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TOP
STORIES |
Thursday, January 03, 2002
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Ingram
undertakes cost-cutting steps to stay on growth track
Indranil
Chakraborty in Kolkata
Ingram Micro, the $32 billion IT products distribution company,
has taken various cost cutting measures to maintain the bottomline
growth for its Indian operation, Ingram Micro India Ltd.
In the January-December (calendar 2001) fiscal, while the company
expects to maintain the industry growth, Mr CG Kamath, vice-president,
marketing told The Financial Express that profit
was under pressure.
Last year, Ingram Micro’s international operation went through
various cost curtailment measures like merging of operations
and reduction of manpower.
According to Kamath, to tide over the current slump, the company
is resorting to various cost cutting measures like lower hikes,
less spending on infrastructure, cut down in investment in new
product lines and restructuring of workforce through redeployment
and lower numbers of recruitment. At present, Ingram has 400
personnel on its payroll.
In India, Ingram has product lines of all the major IT companies
which include both MNCs and local brands.
Said Mr Kamath, “Our top line growth will be at par with the
industry average but our bottomline growth will be affected
by the current slowdown. This year, we will have a flat growth.
We don’t see any improvement in our bottomline growth in the
next two quarters.”
According to the industry estimates, last year (calendar 2000)
Ingram Micro (India) Ltd had a turnover of Rs 930 crore with
a whopping growth rate of 91 per cent compared to 1999. In the
current financial year, the growth will come down to around
30 per cent.
Although industry source pointed out that one of the areas of
cost reduction will be voluntary pay cuts for senior officials,
Mr Kamath denied it saying that at present the company was not
considering that option. |
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