Changing Gear

There were two defining themes for HCLI in FY 08: while its affordable
computing strategy was more visible, perhaps more important was its added focus
on system integration.

The fact that the pure services component of its system integration revenue
increased by 43% (from Rs 316 crore to Rs 452 crore) last year speaks volumes
about the success of its strategy. HCLI already had presence in telecom, e-gov,
BFSI, and power and as far as the SI business goes, last year it set up new
practices in media and entertainment, retail, healthcare, and infrastructure.

Early FY 08, the company won the multi-crore Punjab SWAN project, along with
some other big infrastructure management projects for several ports and some of
the newly revamped airports. The acquisition of Natural Technologies
re-emphasized its SI focus in BFSI. Result: it won an MIS project from a leading
bank in India, and another for a financial inclusion pilot from a nationalized
bank.

HCLI has never presented itself as a channel-friendly company in the past but
FY 08 saw it making up for that, perhaps to stoke its SI ambitions. In the IDC-DQ
Channels Channel Satisfaction survey, HCL climbed up the ranks on most
parameters, way above even some MNCs. However, its channel relationship score
was very low. HCL also lost its exclusivity in Toshiba distribution. The same
thing happened with Nokia a year ago.

Rank-13

l Start up Year: 1996
l Products & Service: Computers,
storage systems, managed systems, infrastructure, office
automation, software and network integration l Employees: 5,901
l Address: E-4, 5, 6, Sector-11,
Noida, Uttar Pradesh l Tel:
+0120-2526518/19, 2520977 l Fax:
+0120- 2550923 l Website:

www.hclinfosystems.incom/in

size=1>Highlights

size=1>Strengths

pÂ
Pure services revenue increased by 43% from last year


p Enjoys
lucrative agency operations with high value vendors

size=1>Weaknesses

size=1>q Lost out
on exclusive Toshiba distribution tie-up size=1>

q Still needs to
make up for its lukewarm channel ties

Ajai
Chowdhry, chairman & CEO

JV
Ramamurthy, head, Operations/COO

George Paul, executive VP, Marketing

Sandeep Kanwar, head, Finance/CFO

Sanjoy Nag, head, Technology

While the year saw Nokias contribution going down, there was
growth in revenue from Apple iPods and Kodak range of products.

SI apart, products still contributed nearly 30% of the revenue with remaining
coming from distribution. Affordable computing was the buzzword as HCLI launched
the MiLeap series of HCL Leaptops, an ultra portable range of laptops that offer
mobile Internet computing and full PC functionality at a price point starting
from Rs13,990.