Redington is an Indian multinational distributor of IT products such as mobility solutions, mobility solutions and solution for managing supply chains that specialize for emerging markets. Established in 1961 it functions as a value-added reseller, purchasing products from suppliers, managing logistics, and delivering them to dealers, resellers and consumers. Redington is focused on closing gaps between technology advancements and their implementation through strategic partnerships with cutting-edge technology, as well as an in-depth knowledge of market dynamic. It boasts a vast vendor network, which includes more than 450 brands from around the world which makes it a major distributor in emerging markets that span telecom, mobility, IT cloud, as well as other industries. The network of enterprise leaders hyper-scalers, disruptors with a new approach and disruptive innovators allows the company to acquire and distribute cutting-edge technology which allows easy access to them for customers across India as well as across the globe. Are you curious about how Redington is now a major supplier of technological products, or find out more about its business model? Let’s find out the solutions.
Redington The Business Model The Essential Components
Redington is an added value distributor and supply chain solutions supplier. Its model of business focuses on indirect sales via partner channels and bulk purchasing to reduce costs and value-added services to increase scalability and build customer loyalty. The company operates in three main business divisions: IT, Mobility and Services.
IT business focuses on the distribution and sourcing of hardware and software solutions. These include laptops, computers tablets computers, servers with high-end specs, cloud infrastructure cybersecurity data analytics AR/VR, networking devices 3D printing and IoT gadgets, storage devices, telecom equipment and data center solutions.
The mobility segment consists of lifestyle items like mobile phones smartphones, mobile phones and home automation systems, as well as accessories, wearables and more. The items are manufactured by several brands, including top brands like Apple as well as Samsung.
Beyond the products, Redington provides end-to-end supply chain and technology services across all segments. Logistics and supply chain solutions include reverse logistics, warehousing and third-party logistics, as well as fulfillment of e-commerce and supply chain consultation. Technology-related services include custom IT fulfillment using Redington Ensure, after-sales support and localisation of software business process automation, and other services such as call centers.
Redington has a broad network of partners with more than 450 global brands that include Apple, IBM, Microsoft and Samsung along with over 39,500 channels partners. It allows seamless access to the latest technologies for businesses, SMBs resellers, end-users, and resellers.
The indirect model of distribution used by Reddington is backed by more than 70 sales offices and greater than seven million square feet of warehouse space and platforms such as Redington Online for online sales.
| Company | Redington Group |
| Establishment Year | 1961 |
| Founder | R. Srinivasan |
| Headquarters | Chennai, Tamil Nadu, India |
| Industry | Tech Product Distribution Supply Chain |
| Net Worth | $10 billion |
| Revenue in 2024 | $10.7 billion |
What Does Redington Earn Money?
1. Product Distribution
Redington earns about 90percent of their revenues through sourcing IT hardware and software from internationally-known brands and selling them to the channel partners or to customers. Redington makes a net income of between 5-7% of the transactions, driven by the high volume sales.
Smartphones, mobility products, accessories and wearables make up 40 to 50% of the profits produced through distribution of products. IT hardware account for 30-40%, while software networking, storage and networking products accounting for the remainder of the portion.
2. Value-Added Services
Redington offers a variety of value-added offerings, such as logistics and warehousing services, third party logistics as well as e-commerce fulfillment and after-sales services including supply chain management, automation of business processes. The revenue is generated by charges to partners and vendors in exchange for the value-added service.
The company earns about 10% of revenues through value-added services.
Subsidiaries from Redington
Redington Distribution Private Limited is an entirely owned subsidiary of the Redington Group. It is headquartered in Singapore. It imports distributes computers, hardware peripherals and networking devices throughout South Asia, including countries such as Maldives, Nepal, Sri Lanka and Bangladesh.
ProConnect Supply Chain Solutions Limited is an entirely owned part to the Redington Group. It focuses on logistics, warehouses and the management of supply chain. The company bought Warehouses of its parent organization in FY24.
Redington Gulf FZE serves as the primary subsidiary of Middle East operations. Its headquarters is in Dubai and has several affiliates across Middle Eastern nations.
Redserv Global Solutions Limited is a wholly-owned subsidiary that focuses on assistance after sale and sharing services.
Redington International Mauritius Limited is an investment and holding entity with its headquarters in Mauritius. The company is an investment holding corporation that holds 100% of the part of Redington Gulf FZE. Redington India transferred its holding in RGF to RIML in 2009.