hcl’s overview

7/31/2019 HCLs OVERVIEW

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HCL: Pioneers of Modern Computing


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At a time when India had a total of just 250 computers,Shiv Nadar, the founder of HCL, led a young team of eightpeople who passionately believed in the growth of the ITindustry. That vision in 1976, born out of a Delhi barsaati,(akin to a garage start-up), resulted three and a half

decades later into a global transformational technologyenterprise.

Hindustan Computers Limited3-decade-old enterprise,founded in 1976, is one of India's original IT garagestartups. Over the years, HCL witnessed many firsts whichlegitimized its status as a pioneer in modern computing.

HCL Enterprise is a 36-year-old leading Global Technologyand IT enterprise, with USD 6 billion revenue, 88000professionals and operations spanning 31 countries


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1st PHASE:Developed the first indigenous micro-computer at the same time as Apple and 3 yearsbefore IBM's PC in 1978. This micro-computervirtually gave birth to the Indian computer industry.

2nd PHASE:Along with the swiftly growing software

technology industry, HCL, which was hitherto knownas the pioneer in modern computing made the adventinto software development. HCL's R&D was spun off asHCL Technologies in 1997 to mark their advent into thesoftware services arena.

3rd PHASE:Today, HCL sells more PCs in India than any

other brand, runs Northern Ireland's largest BPOoperation, and manages the network for Asia's largeststock exchange network apart from designing zerovisibility landing systems to land the world's mostpopular airplane. And this it does across 31 countriesand across 505 points of presence in India.


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1976-Hindustan Computers Limited was born

1977-Forms distribution alliance with Toshiba for copiers and notebooks 1978-Successfully ships in-house designed micro computers

1980-Introduced Bit sliced,16-bit processor based microcomputer

1983-Indegenously develops an RDBMS, a Networking OS and a clientServer architecture, at the same time as global IT peers.

1986-Becomes the largest IT company in India.

1988-Introduces fine grained multi-processor Unix-3 years ahead of Sunand HP.

1990-Data Quest marks HCL No.1 amongst top ten computer giants.

1991-Entry into contract R & D.

1994-Forges distribution alliance with Ericsson and Nokia.

1997-HCLs R & D spun-off as HCL Technologies marks advent into softwareservices.

1999-Initial public offerings made by HCL technologies ltd.


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2000-Large contracts won by Cisco, Bankers Trust, GTECH etc

2001-Joint Venture with Deutsche Bank

2002-Infrastructure services division launched to address emerging globalneeds.Software businesses of HCL Infosystems and HCL Technologies emerged.

2003-HCL becomes the first company to cross the 100000 unit milestone in theIndian Desktop PC market.

2005-Joint Ventue with NEC,Japan.

2006-HCL Infosystems tied up with Apple for ipod distribution. HCL Technologies

signs largest ever software services deal with DSG.

2007- HCL as an enterprise crossed the $4 billion watermark. HCL commencesproduction in its ISO 14001 and ISO 9001:2000 certified-second manufacturingfacility in Uttaranchal and thereafter winning several awards.

2008-Recognised as Britains Top Employer.Named in Worldbblu list for one of themost democratic workplaces.Ranked No 1 in traditional outsourcing. Aquisition ofAXON group plc, largest indian aquisition.

2009-Joint Venture with Nokia and BSNL.


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1976 - Making Dreams a RealityHindustan Computers Ltd. is born.

1970s & 80s - The Pioneering YearsDevelops the first indigenousmicrocomputer at the same time asApple and 3 years before IBM's PC in1978.

This micro-computer virtually gave

birth to the Indian computer industry.

*Enters into JV with HP, Nokia and

Perot Systems.

*Launches Indias first Home

Computer - The BeanStalk

*Pioneers remote infrastructure

management, now one of worlds

best performing Infrastructure

providers

*HCLs R&D is spun-off as HCL

Technologies - marks advent into

software services

Addressing end to end technologysolutions in the Security & Surveillance

domain

Empowering space research andoilfield exploration with High

Performance Computing

Acquires AXON - the largest acquisitionever by an Indian IT company

Designs implantable medical devicesfor pain relief

Creates Flight Management systemsfor the world's most advanced aircraft

1970s & 80s - The

Pioneering Years

1990s - Years of

Consolidation

Building Technologies of

the Future


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Factors to SUCCESS STORY

Powerful BrandImage

BlendedSolutions

ExperiencedTeam


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MISSION AND VISION

VISION

"Together we create the enterprises oftomorrow

MISSION

"To provide world-class informationtechnology solutions and services to enable

our customers to serve their customersbetter"


