Middle East and Africa-focused IT hardware distributor Mitsumi Distribution is entering the Indian market with a plan to invest Rs 700-1,000 crore over the next three years for infrastructure, inventory, logistics and local credit support to build business here.

The privately held company, which distributes PCs, peripherals, CPU/GPU servers, networking equipment and mobility devices, has commenced operations with offices in Mumbai, Delhi and Bengaluru, and aims to expand rapidly into smaller cities untapped by incumbent distributors.

“India presents a compelling opportunity due to its large and growing consumer base of over 1.4 billion people and a rapidly expanding middle class,” Mitsumi Group chairman and CEO Jagat Shah said. “A key opportunity lies in tier-3 and tier-4 cities…We see a clear market gap for nimble, locally focused distribution partners that can address the specific needs of smaller cities and emerging business hubs.”

The strategy is “not to compete head-on in already saturated tier-1 markets, but instead to focus on underpenetrated regions where we can add real value”, he said.

Initially, Mitsumi is setting up a logistics and inventory network covering 14 locations. The company has started with a team of more than 30 employees in India, which it expects to scale as vendor partnerships are finalised.

Founded more than 25 years ago, Mitsumi operates in more than 30 markets across the Middle East and Africa, employing 600 people and partnering with over 45 global technology brands including Dell, HP, Samsung and Toshiba.