Spectrum Group responds to Comguard exit rumours
Group CEO allays ‘runaway’ fears and assures vendor and reseller partners the group is still solid and operational
Ajay Singh Chauhan, group CEO at Spectrum Group, the holding company for Comguard, F1 Infotech, Psilog and Spectrum Training, has said rumours circulating in the regional channel that he has fled the market after owing suppliers, Dubai-based banks and vendor partners millions of dollars through subsidiary Comgaurd are untrue and damaging to the group's overall business.
Chauhan said contrary to the gossips, he had travelled to India three weeks ago after being diagnosed with a heart condition in Dubai. "I decided to seek a second medical opinion given the seriousness of the finding and made the trip to India, where I had been hospitalised for further tests to be done in order to make certain the earlier diagnosis," he said. "The tests done in India found nothing wrong with my heart and I am back in Dubai working as usual."
Chauhan added that he has been compelled to respond and dispel the rumours because if this is not responded to, the damage on the group, reputation on the Comguard brand and the vendor partners the company represents would be irreversible.
"The local channel being a fragile market thought my three week absence from Dubai implied that I had become the latest runaway statistic when in fact, the Spectrum Group continued to operate during this time with all employees reporting for work normally," he stated. "I don't know the source of the gossip, but what those who started these rumours forgot is that the offices we now occupy in Dubai's JLT Free Zone are ours so if I was to exit the Dubai market or regional channel, I would plan better."
He said while the Dubai IT channel doesn't lack for reseller businesses exiting the local scene, the damage on Comguard's reputation and the group's entire operations as a result of this rumour mill has been felt. "Fortunately, we have spoken to all our vendor partners, suppliers, creditors, local banks, and have their backing," he reiterated. "It was important to meet all parties and to assure them that what is owed will be paid."
Chauhan pointed out that over the last two years, the Spectrum Group has made investments but some of those ventures haven't panned out the way the company anticipated. "I would be dishonest if I said the current business climate is booming for it's not," he said. "In the same manner, I will be lying if I claimed that as a distribution group, we haven't been affected by some of the recent reseller runaways that happened in the local IT channel."
He pointed out that there are several factors that have contributed to the current prevailing market conditions in the regional IT industry not least the sharp drop in oil prices over the last 12 months, cuts in corporate IT budgets and spending, prolonged payment cycles, deferred IT projects and regional instability in some countries in the Middle East.
Looking ahead, Chauhan said the group would streamline its operations to ensure each business division is profitable.