Redington

Redington Limited is an information technology company with a product portfolio that includes IT solutions, business process solutions, logistics as well as financial services. The company's network has expanded over 38 markets with more than 290 international brand associations and 70 sales locations. Redington was originally incorporated in 1961 but began operations in 1993 after acquiring the Indian branch of Redington Pte Limited Singapore.

The company's principal activity is wholesale distribution of machinery, equipment and supplies. It also offers solutions covering software-defined storage, fault-tolerant solutions, store visualisation, enterprise storage and hyper-converged infrastructure.

Business operations

The company began IT distribution and branch operations in western and southern India in 1993. Redington also started the distribution of HP's IT products. The next year, the company commenced distribution of IT products of Epson and Tripp and Samsung monitors. The company also put its foot in the northern Indian market. A year later, Redington started its operations in Eastern India. The company also began distribution of Compaq and Philips products.

In 1996, the firm began distribution of Intel products. The company partnered with Microsoft for distribution of software products in 1997. It made tie-ups with IBM APC and Canon, for the distribution of their products in 1998.

Eyeing a share in the market outside India, the firm set up a subsidiary Redington Gulf FZE to oversee the operation in Middle East and African markets.

In 2002, the firm began call centre operations for servicing Compaq's Presario range of products. A year later, it began distribution and servicing of Motorola mobile phones.

In 2004 Redington received investment from Synnex Mauritius Limited of the Synnex Group for a 36% stake in the company. The company acquired Redington Gulf FZE (Middle East and Africa operations).

Redington marked an entry into the consumer durable distribution space in 2005. The next year, the company took up 100% shareholding of Redington Distribution Pte Limited and Cadensworth (India) Private Limited. It signed a distribution agreement for the distribution of Apple's range of products in India. The company brought its initial public offering (IPO) and the shares were listed on BSE and NSE.

In 2008, Redington began distribution for BlackBerry. During the year, the company infused $65 million in MEA operations. Standard Chartered Private Equity took up an 11.99% stake in the company in 2011. The company teamed up with EMC for the distribution of their storage products through Cadensworth.

The next year, the company began a supply chain management business independently through a wholly owned subsidiarY, ProConnect Supply Chain Solutions Ltd.

In 2014, the company invested in LinkPLus, a leading Oracle distributor in Turkey, for an 80% stake in the firm. Redington launched its RedCloud portal during the year. As the company, completed 25 years of operation, it launched a new logo in 2018. The company transformed from a promoted-led company to board board-governed and professionally managed entity.

In 2020, the company disinvested in its wholly-owned subsidiary Ensure Support Services India. The company incorporated RedServ Global Solutions Limited – a wholly owned subsidiary for shared services — in 2022. The company shifted operations to its new corporate office in Chennai.

As of January 16, 2024, Redington Ltd's market capitalisation is over ₹14,000 crores. Redington Ltd's share price has moved up by over 150 % in the last three years.

Financial highlights

– Redington Ltd's consolidated revenue in FY23 was ₹79,377 crore, a 26.71% year-on-year growth from ₹62,644 crore in the last financial year. – The \EBITDA (earnings before interest, taxes, depreciation and amortisation) stood at ₹2,260.7 crore in FY23, up by 20.3% from ₹1,879.2, the figures recorded in the previous fiscal year. – The company reported a net profit of ₹1,439.4 crore in FY23 as against a profit of ₹11,315 crore in FY22. – Its earnings per share (EPS) grew to ₹17.82 in FY23 from ₹16.4 in the last financial year.