FAIITA Raises Concern Over AVITA’s Unsold Inventory Worth Crores

FAIITA Raises Concern Over AVITA’s Unsold Inventory Worth Crores

FAIITA (Federation of All India IT Association), a leading IT industry association, recently released a statement about AVITA’s unsold inventory lying with channel partners across India. The association has raised concern and intervened to resolve the issue. FAIITA has issued a letter which says, "Avita / Vaio Laptops were first introduced in India though their Importer / National Distributor M/s Vivek Traders LLP (Chennai). It was Headed in India by Seema Bhatnagar and had their office in No 405, Copia Business Suites, Tower A, 4th Floor, Jasola-110025.

I.T. Partners in India were first approached by Seema Bhatnagar to join their Distribution Network for Distribution of Avita / Vaio / Nexstgo Laptops, as some of partners knew Seema since Sony India Recording Media & Energy Division Distribution days and some of partners agreed to the proposal for Distribution of Avita / Nexstgo Laptops, in Mumbai. During that time, she told as their Parent Company was M/s Alco Holding which was located in Hong Kong Office & Alco Holding was also established in USA and is a very big OEM manufacturer for big brand. Its CEO Mr. Alex Chung along with their Technical Team all were Ex Sony & further she added that even Vaio Laptop was also produced in the same factory where Avita / Nexstgo Laptops are made us believe in their Company.

Later She also played taunt with Vivek Traders LLP and she somehow removed them from the National Distributorship & appointed Ingram Micro India Pvt Ltd as their National Distributor, now that Ingram Micro came into the National Distributorship made dealers still believe in the Brand. Once again she approached dealers through Ingram to join the Distribution through Ingram Micro India Pvt Ltd.

As Ingram Micro become National Distributor for the Avita / Vaio Laptop, they approached the dealers across the country and owned the responsibility of serving the dealers using its own goodwill. As the dealers across country had trusted relationship with Ingram they joined the business. Ingram also informed that they are original importers of product and joined as Regional Distributor for Avita / Vaio Laptops, as they felt the Ingram Micro (India) Pvt Ltd will support us for Sales / After Sales Service for Avita / Vaio Laptop. Seema Bhatnagar along with their Marketing Team also confirmed the averment made by Ingram and committed the support through Ingram for marketing and service of products during covid situation taking the advantage of shortage situation.

Avita as a brand gained market share as secondly Ingram Micro India Pvt Ltd was their ND. Over 70 Channel Partners also joined for Distribution of Avita / Vaio Laptops in India and engaged with T3 channel to create broader marketing network.

Suddenly on Jan 22 without prior information, Avita / Vaio Services Centre started closing down and that created chaos amongst the dealers and consumers. When they approached Ingram who assured them that this temporary problem and service support will start soon and also assured them but that never happened even the DOA accepted by Ingram were received by them without giving due credit to the dealer. After the service setup failed, customers started returning defective laptops to dealers leaving no option for dealers accept to take them back and stop further sale of products.

Subsequently Ms Seema Bhatnager parted ways with Avita and along with their Team launched a new Laptop Model Ultimus (Make in India) & appointed Redington India Ltd, as the National Distributor, for this new Make in India Laptop. But before Redington India Ltd could get their stocks, Seema & their team launched this Ultimus Laptop through a new Channel Partner M/s Reboot Systems who was located at Lower Parel Mumbai, its Owner Mr. Jay Kyal as she gained Mr. Jay confidence. She started to dump him most of the unsold inventory which was with Ingram Micro India Pvt Ltd. According to information, currently they are having unsold Avita / Vaio Inventory to a tune of nearly 1.5 Cr. Mr. Jay already had a medical history and always used to travel on a wheel chair, but due this to extensive unsold inventory for Avita Laptop his health conditions started to deteriorate & he passed away on 8th April 23.

As Avita inventory started to pile up in all the Regional Distributors Pan India & its Service Centre being closed, FAIITA engaged with Ingram Micro India Pvt Ltd to take back the unsold inventory, but we got a very cold response from Ingram Micro India Ltd., management team. FAIITA also had a couple of meeting with Mr. Sanjay Achawal on Zoom but until now had not got any proper solution to our unsold Avita / Vaio Laptop Inventory. It was quite surprising that Ingram who made fortunes in business with Channel back stabbed the same channel. Mr Bindra head of Ingram India even did not bothered to respond to mails and messages send to him. In an informal discussions Ingram team has conveyed that partners sell the stock and Ingram will share 25% of loss but when asked they did not give the same in writing. This approach of Ingram raises more questions about the approach of Ingram about the whole issue. 

But on the other hand Redington India Ltd took all the unsold Avita Ultimus stocks from all the partners in India & released the Credit Note for the Inventory that they took back.

Further we would like to add that most of the Channel Partners who have unsold Avita / Vaio Laptops inventory are registered with MSME Body, and their hard earned Capital is Blocked.

As per our best of knowledge the Pan India Partners are having stock of AVITA/VAIO Laptops is approximately worth of 20 CR and our request to Ingram to take back the stock. Goodwill of Ingram is now at stake and partner community is looking towards the same.

(Source: Letter shared by FAIITA)

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