Redington Gulf FZE

CEO: Raj Shankar

Tags: Channel Middle East Power List 2010EgyptKuwaitRedington GulfSaudi ArabiaUnited Arab Emirates
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Redington Gulf FZE CEO: Raj Shankar
By  Jonas Published  March 28, 2010 Channel Middle East Logo

Contact: +971 4 359 0555
Website: www.redingtongulf.com
Headcount: 400
Active Accounts: 3,520
Regional Offices: Egypt, Kenya, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, Tanzania, UAE, Uganda
Key Brands: Acer, Cisco, Dell, HP, Samsung
Ownership: Redington Gulf is a subsidiary of Bombay-listed Redington (India) Limited
2009 Sales:
US$1.19bn
2008 Sales: US$1.13bn (Verified)

What measures have you taken to ensure your company remains competitive?

When the economic challenges came to the fore we said we would take care of five things and we called it the ‘CC’ approach - cut costs, control credit, customer care, cautious capital and collect cash. In terms of ‘cautious capital’, the single most important performance parameter in our business is return on working capital and we continuously raised that capital wherever possible with enough funding, bank lines and facilities with different institutions. You may be surprised to know that we probably used no more than 60% of our total bank lines at any point in time because you never know which bank could just collapse or suddenly stop giving credit.

What are your main strategic plans when it comes to developing the business in 2010?

We will continue to add brands to our portfolio and, more importantly, grow the value added distribution business. That did reasonably well for us last year in spite of the challenges during 2009 and the fact that the corporate sector was the most impacted in my opinion. We’ll also make our automated distribution centre operational this year and that will be a clear differentiator. Considering we have about 29 brands and several thousand SKUs across so many locations it is important to have an efficient logistics centre. Finally, we will continue to expand into more markets in Africa, which for us is the next growth engine.

Company focus

Its top line growth might have slowed last year but Redington is still the only distributor in the Middle East and Affrica region to cross the US$1bn revenue mark due to its extensive geographic presence and relationships with all of the largest international IT hardware providers. Its African business also continues to come on in leaps and bounds – last year it contributed around US$250m to its MEA revenues and we wouldn’t bet against that figure increasing even further in the future.

Channel Middle East Verdict

Some might have expected Redington to bow to the pressures of a dwindling market, but several factors ensured it maintained its scale. The first was the addition of new brands, notably Dell, to its portfolio, which helped it offset the extra competition it gained in the HP space. Redington also expanded the work it did in key geographies such as Egypt and picked up the pace in Saudi Arabia, especially in the printing and supplies arena where ASPs generally saw more stability than the PC market.

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