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HCL Group

HCL

HCL AXON

HCLInfosystems

HCL BPO

HCLInfiNet

LtdHCL ISD

HCLSecurity

HCLTechnologies
http://www.hcl-axon.com/http://www.hclinfosystems.in/http://www.hclinfosystems.in/http://www.hclbpo.com/http://www.hclinfinet.com/http://www.hclinfinet.com/http://www.hclinfinet.com/http://www.hclisd.com/http://www.hclsecurity.in/http://www.hclsecurity.in/http://www.hcltech.com/http://www.hcltech.com/http://www.hcltech.com/http://www.hcltech.com/http://www.hclsecurity.in/http://www.hclsecurity.in/http://www.hclisd.com/http://www.hclinfinet.com/http://www.hclinfinet.com/http://www.hclinfinet.com/http://www.hclinfinet.com/http://www.hclbpo.com/http://www.hclinfosystems.in/http://www.hclinfosystems.in/http://www.hcl-axon.com/


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HCL Management

Six young entrepreneurs leave their securecorporate jobs with a dream that themicroprocessor would change the world

Six original promoters:

Shiv Nadar, Ajai Chowdhury, D.S Puri,Subhash Arora, Yogesh Vaidya and Malhotra

Today, HCL is a $6.2-billion global enterprise withover 90,000 professionals from diversenationalities, who operate from 31 countries

including over 505 points of presence in India.


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HCL Technologies The Magic of the

Empowered Employee HCL Technologies provide global IT Services.

Founded-12 November 1991

Key people-Shiv Nadar(Chairman & CSO)Vineet Nayar (VC & CEO)

A leading provider of business transformation, enterprise & custom applications,infrastructure management, business process outsourcing, and engineeringservices.

HCL takes pride in its philosophy of Employees First, Customers Second which

empowers its 83,076 transformers to create real value for over 500 forward lookingcustomers, seeking to shift paradigms and transform the way business is beingdone.

HCL is a global technology enterprise and a name to reckon with, in the industry.


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HCL Infosystems On a

Transformation Journey HCL Infosystems is into IT infrastructure Solutions.

Ajai ChowdhryChairman - HCL InfosystemsPadma Bhushan Awardee, 2011

HCL Infosystems Ltd, is Indias premier hardware, services and ICT systemsintegration company offering a wide spectrum of ICT products thatincludes Computing, Storage, Networking, Security, Telecom, Imaging andRetail.

HCL Infosystems the first company in India to create special products forthe rural market place. The whole objective was to eradicate the digitaldivide between urban and rural.

HCL is a one-stop-shop for all the ICT requirements of an organization.


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Partnerships: the Growth Drivers for

HCL


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HCL adorned with AWARDS AND

RECOGNITIONS

India's Most Preferred Personal Computer

Brand by CNBC AWAAZ Consumer Award 2007

India's 'No. 1 PC Vendor'consecutively for six years.HCL among the Top3 IT companies for the last 3 years, DQ &IDC,Best Employer Survey, 'Bestemployer 2005' with Five Star Ratings Systems

'Top 50 in ET Top 500 Companies' Listings for2006
http://www.hclinfosystems.in/news98.htmlhttp://www.hclinfosystems.in/news98.htmlhttp://www.hcl.in/files/Business_Legend_Shiv_Nadar_Moneycontrol.pdf


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Top 21 companies in Business Standard 1000 Ranking2006

Top 50 Fastest Growing Technology Companies in India& 'Top 500 Fastest Growing Technology Companies inAsia Pacific' by 'Deloitte & Touche'

'The Most Responsive Company 2005' - IT HardwareCategory by The Economic Times - AvayaGlobalConnect

'7th IETE - Corporate Award 2005' for performanceexcellence in the field of Computer &Telecommunications


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Latest Updates

*Declares HCL among worlds top 30 most influentialcompanies and one of the worlds top five EmergingCompanies to Watch

*Recognize HCLs Employee First Philosophy as the worlds

most modern management

*HCL is featured as a case study in a

global bestseller

*HCL wins FT ArcelorMittal Boldness in Business Award

IBM and the other multinationals are becoming increasingly nervous

about the fifth-biggest Indian outsourcer, HCL Technologies


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*Shiv Nadar, Founder - HCL, receives the Padma Bhushan award,

third highest civilian recognition bestowed by the President

of India

*HCL ranked 3rd in India by Brand Equitys Most TrustedBrands

Survey 2010

*Harsh Chitale - Appointed as CEO, HCL Infosystems

*Shiv Nadar, Founder - HCL, conferred the

*DataQuest IT Lifetime Achievement Award,2010

*Shiv Nadar, Founder - HCL, declared the NewsX Businessman of

the year 2010

*Shiv Nadar, Founder - HCL, conferred the ET Corporate

Excellence Award for CSR for his outstanding philanthropic

endeavours

Ajai Chowdhry, Founder - HCL, receives the Padma Bhushan

award, third highest civilian recognition bestowed by thePresident of India


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HCLs Differentiation Strategy


