AKITDA lays foundation of SITCO in Kottayam

DQ Week Exclusive

All Kerala IT Dealers Association (AKITDA) has established its IT distribution company. The aim of Sell IT Company (SITCO) is to involve dealers into the direct procurement of IT products and take the benefits of bulk purchasing. At the initial stage, AKITDA has initiated the project in the three districts on a trial basis, which will be subsequently spread in other regions.

Talking to the DQ Week, Liju Raju, president of AKITDA said that the primary objective of SITCO was to address the issue of price cutting and to provide healthy profit margins to the dealers. He said that SITCO intended to maintain the hygiene in the distribution business.

“With SITCO we want to maintain a balance between price and the service support. Dealers will get the benefit of bulk purchase in the form of discount and low price and margins will be evenly distributed among all the stakeholders of the company.”

Sijo Alex, secretary of AKITDA said, “SITCO will give the bargaining powers to the dealers. At the same time it will ensure service support to the end users. The participation in the project is not mandatory for any member.”

AKITDA has complied with the legal procedures for forming the company. SITCO private limited has been registered under the Companies Act with a share capital worth Rs 2 Crore. The face value of shares has been fixed at Rs 1000 each and every member can acquire maximum 50 units.

The project has been already commenced in Kottayam, Pathanamthitta and Idukki districts on a trial basis. Kottayam district president Anil Prasad has been leading the project in the three districts. Raju said that on the basis of response in the three districts, AKITDA would spread the project in other parts of the state. The association will formally inaugurate the company in the month of September.