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Annuals

Services Saviour

author-image
DQI Bureau
New Update

Four years back, HCL Infosystem started on its journey to develop a strong
system integration arm. In FY 09, with more than 16% of its revenues coming
from SI, it seems the company has been on the right track. Even as HCLI closed
its SI orderbook with excess of Rs 1,300 crore, the pure services part of the
business grew by more than 40% to reach Rs 644 crore. With the Nokia reselling
and own products businesses, both taking a hit, the companys overall revenues
declined. However as Top20 excludes the Nokia business, HCLI shows a healthy
growth reinforcing the importance of services.

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The BFSI segment showed maximum activity: HCL acquired NTPL, a co-operative
banking software vendor, formed a tie-up with Nautilus Hyosung of Korea to
provide multi-function ATMs and inaugurated a Center of Excellence for BFSI
software in Jaipur. In telecom, the key deal was inked with BSNL (worth Rs 240
crore), while in government HCLI bagged three municipal corporations including
the ones in Kolkata and Kolhapur. It also partnered Echelon to introduce energy
metering solutions thereby foraying into power & utility.


RANK

9


HCL Infosystems

CyberMedia Research
DQ Estimates
Ajai Chowdhry, chairman &
CEO
JV Ramamurthy, COO

George Paul, executive
VP, marketing

Sandeep Kanwar, CFO

Sanjoy Nag, head,
technology
s
Strengths
  • Stronghold in the government
    space, security business will only enhance it
  •  Services revenue is
    displaying a constant growth trend
t

Weaknesses
  • Still very low market share
    (11-!3%) in the PC/Laptop market
  • Fast losing ground with
    Nokia
 FACTSHEET
l Start-up Year: 1976 l Products &
Services Computers, storage systems, managed systems, infrastructure, office
automation, software and network integration l Employees: 6077 l Address:
E-4, 5, 6, Sector-11, Noida, Uttar Pradesh 201301

l Tel: 01202526518/19, 2520977 l Fax: 01202550923 l Website:
www.hclinfosystems.in
Highlights
  • Bagged a contract from GoI
    to implement IT infrastructure for pan-African e-network
  • Equipped the Delhi Police
    and began operations in central police control room
  • Kickstarted HCL premier
    league program
  • Began the Green Bag campaign
    for e-waste recycling

Last but not the least, taking into account the terror threat facing the
country, HCLI entered the physical security space and launched Safe State, a
100% subsidiary, to offer SI solutions around security and surveillance. This
opened up the opportunity for HCLI to bag key government and defense
projects.While services rode high, the products business remained relatively
flat. Its not that there were no new launches. HCLI introduced their Leaptop
series, and started offering lifetime telephonic support to Leaptop customers.
Other launches during the year included mobile POS solutions and high-speed
Infiniti challenger series workstations. To reinforce itself as a service
oriented company, HCLI launched its round the clock service center, called HCL
Touch. By year end, there were 505 touch centers to cover more than 4,000
towns.

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It was the reselling business that went South. The revenues from the Nokia
business took a hit with OND being the most damaging quarter. Nokias share came
down to 35% of overall revenues. To somehow offset the losses, HCLI ramped up
its Apple and Kodak businesses, becoming the largest distributer of Apple
products in the country. DQ

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