Spot Lightpage.3

Engagement Updatespage.4

Industry Driverspage.9

Industry Updatespage.11

page.12Technology Updates

page.13M&A and Alliances

page.14Financial Updates

page.15Funzone

Manufacturing and Hi-Tech Newslettervolume - 001 | Edition-001 | may 2016

Mfg. & Hi-Tech Bytes

Launch

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Dear team, Welcome to the first edition of the Manufacturing & Hi-Tech newsletter. Effective communication is very important for us to work as one team. This is an important initiative that I hope will start an effective communication channel for everyone connected to the Hi-Tech and manufacturing vertical within HCL. This medium will allow us to celebrate our wins, showcase our engagement with customers and share industry trends.These are very exciting times and we are on the cusp of some of the biggest changes that Hi-Tech and Manufacturing industry has seen since the dawn of Internet in 90s. Almost all companies are innovating and shifting from building a product to building a platform/eco-system that will drive new revenue streams and higher margins for them. This shift is changing the way they invest in IT. We are already seeing significant increase in spend around digital that includes e-services, IoT and Mobility. Customers are already re-evaluating their IT architecture to build a strong digital foundation that can help embrace digital seamlessly. Through this newsletter, we will keep you all updated of these and many other trends that will continue to re-shape our customers, our service lines and how we engage with our customers. I do look forward to active contribution from all of you. Happy reading!

Spot Light

page.3

page.4

page.9

Engagement Updates

Industry Drivers

page.11Industry Updates

page.12Technology Updates

page.13M&A and Alliances

page.14Financial Updates

page.15Fun Zone

table of content

Editorial Team:• Anshul Sharan Garg

• Roli Srivastava

Marketing Team:• Himanshu Joshi

Talkback: For feedback, comment, or suggestions, contact us at mfg-marketing@hcl.comThis newsletter is for prepared for HCL employees only and must be used for internal communications purposes. If you wish to reproduce, republish or reprint any of the content, please get in touch with the team at mfg-marketing@hcl.com

Amit GuptaSVP and Head, Manufacturing & Hi-Tech

Contributors:• Abhishek Singh

• Anuj Kumar

• Arindam Sen

• Farozan Parvez

• Nusrat Anjum

• Sethuraman Giri

• Shanmugam Subramanian

• Urvashi Shukla

• Vishal Mahajan

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Spot Light

April 25th - 29th, 2016: “Manufacturing & Hi-Tech Sales Induction Training Program”A week long induction was scheduled at Chennai, Hyderabad and Noida HCL campus to understand Manufacturing & Hi-Tech vertical- What we do, what are our strengths, our offerings, key engagements etc. Over the span of five days the team visited various ODC’s and had multiple sessions on HCL offerings. The team of people involved in this training were from Sales and Solutions group.

The walkthrough to CEC with corporate marketing sessions talking about 1-5-15 story, HCL Philanthropy, Ideaprenuership, EFC culture and our propositions, videos were all well appreciated. Overall the induction was a great success and the team was happy to see HCL in real sense and range of services that it offers to its client globally.”

Spot Light

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Engagement Updates

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1. ZF TRW

• SAP BW services will be converted to Managed Services.

• Demonstration of CIS (Continuous Improvement System- part of value creation system) and implementation for ZF.

• Server Migration of present environment(s) on Corporate Sonic Servers

• Implemented VIN- PPV (Purchase Price Variance- used to create the cost saving opportunity in TRW) module for ZF users. TRW CIO appreciated quick implementation

• Assessment of Managed Support operations to achieve operation efficiency by leveraging automation, business analytics using HCL’s proprietary Run.Advisor platform

• Exercising feasibility analysis of QlikView tool, to discover productivity improvement opportunities using advanced statistical models tailored to application support.

• PoC & Demo of AppDynamics tool delivered to exhibit real time infrastructure & business transaction monitoring capabilities

• Business KPI – Assessment/ Proposal in progress.

• 2 woman ideapreneurs attended Coffee with Anant for contribution in Value portal.

• Value ideas of USD 215K implemented. Additional value ideas worth USD 450K also approved and currently in implementation stage.

