The Government sector, which is spending large sums of money in e-governance project and procuring information technology products, is turning out to be another major area of focus for the Chennai-based Redington India Ltd.

Infrastructure investment in IT products by Central and State government to achieve e-governance has resulted in huge requirements of IT products in the government sector. Redington has partnered with large national system integrators for projects in 2010-11.

e-governance project

For instance, a major e-governance project is towards Accelerated Power Development and Reforms Programme. This constitutes investments to modernise all State electricity boards to enable them to accurately measure customer usage and distribution loss of electricity produced and transmitted. The total project cost in the distribution addressable space is expected to be around Rs 800 crore of which Redington has positioned itself to partner in at least 40 per cent of this requirement.

The Rs 4,000-crore Unique Identification project, which will biometrically enrol the entire population of India, is another project in which Redington is involved. The company has partnered with the US-based Cogent Solution for distribution of the equipment across the country, said a company official. “Any touching point for IT requirement in any sector, we will be there,” he said.

According to Redington's 2010-11 annual report, the core equipment required for the project is the biometric solution comprising the fingerprint capturing device and the Iris Scan device. The total requirement of such devices for the project is estimated to be around 80,000 sets that will be distributed by Redington, which is in the business of end-to-end supply chain management of IT and non-IT products.

Tier-3 and 4 cities

To tap the growing demand for IT products in tier-3 and tier-4 cities, Redington has divided its market focus in to two segments. India 1 will comprise the top-10 territories that continue to generate over 70 per cent of the company's revenue while India 2 will be of remaining territories that are growing at a rate which is much faster than India 1.

The simultaneous launch of the iPad 2 from Apple in India by Redington along with markets in Singapore and Hong Kong and similarly the launch of XBOX Kinect from Microsoft, as also the PlayBook from RIM, “make us believe that we are preferred partner for brand owners for their global launches. Redington's strategy of focussing on the consumer segment of technology products has yielded very good results,” Mr R. Srinivasan, Managing Director, Redington India, said in his message to the company's shareholders.

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