We give a lot of importance to domain expertise

Speaking about the company's distribution pattern and market challenges,
Bhalla also throws light on how an SI could partner with NEC

Tell us about your distribution network

We carry out the distribution of our products and solutions at three levels
that consists of volume sales through our channel partners; sales through our
project partners; and solution selling through large system integrators.

Why do you think that NEC India has an advantage over its competitors? How
does NEC work?

Our products conform to highest international quality standards and are
known for its reliability, durability and technical superiority. NEC is the only
end-to-end IT and networking company that helps customers meet all their needs.
We are uniquely positioned as a one-stop-shop for all IT and networking
requirements of a company.

Whenever there are large volumes involved, we work closely with SIs. We have
slowly but steadily increased our partner base from two partners we now have
five strategic alliances. We rely on our partners' entrenched presence in the
country to take our solutions to the customer.

What are the pre-requisites for an SI to partner with you?

We believe that besides having critical mass, partners should also have
domain knowledge. We restrict ourselves to 10-15 partners and give a lot of
importance to domain expertise and have a vertical centric approach while
getting into strategic alliances. The strength of a partner in a particular
vertical is in line with our vertical centric solutions.

What are your strategic plans to penetrate into tier-2 and 3 cities?

As far as distribution is concerned, we plan to increase our depth and reach
by working closely with our current partners who can enhance our presence in
smaller towns. Our partners are essentially our extension and through their
network we aim to strengthen our position and take our value proposition to our
customers in B and C-class cities. For instance, with Neoteric as our channel
partner, we are catering to a number of such tier-2 and tier-3 cities in the
country. Neoteric has a network of 46 branches across India through which, we
are able to reach out to tier 2 towns and cities.

Do you offer educational and product training programs to your partners?

We periodically conduct workshops every quarter or coincide with product
launches to educate our team about product details and specifications. We also
follow the 'train the trainer' model wherein NEC product experts train the
nominated personnel for distribution.

What are the major challenges in the Indian market and how are you
responding to them?

India is a price-sensitive and value-conscious market. Keeping this in mind,
we closely work with our counterparts in Japan to develop products and solutions
that can meet the requirements of our customers in India and also are
cost-effective in nature.

What is your marketshare in India? What are your revenue targets for FY
2011?

We are amongst the top three players in the premium range of projectors. We
are also competing with key telephony systems. In APAC we have attained a
leadership position in the enterprise telephony space and we hope to replicate
the same in India. We have witnessed a significant growth of 200 percent last
year and are looking forward to another great year. Our partner ecosystem has
not only played an instrumental role in bringing about growth but also ensures
optimal and mutual growth in the future.

Muntazir Abbas

muntazira@cybermedia.co.in