Company Facts Presentation onHCL Infosystems

History• In 1975, Shiv Nadar, Arjun

Malhotra, Subhash Arora, Badam Kishore Kumar, T.V Bharadwaj and Arun Kumar H jointly started a company named Microcomp Limited.

• The venture was focused on designing and manufacturing of scientific calculators, it provided its founders money to start a company that focused on manufacturing computers.

• Hindustan Computers Limited was set up in Aug. 11, 1976.

History

About HCL

• The company name "HCL" used to stand for "Hindustan Computer Limited" but now HCL is the only one name that the company goes by.

• HCL is a global technology and IT Enterprise that operates in 31 countries. Its headquarters is in Noida, India.

Vision and Mission

• Vision– “A global corporation enriching lives and enabling

business transformation for our customers, with leadership in chosen technologies and markets. Be the first choice for employees and partners, with commitment to sustainability.”

• Mission– “We enable business transformation and enrichment of

lives by delivering sustainable world class technology products, solutions and services in our chosen markets thereby creating superior shareholder value.”

Founder and Chairman

• The Founder and Chairman of HCL and Shiv Nadar Foundation.

• Member of the Executive Board of the Indian School of Business (ISB), Hyderabad.

• Padma Bhushan, in year 2008, by Government of India - for his contribution to IT industry

• Was awarded the 2013 BNP Paribas Grand Prize for Individual Philanthropy on October 10th, 2013 – for his unparalleled efforts in philanthropy. Dr. Shiv Nadar

Growth History1976

• Hindustan Computers Limited (HCL) is Born.

1978

• HCL successfully ships in-house designed Micro-computer at the same time as Apple.

1983

• HCL Indigenously developed microprocessor architecture, at the same time as global IT peers.

1988

• HCL introduces fine grained, Multiprocessor Unix – 3 years ahead of “Sun” and “HP”.

1990

• Data Quest marks HCL No.1 amongst top 10 computer giants.

1991

• HCL – Hewlett Packward JV Develops multi-processor Unix for HP and heralds HCL into contract R&D.

1994

• Distribution alliances with Ericsson Switches and Nokia Cell Phones.• HCL sets up core group to define software development methodologies

1997

• HCL’s R&D spun – off as HCL Technologies – mark advent in software services

1999

• Initial Public Offering made by HCL Technologies Ltd.

2002

• Software business of HCL infosystems and HCL Technologies were merged.

2003

• HCL becomes the first company to cross the 100,000 unit milestone in Indian Desktop PC market.

2005

• JV with NEC Japan• Launch of HCL PC for India, a fully functional PC priced at Rs. 9,990/-

2006

• HCL Infosystems ties up with Apple for iPod distribution.• Nokia Corporation and HCL Infosystems announce a long term distribution strategy

2007

• HCL Infosystems Breaks the one terabyte storage barrier in computers by launching India’s first ‘one terabyte’ personal computer

Growth History

Growth History

2008

• JAN: HCL unveils next generation, ultra portable, sub Rs. 14,000/- laptops for the first time in India.

• April: HCL recognized the Britain's top employer.

• Oct: Wins 2008 Optimas award for innovation.• HCL completes acquisition of AXON Group plc,

the largest acquisition in the Tech space by an Indian company.

2009• NOKIA Corporation announces to setup a Joint

Venture with HCL to sell mobile value added services directly to consumers in India.

• HCL – BSNL to work together on National Broadband Penetration Program.

2011 • Ajay Chowdhry conferred with the Prestigious Padma Bhushan .

Financials

Total Revenues - $ 6.2 BnEBITDA - $ 670 MnEmployees - 93,000

HCL Infosystems

Indian Market Focus

Hardware, System Integration, Networking Solutions, Managed ISP Services, Homeland Security & ICT Distribution

HCL Technologies

Global Market Focus

Product Engineering & R&D, Enterprise & Custom Applications, Enterprise Transformation Services, Infrastructure Management & BPO Services

Enterprise Revenue Growth

Global Presence - Operations spanning 31 countries

Delivery Facilities - USA, UK, Finland, Poland, Puerto Rico, Brazil, China, Malaysia, Singapore, Australia, Czech and India

India Presence - Offices in 170 cities,500 points of presence reaching 4,000 towns

Distribution Network - 93,000 outlets in over 9,000 towns

Overview

HCL Infosystems Ltd.

