“SMEs are contributing significantly to demand for components”

GD Saini

Singodia Electronics Pvt Ltd, one of the major electronic component distributors in India, has earned Rs 150 million in 2011-2012.

Its managing director, GD Saini, says that the company is now looking for some good brands to associate itself with, and is also looking for new opportunities to diversify its product portfolio. In a conversation with Electronic Baazar, GD Saini spoke about the current trends in the components market in India.

EB: What is the current demand for electronic components in India?

Although the electronic components market is growing rapidly in India, unfortunately, we don’t have many domestic manufacturing facilities. India is still heavily dependent on imports from other countries, especially China, which is not only hampering our growth in this segment but also putting a heavy burden on the foreign exchange resources of the country.

EB: Which are the verticals that are driving the growth of the components market in India?

Indian SMEs contribute significantly to this demand. The demand for components is growing in the consumer and power electronics segments such as home UPS systems, CFL lighting, solar lighting and the weighing scale market and these segments consists of a large number of SMEs.

EB: What is the business potential in the components market in India?

The components market holds immense potential if the government encourages investments and gives some incentives for components manufacturing to pick up in India. I believe Indian manufacturing companies are not even fulfilling 1 per cent of the component requirements of the domestic electronics industry, so there is a long way to go for India and great opportunities lie ahead of us.

EB: Channel distributors are focussing on being value added resellers (VARs) and providing design support to serve the buyers. Does Singodia Electronics also follow this trend?

Yes, keeping in view the trend, we are not only providing electronics manufacturing services but we also help in the design and development of components as per the requirements of the customers, through our principals and associates.

EB: What are the other trends in the Indian channel distribution industry?

The major trend we are witnessing is distributors providing value added services like the management of inventory and technical support to customers, which is not only a big challenge but also a great opportunity to cash in on.

EB: How big is your traders’ network? Do you plan to expand it in 2013?

Our trader network is selective but is spread all over India. We believe our trade associates are our channel partners and an extension of our organisation. We are certainly looking forward to expanding the most important arm of our organisation.

EB: What criteria do you follow when selecting traders?

While selecting our traders, we always look for economically sound partners with a good track record. We also look at their background and relevant experience in the field in order to establish a long term relationship with them.

EB: What are your marketing strategies in India and overseas?

We are a one-stop-shop for all the requirements of our valued customers. For the regular supply of our products, we have a system to ensure immediate deliveries. We also help our customers to minimise their inventory carrying costs.

EB: What are the major challenges you face while dealing with traders? How do you resolve them?

The most important challenge we face while dealing with our trade partners is being able to offer them competitive pricing even when there is a fluctuation in the currency. When the rupee had weakened recently, it was a formidable task for us to offer good prices to our traders but we managed to ensure them price stability and regular supplies.

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