Ambala Computer Dealers Association (ACDA) offering open proposal for FDI Venture Capitalists (VC’s). Taking a step ahead in fight with online portal ACDA along with all distributors of Ambala city are coming with the open offer to FDI for fair trade and business in all across the country.
The VC’s are investing heavily in the online portal like Flipkart, Snapdeal, Paytm etc. the companies who are generating revenue with negative profit but more transaction revenue. Even though they are selling products on losses from the past many years but their market valuation has been increasing day by day.
Rajesh Tayal, spokesperson, ACDA said, “We want a fair business to all partners and distributors. Our point for all VC’s is, instead of investing in loss making OLS they should speak to established distributors cum retailers in all the cities of India and should buy their shareholding in the profit making venture and overnight they will have presence in PAN India in every city and everywhere in India”.
“Once they have their outlet in every neighborhood they can really drive the market as per their principal, moreover all the small partners who has a turnover of say about 2 to 4 crore will be willing to share their shareholding to these groups and these VC will get the market valuation of Rs. 2,500 Crore ( assuming Only 700 outlets) annually without investing for a long term perspective in loss making entities as all these small established partners across India as still making profits” he added.
In the world of consolidation when these partners will be given fair share of their capital and VC’s investment they will be more than happy to join the hands with biggies and will even work with them for better future prospect. They will also able to get the benefits of consolidate buying power of these VC’s thus the end user price will automatically comes down and the consumer will automatically attracted to these neighborhood outlets rather than OLS.