Known as Manchester of India, Ludhiana is a prominent commercial and industrial hub in northern region. The largest city and commercial capital of Punjab, the city hosts several industries focused on automobile, textile, hosiery, electronics and home appliances. Situated on the banks of the Sutlej River, Ludhiana has been ranked as one of the easiest cities in India for business, according to the World Bank. With rapid industrialization and a growing urban class population, Ludhiana has growth potential in the next few years. Technology adoption is on the rise and will pave the way to the growth of ICT business in the coming years.
Commercial Hub
Ludhiana offers a conducive environment to industries and business, and as a result companies have flourished here over the years. Small scale industries produce industrial auto parts, hosiery, textile, industrial equipment, electronics and household appliances. Ludhiana is best known for auto spare parts manufacturing. Spare parts used in German cars are exclusively made here. The city also produces around 60% of India’s tractor parts. Ludhiana is considered as Asia’s largest hub for bicycle manufacturing, and more than 50% of India’s bicycle production happens here. Ludhiana is one of the largest manufacturers of domestic sewing machines. The hosiery industry produces the largest share of India’s winter clothing. Several cotton and woollen clothing brands supply products in domestic and international markets.
The ICT Channel Scenario
Being a commercial and industrial hub, demand for ICT products is ever-growing in Ludhiana. It offers a growth potential for the channel business. All national distributors have a presence in Ludhiana. PC and Laptop brands have experience zones. LFR business is also growing. There are 200+ channel partners, including retailers, system integrators and regional distributors. Around 6000-6500 PCs are sold per month. Laptops and Gaming Desktops are the high-selling products, followed by networking and storage solutions. Education, manufacturing, textile and agriculture industries are the consumers of computer and IT hardware. Ludhiana hosts prestigious educational institutes like Punjab Agricultural University. Hence, there is demand from students for high-end laptops and PCs. There is also a sizable demand from businesses and commercial entities.
The Challenges
The channel business is growing in Ludhiana thanks to industrial and commercial development. However, few challenges impact the profitability of channel partners. Anjay Singh, owner of Higher End Peripherals, says, “We are a regional distributor and work with all major PC components brands. We face challenges in payment collection from unorganised partners. Also, a section of partners engages with distributors and brands directly. We have been in the business for more than 25 years. We know the ecosystem very well. We have prompt payment systems, and we offer better services. Distributors and vendors should address this issue and discourage such practices.”
The supply of refurbished PCs and components is another challenge that hampers demand for branded technology products. Kishor Pansari, Branch Head of Rashi Peripherals, says, “Branded PCs offer better performance, latest features, better security and low maintenance. Refurbished products may save some money but do not offer optimum performance. Hence, we encourage our partners to promote branded PCs to their customers.”
The Way Ahead
With the rapid industrial growth, Ludhiana offers growth potential for ICT channel business. Both brands and national distributors should focus on the seamless availability of the latest technology. Gaming is another area where high-end PC brands can forecast decent growth in the coming years. With the government’s focus on smart-city projects, the demand for surveillance and networking is expected to propel and provide additional revenue streams for each stakeholder in the channel distribution business.