The Top Five in the Five Million

HCL

The

undisputed Indian market leader so far. The only question is how long it can

retain its #1 position. Growth has been slow compared to industry and

competition. In 1997-98, it shipped close to one lakh PCs, which included pieces

manufactured through HCL’s alliance with HP. It reached 101,500 in 1999-00,

growing at a CAGR of only 6% during the two years. Also, HCL has not been able

to maintain its significant lead in numbers it had earlier. HCL’s PCs were 50%

more than its nearest rival but after the HCL-HP combine broke up, an aggressive

positioning by the competition has seen the gap reduce. The difference between

HCL and Compaq, the #2, was only 20,000 pieces in 1999-00; much lower than the

50,000-plus gap in 1998-99.

The strategy seems to be to move towards the higher-margin services and HCL

is concentrating on becoming an end-to-end solution provider leveraging on its

installed hardware base. Also, it seems to focus its PCs more for homes. HCL is

using such marketing tactics as road shows and carnivals across the country to

build brand share in a market increasingly dominated by MNCs. It remains to be

seen whether all this can help HCL, the #1 Indian PC company, retain its

position.

E-4/5/6, Sector XI, Noida 201301



Tel: 4555219, Fax: 4550923


Web site: www.hclinfosystems.com


Chairman and CEO: Ajai Chowdhary


Revenue (1999—00): Rs 996 crore

Compaq

Compaq

reclaimed its #2 spot in 1999-2000 from Zenith, which shipped 1,000 PCs more

than Compaq in 1998-99. Compaq saw strong growth in the home segment where,

according to our estimates, it grew by over 200%, from 7,214 in 1998-99 to

21,784 in 1999-2000. However, at the corporate desktop level, it seems that it

is yet to get the top-of-the-mind recall that HP’s Brio enjoys. Compaq plans

to address this with its Deskpro EP range of PCs. However, its clear focus seems

to be the home and this is where the company hopes to get the maximum market

share, both in value and volume terms.

Also, according to IDC, Compaq could emerge as the top player in the Indian

market–the September PC channel sales figure puts the company in the top

position. The report pegs Compaq’s market share at 7.9% with September sales

at 9,297 units. However, the company is going to face the heat from HP on the

home and corporate front and from IBM, which looks strong on the corporate

front.

92, Industrial Suburb, II Stage



Yeshawanthpur, Bangalore 560022


Tel: 3374785, Fax: 3374395


Web site: www.compaq.com


Managing director: Balu Doraiswamy


Revenue (1999—00): Rs 1,085 crore

HP

Still

recognized more as a printer company, HP has been doing a great job in the PC

market. At #3, it has been able to give "value for money" with its

low-priced Brio. It upstaged Zenith’s highly successful "MNC value at

Indian price" proposition. So successful has been the pricing that nearly a

third of HP’s PCs probably goes to the consumer market competing head on with

its own Pavilion brand, which targets homes. The Brio has been the single reason

for the plus 100% growth in HP PC numbers, more than doubling its 1999-2000

numbers to 63,000 from the earlier 25,000. In the home market, it’s trying to

replicate its international success with the Pavilion range. However, with

Compaq betting on the home segment,and with IBM getting aggressive in the

corporate segment, it will be interesting to see where HP places its bet.

Chandiwala Estate



Maa Anandmai Marg


Kalkaji


New Delhi 110019


Tel: 6826000, Fax: 6826059


Web site: www.hp.com


President: Ganesh Ayyar


Revenue (1999—00): Rs 1,137.8 crore

Zenith

Zenith’s

only value proposition–"MNC value at Indian prices"–was taken over

by HP a long time ago and this has reflected in the poor growth in Zenith’s PC

numbers. Compared to the 1998-99 growth of 52% in numbers and 34% in revenues,

Zenith grew a meager 3.6% in numbers and 5.7% in volume in 1999-00.

Zenith projected its PCs as a branded product at shades above the assembled

PC prices for the home; while it pushed its value proposition of "MNC value

at Indian prices" for the corporate. The home and corporate segments, both

key for Zenith, seem to have lost interest among buyers. This is partly due to

an aggressive strategy by HP and Compaq on the home and the low-priced MNC PC.

But a bigger problem for Zenith has been the lone brand for every user.

Zenith House



29, MIDC Central Road


Andheri (East)


Mumbai 400093


Tel: 8377300, 8366030


Fax: 8377297


Web site: www.zenith-india.com


Chairman and managing director: Raj Saraf


Revenue (1999—00): Rs 250.2 crore

Wipro

Known

more for its software division and Asim Premji, Wipro has been in the top league

for a number of years. Of course, it’s no longer an equal to HCL. More

importantly, with the phenomenal success in the software business, the question

that keeps popping up is whether Wipro can regain its earlier glory or continue

to be an important player in the PC market. In 1999-2000 Wipro did reasonably

well with sales doubling to 49,000 units from 23,800 in 1998-99 as average

realization crossed the Rs 40, 000 mark to be in the top 5 league. Wipro has

been focusing on the corporate segment more than the home segment. However in

the last one year, the company is focusing its various brands on the home

segment.

Doddakennelli, Sarjapur Road



Bangalore 560035


Tel: 8440011, Fax: 8440056


Web site: www.wipro.com


Chairman: Azim H Premji


Revenue (1999—00): Rs 2,035.7 crore