participate in the march. P K Harikrishnan, President, AKCMADA said,
"This march was organized in Kozhikode and the Cochin traders were not in a
position to attend it." He declined to comment further on the issue of MNCs
entry into the retail market, saying that it would lead to unnecessary hype. But
he promised full support to MITDA.

Speaking on the issue, Anthony Philip, CEO, Computer City said, "MNCs
should stop the practice of entering into the market directly, as it will lead
to the serious down fall of the business of retailers and vendors. We are united
in this issue and we won't let them take over our domain."

Sudheer Nair, CEO, ATD Automations said, "We have taken part in this
protest to save the small vendors, as they are the ones who get crushed by MNCs.
When an AMC worth Rs one lakh is given for Rs 50,000 then what kind of quality
of service do you expect from them? These tempting methods are being used only
to gain an entry into the market. I feel that similar protests should be started
across the country to check further movements of MNCs in the retail
market."

So what's the road ahead? Kumar opined, "On one hand, the panchayats
must stop giving license to MNCs. That's why we have moved to the Mayor. If
anybody wants to challenge us on the basis of quality and services, they can,
but not by waging a price war. We traders are united and seek the government's
support. We are confident of achieving it and this issue would be sorted out
soon, and we traders will have an edge over the MNCs.

When The DQ Week tried contacting officials from Redington India, they
declined to comment on the issue.