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Follow UsCEO: Harsh Chitale www.hclinfosystems.in
Unending Battle: Fraught with the challenges to rediscover its growth trajectory, HCL Infosystems struggled and sought revenues from new initiatives in FY13. Visible from fall in the topline revenues to the tune of 8% over last year, it can be easily gauged how arduous its journey has been to establish its new businesses to compensate the void of about `1,000 crore created by its telecom distribution, which suffered a huge setback as Nokia business shrunk.
Multi-pronged Approach: Working on its Aspire model to resuscitate a new life into its business, HCL management realigned the business worth and charted out future roadmap in learning, services, distribution and hardware and solutions business. HCL Learning is a recently incubated business and in early stages of lifecycle maturity while the services business is put on aggressive growth plans, given the opportunity in the managed services space. Its distribution business and hardware and solutions business are still not out of the woods. It created subsidiaries such as Digilife, HCPL, SI, learning, and care.
Multi-brand Distribution: The company has gone ahead with its multi-brand distribution strategy and added a number of brands to its portfolio. Even today, the larger chunk of its business (more than 50%) comes from distribution. It aims at making distribution business `10,000 crore in the coming years. The company's distribution business portfolio expanded as it signed many leading OEMs across IT, consumer electronics, lifestyle products, and office automation as principals. Doing a little unconventional, it partnered with Dell for distribution of wide array of Dell's enterprise products.
Sick Child: HCL's PC business which is now reduced to single digits continues to be in ICU, as the global demand coupled with inherent issues leave a little space to grow.
Last year, there were even rumors of it being sold to Lenovo. The company has created it a separate entity so that it does not clash with its distribution business. Maybe this is the reason, it has been able to bring Dell to its distribution portfolio.
Notable Wins: UIDAI awarded the company with one of the largest IT contracts for managed service provider. It also bagged deals on defense, ePDS, etc. However, it played a cautionary stance because of the payment issues related to government projects. It bagged some financial inclusion projects from banks such as the Central Bank of India, PNB, Dena Bank, Sarv UP Gramin Bank, etc. It had notable customer wins in the healthcare space and also got a number of projects in the middle east.