New Projects Milestone Achievements

Service Delivery

Value Added Services

Engagement Updates

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Leadership Changes Milestone Achievements

Value Added Services

Service Delivery/ Process Improvement InitiativesClient Visits

• Axalta underwent reorganization during Q1 2016.

• Kelly Reager is now heading IT Operations – this includes Infra and Apps.

• Fari M Azad will be responsible for IT Innovation.

• Jon Bergman has moved from IT Architecture to IT Transformation.

• Code base lining completed for 25 applications and in progress for 10 applications in configuration system

• Reconfigured the Health Monitoring Queries/Alerts for automated alert generation for any interface failure Identified problematic area :

• Ecommerce – Preliminary findings shared , detailed evaluation in progress

• Middleware - Many improvements/automation implemented, platform strategy evaluation in progress

• Forecasting Application (OMP) – Platform assessment to be initiated

• Improvement implemented in Pricing Analytics Tool: 40% reduction in cycle time

• Documentation Structure for knowledge management finalized and plan in progress

• Change approval Board (CAB) and deployment to production process established

• Value Ideas implemented to save 202 person hr/ month, delivering values of about US$93K

• Kelly Reager – Vice President Operations visited on 30th Mar’16 for QBR

• The Engagement has completed successful Service Level Observations (SLO) period and now within defined SLAs

2. Axalta

Engagement Updates

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• Upgrade Oracle ASCP (Advance Supply Chain Planning) for Commercial Vehicle System

• Upgrade of Oracle ERP and VCP (Value Chain Planning System) for Aftermarket

• Reduction in Sev1 tickets by 71% and Sev2 by 55%

• YoY Team optimization: Cost benefit of 13.18% on monthly charges (wrt first year)

• 98% improvement in ticket closure rate from previous year

• At present, 91% resources RTB certified

• 107 articles updated in KeDB till date

3. Meritor

New Projects Service Delivery/ Process Improvement Initiatives

Value Added Services

Engagement Updates

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4. Dow Corning

• Dow Chemical Co. has taken over full ownership of Dow Corning Corp. and also announced its merger with DuPont Co.

• Acquisition of Dow Corning Corp. will be completed by Q2’2016.

• Project Document Management System (DCTDOC) - to search , view, add new documents, change documents and approve documents has been initiated

• Project Corpteck (a document management application that stores technical reports) has been initiated

• Smooth Transition to new Incident Management, Request Management and Problem Management process by HCL team.

• User satisfaction score for incidents increased to 4.6 for Mar16

• User satisfaction score for Requests increased to 4.83 for Mar16

• Total Value delivered $262,230 for Year FY-2015-16 till date

• Veeraraghavan Veeraperumal Alwar taking over the Engagement Manager role from Santosh Kumar Mohapatra.

• Nusrat Anjum taking the Offshore SDM role from Gopal Sharma.

• Naveen Rana has been promoted to Technical Specialist.

• Infra project (IPT) completed and closed

• HCL team working on a transformation project – Migration of Jet Form to Adobe Form

• User Acceptance Testing completed

Business Updates Leadership Changes Steering Committee Meetings

New Projects Milestone Achievements

Service Delivery/ Process Improvement Initiatives Value Added Services

Engagement Updates

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INDUSTRY DRIVERS, CHALLENGES & TRENDS

Industry Drivers, Challenges & Trends9

Hi-Tech Industry:Hi-Tech industry comprising of varied segments such as Semi-conductor, Storage, Servers, ISVs, Peripherals, Consumer electronics, EMS vendors, Instrumentation etc. is currently going through industry dynamics. They are competing against each other to increase their market presence. Companies are majorly following these trends.• Rapid Product Innovation: - Pace of innovation has increased dramatically to satisfy ever changing consumer

demands leading to very short product life cycles as around 7-10 new products are being launched every month.

• Omni Channels: - Companies are engaging and selling to their customers 24x7. There needs to be a consistent engagement with customers across different channels with a goal of increased focus to serve the customers better.

• Green Semiconductors: - Research is going on to manufacture semiconductors with organic material in combination with doping molecules as these will be more energy efficient.

