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HCL Infosystems: Calling The Shots
 

 

 
Monday, September 20, 2004

 

 Ajai Chowdhry, Chairman & CEO

PRODUCTS: Toshiba, Sun, EMC, Nokia, StorageTek, Red Hat, Citrix, SAP, Veritas and Microsoft
Employees: 2,354
PARTNERS: 1,000
BRANCHES: 260
ADDRESS: E-4, 5&6, Sector-11, Noida 201301
TEL: 0120-2520977

STRENGTHS
l Ability to react fast and compete aggressively 
l Created strategically focused business units-HCL for IT products and HCL Infinet for communications and OA
WEAKNESS
l Not too aggressive with Toshiba's distribution
l IT distribution taking a backseat

2003-04 saw HCL Infosystems shifting its focus from IT to telecom, a decision it did not regret, as Nokia handset sales brought in Rs 2,468 crore in revenues. It also paved the way for this distribution company to find its place as the leader of the Silver Club.

For the first time since the inception of the Silver Club, a company has displaced Tech Pacific from the top slot of the list. So a round of applause for HCL Infosystems is definitely in order.

HCL's agency revenues touch Rs 2,795 crore in 2003-04, a whopping 73% growth over the previous fiscal's Rs 1,611 crore. The crowning glory for this growth run is the company's mobile handset distribution. This business grew by 188% over 2002-03 and is the fastest growing brand for the company. 

To sharpen its handsets sales focus, HCL transferred its OA (office automation) division to HCL Infinet, its 100% (networking) subsidiary. With this, the company now has two focused business units-HCL, which will concentrate on IT products (and related services), and HCL Infinet, which will focus on the rapidly growing communications and OA areas.

Last year also saw HCL Infosystems hiving off its services business, excluding hardware services, to HCL Technologies. The company also was very aggressive in its channel activities and introduced various schemes and promotions for its partners.  

HCL Infosystems received major orders for its Toshiba notebooks from Infosys, Thermax and Indian Institute of Technology, among others. In the imaging and communications business, orders came in from HDFC, Lord Krishna Bank, Deccan Aviation, Tamil Nadu Police, Reliance Petro, Lafarge, Chennai Police, Essar, DHL, Hutch and Oil and Natural Gas Corporation.

The distributor, along with Toshiba, also got into the retail segment, by opening Toshiba World showroom to showcase the vendor's mobile computing products. The first outlet was opened in New Delhi, followed by Bangalore. This retail push follows the amalgamation of Toshiba's two divisions - Digital Media Company and Consumer Durables - and involves the establishment of six flagship Toshiba World outlets in the top metros of the country. Toshiba presently sells around 10,000 notebooks a year in India through HCL, 60 % of which are picked up by corporate segment.

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