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HCLs Business Model

Americas

Brazil

Puerto Rico

USA

Mexico

Europe

Belgium Czech Republic

Finland

France

Germany

Italy

Netherlands

Poland

Sweden Switzerland

UK

Norway

Denmark

Asia

China

Hong Kong

India

Israel

Japan

MalaysiaSaudi Arabia

Singapore

UAE

Qatar

Indonesia

ANZ

Australia

New Zealand

Africa

South Africa


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FINANCIAL ANALYSIS2007 2008 2009 2010 2011

Sales 3,768.62 4,615.39 4,675.09 5,078.76 6,794.48

Operating profit 929.45 941.79 1,208.09 1365.16 1516.37

EPS (Rs) 16.6 11.72 14.88 15.57 17.4

Net profit / loss 1,101.82 780.65 997.31 1056.58 1,198.28

Current ratio 1.41 1.12 1.83 2.24 2.09

Quick ratio 1.39 1.06 1.71 2.19 1.97

Debt equity ratio 0.01 0.01 0.14 0.28 0.17


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Sales

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

12

34

5

Series1SALES


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HCL has witnessed considerablehike in its sale, thereby capturinga major market share.

The rising geographical and

product growth has led to thisstandard performance therebyearning a huge revenue atpresent.

The sale hike is especially seen in

UK and Asia due to high brandvisibility and reasonable cost ofits high quality products.


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Operating Profit

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

1 2 3 4 5

Series1

OPERATINGPROF

IT


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It illustrates how efficiently the managementof HCL used business operations to generateprofit. This ratio also shows the success rate ofthe HCL managers. The formula for OperatingProfit Margin is:

Operating Profit Margin = Earnings before

Interest & Taxes / Sales HCLs operating profit is seen to be rising as

follows;

The higher the HCLs Operating Profit Margin,the better. This is because a higher OperatingProfit Margin shows HCL can keep its costs

under control. It means sales are increasingfaster than costs, and HCL is in a relativelyliquid position.


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Earnings per share

0

2

4

6

8

10

12

14

16

18

20

1 2 3 4 5

Series1EPS


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Earnings per share generally is consideredthe single most important variable indetermining a share's price.

= Net annual earnings / Number of sharesissued

Increasing EPS is a desirable attribute ofHCL

EPS growth here provides an indication ofthe future prospects of HCL.

Investors assess share price and valuebased on one share of stock, helps thecompany greatly in its financial stability.

EPS of HCL is eye-catching incomebelonging to one share of stock leading tomore potential investors. Unless we arebuying entire companies. HCLs increasingEPS is useful in forming opinions about thefavourable value of equity investments.


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Net Profit

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1 2 3 4 5

Series1

NETPROFIT


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HCL is seen to have steady profitgrowth rate.

The average in a poll of 22 analystsindicates HCL would post 21% growthin net profit to INR5.67 billion.

HCL is performing relatively well in theworl market and has the potential ofoptimally sufficing the target set bythe company this year.

A mature company like HCL finds itfavourable to have a steady profitgrowth rather than instinctive hikes forits stability. Thereby paying theirshareholders dividends on positiveterms.


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Current Ratio

0

0.5

1

1.5

2

2.5

1 2 3 4 5

Series1

CURRENTRAT

IO


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This ratio measures a company's abilityto pay short-term obligations.

=Current Assets/Current Liabilities

The rising current ratio, portraysHCLs capability of paying its

obligations.HCLs current ratio can give a sense ofthe efficiency of a HCL's operatingcycle or its ability to turn its productinto cash.

Here we see that HCL has strived and

maintained a favourable liquidityposition to meet contingent threats aswell as opportunities relative to itshistorical years.


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Quick Ratio

0

0.5

1

1.5

2

2.5

1 2 3 4 5

Series1

QUICKRATIO


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It is an indicator of a company's ability tomeet its short-term obligations, and thereforegives a sense of general financial strength.Theformulae is-

=(current assets - inventories)/currentliabilities

The quick ratio analysis shows that HCL couldmeet its current obligations with its readilyconvertible assets if sales should suddenlystop. The high ratio growth, determines thesound position of HCL.

