eSys reveals Iraq channel plans

Global components distribution giant eSys will use Gitex as the springboard for developing its network of resellers to serve the Iraqi IT market.

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By  Stuart Wilson Published  September 14, 2004

Global components distribution giant eSys will use Gitex as the springboard for developing its network of resellers to serve the Iraqi IT market. The company plans to shortlist potential partners at the trade show and has set itself a target of having a fully functional Iraq distribution channel in place by the end of the year. “Iraq is set to be the largest market for IT components in the Middle East region,” said Pavan Gupta, general manager at eSys Middle East. “The strict embargo on the inflow of IT technology in the pre-war era has created a market scenario, where cutting-edge technologies are a necessity.” Replicating its wider Middle East model, eSys plans to recruit and develop a limited number of strategic partners capable of serving the wider reseller base that exists in Iraq. As well as pushing its components offering to the small local assembly operations that currently exist in Iraq, eSys will also look to line up projects for its new contract assembly plant at Jebel Ali to supply large tenders. “At eSys, we are convinced that there is a big market in Iraq for our multimedia PCs both in the IT infrastructure reconstruction projects and in the open market for our partners who wish to brand their own PC,” said Gupta. “This conviction is based on the enormous interest the eSys manufacturing facility has generated, even before it is fully operational. Iraq already has a thriving assembled PC market. But the advantage of the eSys multi-media PC is the quality assurance that comes with the active support of our partners including Seagate, Maxtor, Western Digital, Hynix and eRam.” eSys already has 11 resellers serving Iraq according to Gupta with only four of these actually located in Iraq. Of the remaining seven, three are located in the UAE, two are in Jordan, with one apiece in Lebanon and Kuwait. The current channel model of distribution operations pushing product in from surrounding countries is slowly making way for the appointment of genuine in-country partners. There is an established channel of distributors, dealers and retailers already operating in Iraq. Louay Alkhatib, managing partner at Iraq distribution specialist Orient Technology, explained the existing landscape: “In the North of Iraq we sell to ten key resellers that are in turn supplying about 50 resellers. In Baghdad we sell to some 20 companies that are serving the 200 retailers and resellers operating in the city. Sinaa Street is the main hub but Baghdad also has several IT plazas. There are between 20 and 25 retailers and resellers in Basra as well.”

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