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Dell Perturbed By Parallel Imports

Biswajit.HD

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Dell India has cautioned its partners against parallel imports, asserting that products sold in India through such imports will not be eligible for warranty.

Coming from Sanjay Yadav, Dell India's Director, Distribution, the email, a copy of which is with CRN, lists 11 partners among those who regularly indulge in parallel imports: Champion Computers, Momentum Technologies, Link World, ProDot Computers, Venktron Digital Systems, Topmark Technologies, Geeyess Imports and Exports, Shiltron Digital Systems, Peegee Sales, E Life, and P Gee Sales Corporation.

According to channel sources, this is only a partial list and there are another 20-odd companies who are regular parallel importers, especially from markets in the Far East, Russia and North America.

Citing the practice of parallel imports as “totally unacceptable,” the email from Dell reads: “Please note that warranty support by Dell is accorded only to those products that are purchased through Dell’s authorized channel or those that are transferred in accordance with Dell’s policies and procedures. Any products that are purchased in violation of the above will not be eligible for warranty support by Dell India. These products will also not be eligible for Dell Gainz Program and Dell Empower Program.”

Parallel imports are nothing new in the IT channel business. However, partners allege that vendors are doing little to address the root cause: disparity in pricing across the globe.

“If one wants to see the wide disparity between the prices in India and other international markets, all one needs to do is visit the Dell US website, and configure the same product in dollars. The US$ price then needs to be multiplied by 57, which is what he will pay in India if he were to import the product, including dollar exchange rate and local taxes. In 90 percent cases, you would see that products imported from Dell US website are at least 15 cheaper compared to India prices,” explains Sudhir Sankar, CEO of IBS Technologies, Bengaluru.

A check by CRN found that, a Dell T110 server sells on Dell's US website at $379 which amounts to Rs 21,600 when converted at Rs 57 per dollar which includes freight and local taxes. In India the same product is billed by the distributor to the reseller at a price of Rs 33,000.

PN Prasad, Advisor, Confed-ITA, agrees: “There seems to be markups for prices of MNC products sold in India. This is why parallel imports exist.”

Dell's email advises partners to contact the company's area sales managers in case of doubts. Partners can also get the details on the origin and warranty of a product by punching its service tag number on Dell's website.


source : crn
 
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