Confed-ITA’s “CON COM Limited” to compete with OLS

The apex body of all the IT associations in TN and Pondicherry is contemplating to start its Distribution Company

DQ Week Exclusive

Taking a strong stand against the alleged unfair trade practices of E Commerce giants, the Confederation of IT Associations in Tamil Nadu and Pondicherry (Confed-ITA) has proposed the idea of starting a Distribution Company. The apex body of all the IT associations has proposed the idea to promote direct import from the manufactures and facilitate local distribution in the region.

In the meeting with the presidents and secretaries of the parent IT associations held recently, Confed-ITA president Senthil Kumar M proposed the idea of a distribution company. Highlighting the importance of united action against the various disparities in the channel business and biggest threat from online trade, Senthil Kumar said, “If we promote our own company we can succeed against the online marketplace.”

During the meeting, the Confed-ITA executive committee discussed about the formation of the proposed distribution house that intends to provide a platform to the members and give an opportunity of fair business. It is learnt that the Confederation is planning to set up a Private Limited company. The proposed “CON COM Limited” will be owned by the Confed-ITA members and the presidents of the parent associations will be the board of directors of the company.

 “The shareholding of the company is restricted to the members and the board of directors will be the presidents of the parent associations”, said Pratheesh Mathew, Joint Secretary of Confed-ITA.

Mathew said that the face value of the share will be Rs 10 and each member can hold maximum 100 shares. Currently, the Confed-ITA has around 1500 members in Tamil Nadu and Pondicherry region.  He said that the parent associations applauded the idea of a distribution house and extended their support to the Confederation.

On the query that whether the proposed “CON COM Limited” was direct competition to the existing regional distributors, Mathew said that Confed-ITA was committed to safeguard the interest of its members and to protect them from the aggressive online business practices which were adversely impacting the offline channel ecosystem.

“Our biggest enemy is E Commerce and we have vowed to fight with the external forces. We will compete with online retailers with our products”, Mathew said.

During the initial stages, Confed-ITA is planning to start the procurement of IT peripherals and the products will be distributed by the local sales chain at a standard price across the region. Mathew said that the members could earn better margins with uniform sales policy and also it would enhance their buying power. Confed-ITA will take up the discussion further in the first executive committee meeting scheduled during the second week of July.

“Our initial aim is to provide a level playing field to our members. We have got set up and back end strength and we are heading towards bringing the idea into reality”, Mathew concluded.