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Redington moves beyond iPhones: Non-Apple smartphone segment grows 39%

Promoter Harrow Investment Holding Ltd exited the company by selling its shares on July 5 and July 6

Gireesh Babu  |  Chennai 

iPhone
iPhone

(India), a supply chain solutions provider for information technology (IT) and non-products and a major distributor of products in the country, has said that growth in the non-distribution business has started contributing to its mobility business significantly.

Harrow Investment Holding Ltd, the promoter of the company, has exited from the company by selling its shares on July 5 and 6 through the open market. The company is also in the process of diversifying into new businesses such as solar energy and health & medical equipment.

The non-products business, which includes the mobility services, has seen a considerable pickup in the share of its business in the past. Close to 30 per cent of the company's revenue, which was at Rs 15,480 crore on a standalone basis in 2016-17, has been from the mobility and services portfolios, said the company.

The company has delivered a strong shift towards the non-or mobility segment, with the segment's contribution growing from 18 per cent of the total business in FY2011 to 27 per cent of the total business in FY2017, said a report by Axis Direct in June 2017.

The key growth drivers in the core distribution business of the company include increased enterprise spending on infrastructure, the government's spending, increasing PC and internet penetration, additions of new brands in the segments, among others, added.

In the mobility vertical, the company continued to derive value through the business, both in India and the overseas markets, said Raj Shankar, managing director of (India) Ltd while addressing shareholders in the company's annual report.

"However, the growth in the non-segment was 39 per cent, a clear indication that the other brands in our portfolio have started to contribute quite significantly to growth. Overall, the momentum in this segment looks promising," he added.

The company, which started to develop a portfolio of non-products in 2006, had tied up with then market leader BlackBerry as a national distributor for both retail and channel distribution of 'unlocked' BlackBerry phones at a time when they were only sold in the 'locked' form through telecom operators.

Later, tied up with for the pan-India distribution of iPhones. According to analyst reports, the company started distribution in 2012. Even though appointed a couple of other distributors in the country, continues to be a major distributor of products, said company officials earlier. Besides Apple, the company has distribution tie-ups with Google Pixel, Samsung, Xiaomi, and also has a distribution tie up for Apple's lifestyle products. The company also bagged a distribution agreement for iPhones in Saudi Arabia during FY 17, in addition to UAE and Africa.

The company has also evaluated opportunities in businesses such as 3D printing, solar energy, and health & medical equipment. These are still at a nascent stage but the company is confident that these businesses will become interesting once they achieve economies of scale, says Shankar.

Share prices fluctuate

The company's share prices saw fluctuation on Friday as its promoters exited the company by selling 8.2 per cent of the total shares of the company. The shares were acquired by Norwegian Government Pension Fund, Reliance Mutual Fund and others.

While Harrow Investment Holding held 8.2 per cent shares in the company as of March 2017, 29.8 per cent of the shares were held by foreign institutional investors and foreign portfolio investors, 23.6 per cent by Synnex Mauritius Ltd, 15.4 per cent by Standard Chartered Private Equity, and 14.2 per cent by Mutual Funds.

Share prices, which opened at Rs 137.90 on Friday compared to Rs 135.75 at the previous close, went up to around Rs 138.2 per share and declined to Rs 134 per share in the forenoon before recovering to Rs 136.95 per share at 11.30 a m.

First Published: Fri, July 07 2017. 14:05 IST
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