Mumbai-based Value added distributor neoteric Informatics recently made a strategic agreement with component vendor Prime ABGB and has merged the operations of the latter into its existing distribution.
The new partnership is intended to grow the component distributorship in multifolds. In a first exclusive interaction with Channeltimes, Paras Shah, CEO, neoteric informatics Ltd, explained the rationale and future roadmap for its premier distribution house.
Excerpts from interview…
CT: Could you explain in detail the understanding of merger of Prime ABGB with neoteric?
Paras Shah: Prime ABGB has moved its entire business operations under neoteric and the company’s Founder Gulbirr Bhatia has joined neoteric as Director, PC Components Business Unit and Emerging Technologies.Popular brands of Prime ABGB—e-commerce portals, www.primeabgb.com and www.onlyssd.com, and its premium gaming PC brand BRAG—will continue to operate in the market under neoteric.
The existing vendor alignment of Prime ABGB will continue and as we move forward neoteric expects to sign up with many of these vendors for national distribution.
Most importantly we are excited to have Gulbirr Bhatia on-board to drive neoteric’s PC Components Business Unit. Gulbirr’s role will be that of an intrapreneur to help augment and expand our business. His experience, deep understanding of emerging technologies and strong customer insights will enable us in becoming more market relevant to both partners and vendors.
CT: How the merger would help neoteric as well as Prime ABGB to grow together?
Paras Shah: The PC component business of neoteric is a major revenue contributor. We have distribution partnerships with leading vendors such as Gigabyte, Corsair, HGST, Logitech, LITEON, ADATA, etc. Prime ABGB has strong ties with several high-end product vendors in the gaming, SSD, and prosumer technology segments.
With Prime ABGB’s expertise in high-end technology products and neoteric’s vast market reach we are confident of adding several new vendors to distribution portfolio over the next 6-12 months.
CT: Prime ABGB has been into distribution of several component vendors and having its own online portals, how these two lines of business would fit into neoteric current scheme of things
Paras Shah:The company was among the first in India to start their online portal, www.primeabgb.com, which is a popular e-commerce destination among gaming enthusiasts and technocrats. It was also the first to launch a portal, www.onlyssd.com, dedicated to solid state storage products, which today has the largest number of SSD products available in the country.
The two portals will continue to serve end-users however the fulfillment of customer orders will happen only through channels. It will be a unique e-commerce model.
CT: Could you tell us operation of Prime ABGB in India, how the merger would benefit or impact the partners of Prime ABGB?
Paras Shah: It will benefit partners of both neoteric and Prime ABGB as they will now have access to a large portfolio of products and across more locations.
CT: How neoteric going to leverage this partnership to grow its distribution business?
Paras Shah: With this strategic alliance, our aim is to significantly increase our product portfolio with new distribution partnerships in the area of gaming, IOT products, 3D printers, and solid state drives.
CT: What has been the performance of neoteric in FY 2013-14?
Paras Shah: Being a private limited company, we don’t comment on our financial numbers. Suffices to say that we have performed in keeping with the industry growth rates. With several new initiatives and partnerships underway neoteric is aiming for a major growth boost.
CT: What are the others new areas that neoteric is planning to make a foray into?
Paras Shah: On the components front, our focus will be on gaming, SSDs, IoT products, 3D printers. Over the next few months we will introduce products in every focus area through our distribution network. As for overall plans and strategy of neoteric, we are planning several new initiatives which will roll out over the next couple of months.