A high or increasing quick ratio of HCL

indicates it is experiencing solid top-linegrowth, quickly converting receivables intocash, and easily is able to cover its financialobligations. HCL is thereby seen to havefaster inventory turnover and cash conversioncycles.


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Debt Equity Ratio

0

0.05

0.1

0.15

0.2

0.25

0.3

1 2 3 4 5

Series1

DEBTEQUITYRATIO


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The Debt/Equity ratio is a measure of acompanys reliance on debt. It is used asand indicator as to what proportion ofequity and debt the company is using tofund its assets and is therefore calculatedby-

= Liabilities / Equity

Due to the rising growth and expansionthe HCL has adhered to lot of outsidenumber along the years. Presently there isa fall compared to previous year. It simply

means that HCL has used a lot of outsidefinancing to finance their company,meaning a lot of thebusinesss expenses go towards repayingthese loans.


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Market Competitors


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HCLs market share

1

2

3

4

5

6

7

TCS

Infosys

Wipro

HP

Cognizant

HCL

IBM


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SWOT Analysis

HCL

1) Vineet Nayar's deal-making

capabilities has brought in incremental

business higher than rivals.

2) Customers like Boeing and Deutsche

continue to give more business, Axon

acquisition considered a silver bullet.3) High brand image

1) Overly aggressive acquisition

brings risks of additional staff in

high-cost geographies.

2) Profit margin lowest among all

India-based vendors, back-officebusiness still in transition.

1) Sacrificing margins should help gain

more business.2) Best positioned to rival TCS in terms

of scale.

3) European market

1) High-risk contracts could affect

cash flow and dent profit.

2) Post-Nayar leadership issue

can be a tricky to solve.

3) Global IT giants


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Recent Success NEWS

15TH April , 2012(The Economic Times)-Naysayersto Indias fourth largest software giant must beeating a humble pie as HCL Techs latest quarterlyfigures beat analysts estimates, once again.

9TH April,2012(Data Quest)-HCL continues tohave a good run in Europe

30th March,2012(Business Standards)-HCL

ranked No.1 in Customer Satisfaction audit overthe globe

and more to come


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FUTURE TARGETS

SOC

IAL The company has plans

to target public sectorprojects to fuel future

growth.

HCL targets to translateholistic understandinginto actions based onour values andcollectivewisdom,adhering to

corporate governance.

GLOBAL HCL has underlined its

position as a 'SociallyResponsible Business'

by announcing a seriesof initiativesaround building GlocalCentres of Excellence(GCoE) with the aim ofcreating 10,000 jobs inthe US and Europe.

Interested in Britishcompanies with astrong continentalEuropean footprint,going for M&A plans.

TECHNOLO

GY Introducing world-class

telecom,imaging,digitallifestyle solutions with

eco-fr

Cheapest high quality ITaccessories.

HCL Technologies planscapex of $230 millionfor FY12 through its

recent projects.


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CSR initiatives

Public HealthFoundation of India

HCL acts as a thinktank on policyissues related to

health systems toestablish standardsin public healtheducation

Community SupportPrograms

HCL works withNGO's Udayan, cryfor social up-

liftment ofunderprivilegedchildren

Concert Series

Started in 1998 itprovides a platformto up coming

young Indianclassical artists toexpress their talent

ConcertIndianSchool of Business

ISB symbolizes thevision ofestablishing a

world classbusiness school inIndia offering tolarge number ofbright students inthe region.


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Advantages of HCL

From aeronautics to life sciences, HCL touchesmillions of people through technology across the

world everyday

Touching lives

One of the pioneers in modern computing , ourexpertise spans globally and we make a difference.

Future proofing the World


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Conclusion The TIME magazine has referred to HCL as an

"intellectual clean room where its employeescould imagine endless possibilities". The fact is,over the last thirty years that HCL has beenoperational, the company has stood by itsvalues and core philosophy.

HCL believes that strong corporate governancepractices should be integral to all activities ofits Group Companies to ensure efficientconduct of the affairs of the Companies, whileupholding the core values of transparency,integrity, honesty, and accountability.

Thereby great entrepreneurial existence andwin-win relationship driven culture continues

to guide HCL in all its endeavors towardssuccess.


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Bibliography

http://www.hcl.in

http://www.hclinfosystems.in

http://investment.contify.com

http://dqindia.ciol.com

http://www.moneycontrol.com

http://www.realtimenews.in Business Standards


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HCLtechnology that touches life

hcl’s overview

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