Redington is an Indian multinational distributor of IT products, mobility solutions and supply chain management solutions, specialising in emerging markets. Founded in the year 1961, the company functions as a value-added distributor, procuring products from vendors, managing logistics and delivering to resellers, dealers and end-users. Redington focuses on bridging the gap between technological innovations and their adoption through strategic partnerships, cutting-edge technology and a deep understanding of market dynamics. It has an extensive vendor network comprising of more than 450 international brands, positioning it as a key distributor in emerging markets across IT, mobility, telecom, cloud and other sectors. This network of enterprise leaders, hyper-scalers and innovative disruptors allow the company to source and distribute cutting-edge products, leading to easy accessibility to the same for consumers in India and abroad. Do want to learn about how Redington has become a leading distributor of technology products or what is its business model? Let’s discover the answers.
Redington Business Model: Key Components
Redington operates as a value-added distributor and supply chain solutions provider. Its business model puts emphasis on indirect sales through channel partners, bulk procurement for cost-efficiency and value-added services to drive scalability and customer loyalty. The company has three major business segments: IT, Mobility and Services.
IT business is concerned with the sourcing and distribution of both hardware products and software solutions. These include PCs, laptops, tablet computers, high-end servers, cloud infrastructure, cybersecurity, data analytics, AR/VR, networking equipment, 3D printing, IoT devices, telecom equipment, storage devices and data centre solutions.
Mobility segment comprises of lifestyle products like mobile handsets, smartphones, home automation, wearable, accessories and more. The products are sourced from multiple brands, including premium ones like Apple and Samsung.
Beyond products, Redington provides end-to-end supply chain and technological services across segments. Logistics and supply chain services include warehousing, reverse logistics, third-party logistics, e-commerce fulfilment and supply chain consulting. Technological services include custom IT fulfillment through Redington Ensure, after-sales support, localisation of software, business process automation and ancillary services like call centres.
Redington has a vast ecosystem, comprising of partnerships with over 450 global brands, including Apple, IBM, Microsoft and Samsung, and more than 39,500 channel partners. It enables seamless access to emerging tech for enterprises, SMBs, resellers and end-users.
Reddington’s indirect distribution model is supported by over 70 sales offices, more than 7 million square feet of warehousing and platforms like 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 |
How Does Redington Makes Money?
1. Product Distribution
Redington earns around 90% of its revenue by sourcing IT hardware, software and mobility products from international brands and selling the same to channel partners or end-users. The company makes a gross argin of around 5-7% on the transactions, driven by high volume sales.
Mobility products like smartphones, wearables and accessories account for 40-50% of the revenue generated through product distribution. IT hardware make up 30-40%, with software, networking and storage solutions accounting for the remaining percentage.
2. Value-Added Services
Redington provides a number of value-added services, including warehousing, third-party logistics, e-commerce fulfilment, after-sales services, supply chain management and business process automation. Revenue is generated through fees charged to vendors and partners for these value-added services.
The company earns around 10% of its revenue from value-added services.
Subsidiaries of Redington
Redington Distribution Private Limited is a wholly-owned subsidiary of Redington Group. It is based in Singapore. The company imports and sells hardware peripherals, computers and networking products in South Asia, including countries like Maldives, Nepal, Sri Lanka and Bangladesh.
ProConnect Supply Chain Solutions Limited is a 100% subsidiary of the Redington Group. It is focused on logistics, warehousing and supply chain management. The company acquired warehouses from its parent entity in FY24.
Redington Gulf FZE is the core subsidiary for Middle East operations. It is headquartered in Dubai and itself has a number of subsidiaries across Middle Eastern nations.
Redserv Global Solutions Limited is a wholly-owned subsidiary concerned with after-sales support and shared services.
Redington International Mauritius Limited is a holding and investment entity based in Mauritius. It is a holding company which owns 100% stake in Redington Gulf FZE. Redington India transferred its holding in RGF to RIML in the year 2009.
