__p Synnex Technology International, distributor of IT products in Taiwan, has announced that it will invest US$24 million for a 36.31 percent stake in Redington Group, which comprises Redington India and Redington Mauritius. The Group is the second-largest distributor of IT products in India.
p____p This investment is a part of the company’s effort to extend its overseas marketing in India, the Middle East and Africa, a report in DigiTimes.com said.
p____p The report further stated, Synnex will make the investment through its wholly owned subsidiary Synnex Global. This is the next phase for Synnex’s efforts to beef up its overseas marketing bases, according to company president Evans Tu. In phase one, the company set up wholly owned subsidiaries in China, Hong Kong, Thailand and Australia in 1997, and invested in a joint venture in the US called Synnex Corporation (founded in 1980).
p____p Redington operates a network of 31 branches, 42 distribution centers and 39 maintenance centers in India and does business in Saudi Arabia, Qatar, Oman, Iran, United Arab Emirates, Egypt and Nigeria.
p____p The investment will enable Synnex to sell its products, including PCs and other IT goods made by its largest strategic partner, Asustek Computer, through Redingtons marketing networks. In addition to marketing, Synnex will help improve Redingtons logistics management to enhance the efficiency of its operation.
p____p Through continued expansion of its overseas market, Synnex is hoping that the revenues from overseas operations will eventually account for 90 percent of the companys consolidated revenues, the report quoted Tu as saying.
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