Mr. Ajai ChowdhryNon-Executive Chairman and Founder of HCL Infosystems.

Mr. Harsh Chitale Present CEO and Whole Time

Director

Executive Team – HCL InfosystemsHarsh Chitale

CEO & Whole Time Director

J V RamamurthyPresident & Chief Operating Officer

Sandeep KanwarChief Financial Officer

Rothin Bhattacharyya Executive V.P.,

Marketing, Strategy & Business Development

Gautam AdvaniGlobal Head - Mobility

Business

Princy BhatnagarVice President, Head-Consumer Computing

Vivek PunekarChief Human Resources

Officer

Business Lines• Hardware and Solutions Business

– IT solutions and Services– Computing Business– Mobility Business– Middle East Business (HCL Infosystems MEA)

• Services Business– Infrastructure Management Services– Enterprise Application Services– Infrastructure solutions Business– HCL care

• Learning Business– HCL Learning Business

• Distribution Business – Digilife Distribution and Marketing Services

Products

HCL ME Sync 1.0 (U3) Tablet

Rs. 5199

HCL MyEdu Tab (X1) - K12 With Class 12 Course Content Tablet Rs. 9999

Me Champ tabletRs. 7,999

Price Range: Rs. 22,565 to 41,990

ME LaptopsRs. 20000 to 51000

Computing & Peripherals

• Desktops• Laptops• Servers• Thin Clients• Kiosks• Scanners• Interactive boards• Projectors• Plasma screens• MFP/MFD*• Digital Duplicators• POS

Networking & Communication • Switches• Wi-Fi A.Ps• Routers, cabling• LL Modems• BB/ISDN Modems• VOIP Phones• DSL CPEs• EPABX + Phones• IP PBX & KTS• Soft Switches• Audio Conf.• Video Conf.• Mobiles• Fax

Security & Surveillance

• Access Control• Smart card • Biometrics• Body Scanners• Bomb Detection &

Disposal Solution (BDDS)

• Conventional Baggage Scanners

• Explosive Detectors• Imaging Devices

(CCTV Cameras)• Under Vehicle

Surveillance System (UVSS)

Power & Consumables

• UPS• Generator• Cabling• Earthing• Batteries• Toner • Stationery

ATMs

• Full Function ATM• Cash Dispenser• CD with finger-

print Biometric and associated software.

• CD with UL 291 (Business Hours Safe)

• SIS Services• Rural ATM• BNA

IT Infrastructure & Application Services Facilities Management

Services & Offerings

*MFP/MFD – Multi Function Printer/Device

Innovations in Hardware

VOICE ENABLEDTOUCH SCREEN KIOSKS FOR NREGAPROJECTS

KIOSKS FOR CHEQUE DEPOSIT, PASSBOOK PRINTING, INFO & NON CASH TRANSACTIONS

HCLS HHT

HCLs BANK DATA CENTRE IN A BOX

Financial Highlights

Market Share

• Laptop PC: • Tablets:

AWARDS:• Bagged the prestigious Golden Peacock Eco Innovation Award 2013 for eNBA project during

the 15th World Congress on Environment Management.• Won eINDIA Public Sector Enterprises Award 2013 for the project eProcurement by Indian

Railways. HCL was honored for automating the tendering process of Indian Railways which reduced the procurement cycle time of material from 23 days to instantaneous .

• Awarded PC Quest Best IT Implementations of the Year 2013 under the category Project with Maximum Social Impact for Financial Inclusion project of Bank of Baroda. The project aims at providing easy access to affordable financial services to those who are deprived of it so far thereby bringing the unbanked and under banked villages into the formal financial stream.

• Bagged “Corporate - Best Government to Citizens (G2C) Initiative of the Year” award at the e-Maharashtra Summit 2013. HCL Infosystems was awarded the honor for implementing turnkey ICT solutions in design, supply, installation, automation, integration, and subsequent maintenance of India’s first state-of-the-art Border Check Post (BCP) project undertaken by the Maharashtra Government.

