Long drawn CMDA-HP row ends

PUNE: Nearly four months after the rowbetween Computer and Media Dealers
Association (CMDA) and Hewlett Packard India, Pune has finally lifted the ban on
HP products following long series of negotiations with the company.John Thomas,
the new president of CMDA revealed that Pune would now be part of HP’s
national program called Geographic Initiative Program, which was launched on
January 1, 2003.

Under this program, in up-country markets HP preferred partners would be
expected to pay octroi. They would then be given an additional two percent ’back-end’
incentive along with regular incentives given when targets are achieved. In Pune,
this additional incentive would take care of two percent of the three percent
octroi levied.

The two percent incentive would be paid only on wholesaler’s Invoices (Octroi
paid ) having Pune city address as billing location. The invoices with all the
local levies only would be considered by HP for the incentive. The octroi is
presently three percent. Of this, two per cent would be paid by the vendor. And
the preferred partners have agreed to pay the remaining one percent. "Since
the entire Pune channel purchases from them as they offer discounts, not usually
provided by the distributor, it would not be difficult for the channel to meet
targets," John said. Johan said that the association has already notified
its members about development.

"HP would now participate in a big way in the forthcoming ‘IT Expo’
2003 organized by CMDA in Pune from January 16 to January 20," he added.
When contacted, JT Jacob of the IPG division, HP maintained that the company had
not taken any special steps to resolve the issue. "We had initiated the
Geographic Initiative Program across the country offering additional incentives
to dealers and the Pune channel felt that this more or less met their
demands," he said. He expressed satisfaction that the issue had been
resolved amicably.

CYBER NEWS SERVICE