• Bagged ‘Partner of the Year Award’ for the Asia Pacific & Japan region as part of CA Technologies Partner for Impact Awards, held at the Annual User Conference, CA World '13 in Las Vegas. HCL Infosystems was honored for its commitment and expertise in taking CA Technologies solutions portfolio to market, and its efforts in driving new contracts and business opportunities.

Awards

• Bagged the prestigious Shiksha Ratan Award at the State Education Summit 2013 for Best Smart Class Service Provider for its flagship product DigiSchool.

• HCL Digischool wins ‘Best ICT Enabled Content for K 12 Education’ at National Education Award presented by Star News.

• HCL My EduTab wins “Best tablet providers in Education” award at World Education Awards 2012.

• In 2012, bagged Mee Seva Award for Excellence in Delivery from the Government of Andhra Pradesh.

CSR initiatives • HCL Infosystems Limited partnered with National Skill Development Corporation

(NSDC) to provide skills to youth, aiming at enhancing their employability.

• VidyaGyan – A landmark educational initiative for meritorious rural underprivileged children, completely free

• Plant a tree initiative – one tree per client visit (with every client coming to India, a tree is planted)

• Extensive tie-ups with NGOs, women forums, social service communities, health institutions, blind children institutions

• One of the first companies to have a comprehensive environment management program, HCL is the first company in the country to be ISO14001 compliant.

• First company in India to have a comprehensive policy on Waste of Electrical & Electronic Equipment (WEEE) European Union (2002/96/EC) Directive

• According to environmental organization Greenpeace 29% of HCL products are currently free of toxic vinyl plastic (PVC) and brominated flame retardants (BFRs). In March 2010, HCL launched its first notebook entirely free of PVC and BFRs.

Alliances & Partnerships

Competitors• Laptops & PC:

– DELL – IBM – LENOVO – HP-COMPAQ – ACER – SAHARA – INTEX– SONY

• Tablets:– MICROMAX– APPLE– SAMSUNG– KARBONN

Competitors

• OFFICE AUTOMATION DIVISION:– CANON– RICOH– SHARP– SAMSUNG– PANASONIC

Human Resources• Ranked among Top 5 Employer 2012 by IDC – Dataquest.• HCL has over 93,000 employees at present.• In February 2005, Vineet Nayar, CEO, HCL Technologies announced a

radical new philosophy, “Employee First, Customer Second” (EFCS).• Recruitment Process:

– Application– Shortlisting of Profiles– Technical Interview– HR Interview– Offer

• Training & Certification: – HCL Career Development Centers– Pan India Centers with 12000 + students creating hardware , software and

networking professionals for the last 30 years

SWOT Analysis

Strengths• One Point solution provider.• Enough Financial Resources for deploying

any amount of hardware and Human Resources.

• Pan India Presence for executing onsite projects in any part of the India.

• Ability to understand customers business and offer right technology Excellent service & support infrastructure

• Fast paced and flexible work culture.

Weakness

• No proper marketing channels and strategies

• After sales services are not customers satisfactory

• Poor customer relationship • Less promotional campaigns

SWOT Analysis

Opportunities•Expanding disposable income of people •A large number of Untapped SMBs are realizing the importance of I.T solutions to gain an edge in their business. •Increasing consumer awareness about IT and its use•Tremendous untapped potential of IT products in India•Increasing competition•Tie-ups with various MNCs enable to extract their core competencies

Threats•Small Players and manufactures are trying to enter into the segment where they can provide much cheaper products then HCL which will be a rising competition for HCl to stand.•Less franchise models •Local assemblers are biggest menace for the company•Advent of global players entering into India and setting up their manufacturing plants•Entry of MNCs giving direct competition

PEST Analysis

• Political– Changes in Government

Policies.– Import Duty.– Large projects stalled or

milestone delays due to lack of decisions.

• Economic– Economic growth Slow

down– Sharp swing in currency

exchange rates.– Decline in Government

spending with rising fiscal deficit.

PEST Analysis

• Social– Brand Perception – towards

Indian Brand.– Education, preferences,

income levels, and other cultural factors influence.

– Cultural aspects of different regions affect the occurrence of seasonal sales, which significantly affect the performance of the computer industry as a whole.

• Technological– Technological advances

over the past decade, such as increased processing power with reduced power consumption and reduced cost

– Ever changing and emerging Technologies

– Short product life cycle

Queries?

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