• Internet of Things: - Improving machine to machine (M2M) communications is driving the need for connecting more devices to the internet. GE, IBM, Cisco and Infineon are some of the leading companies who are starting to explore new business opportunities in this market.

• Digital Transformation: - 38% of Hi-Tech companies use mobile technology to interact to get feedback and solve problems. Social media is transforming the way Hi-Tech companies interact with customers helping illuminate what the market wants.

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Aerospace and Defence Industry: Technology trends and challenges affecting the A&D industry are-• Taking the Supply Chain Global: - Seeking new opportunities for growth, many A&D organizations are now focused

on entering new markets and taking advantage of suitable opportunities to leverage their existing services and products into adjacent markets. Though there are certain challenges for global supply chain

• Lack of information and material visibility across the extended supply chain

• Aligning operations to real-time fluctuations in customer demand

• Inadequate IT systems for supply chain visibility, planning and execution

• Supplier performance in terms of risk, reliability and quality

• Low Airfare: - Continued Demand for lower airfares ripples through the value chain. Competitive pricing in the supply chain is anticipated to be an ongoing challenge in 2016.

• Collaboration to Achieve Innovation: - With pressure mounting on A&D organizations to reduce costs and improve top-line revenues, many A&D respondents now suggest that they are building new partnerships and investing more of their revenue into R&D

• Digitalization: - Executives are capitalising on a wide range of digital business and technology opportunities. Their aim is to become across-the-board digitally enabled extended enterprises.

• Aftermarket Shifts: - A&D companies may find themselves with lower volume in some areas (like replacing tires, seats and repainting) and will have to move beyond these areas. This includes value-added services like kitting, inventory and supply chain asset management.

Industry Drivers, Challenges & Trends

Chemical Industry:

• Chemical industry which comprises of multiple segments such as Base chemicals, Speciality chemicals, Agricultural chemicals, Pharmaceuticals, Consumer chemicals etc. is witnessing these trends:

• Focus on Emerging Markets: - Currently Asia owns almost half of global chemical sales. Growth in Europe is expected to be moderate at just 1 percent. Operations are getting localized in R & D to be close to the customer in emerging markets

• Compliance and Sustainability Requirements: - After Global trade compliance in EU, REACH like regulations are expected to come up in other nations like China, US and this will increase cost of production and may make certain companies uncompetitive.

• Product and Technology: - Chemical companies are hungry for the fast insights they can get from Big Data, IoT (Internet of Things), Predictive Analytics, and In-Memory databases.

• Preparing for Distribution Channel Changes: - Companies may soon begin shipping directly to their customers, right at their facilities rather than buying finished products from suppliers.

• Consolidation:- Joint venture or mergers to gain capital and access to international markets

Automobile Industry: Auto industry needs to review and adjust their strategic priorities to face new challenges as the traditional way of operations may not address the challenges. By 2020, global profits for automotive OEMs are expected to rise by almost 50 percent. The new profits will come mainly from growth in emerging markets. Not only did emerging markets account for almost 60 percent of worldwide automotive profits but these regions are poised to significantly outpace growth in established markets over the next seven years. North America is in good shape with profits improving for this sector. The following technology trends will affect the Auto Supply Chains-• Plug in hybrids are set to attract the highest demand of

all electric propulsion technologies

• High potential for Fuel Cell vehicles

• Connectivity and Self driving cars the next big thing

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Veritas Global Databerg Report Finds 85 Percent of Stored Data is Either Dark or Redundant, Obsolete or Trivial (ROT)Veritas Technologies, the global leader in information management, today released the results of its Global Databerg Report. The survey reveals that 52 percent of all information currently stored and processed by organizations around the world is considered ‘dark’ data, whose value is unknown. Additionally, another 33 percent of data is considered redundant, obsolete or trivial (ROT), and is known to be useless. If left untamed, this dark and ROT business data will unnecessarily cost organizations around the world a cumulative $3.3 trillion by the year 2020 to manage.

ZF TRW Announces The Sale Of Its Global Engineered Fasteners And Components Business

Agilent Technologies Receives Award for Outstanding Customer Service for Second Straight Year

Business will be sold to Illinois Tools Works (ITW), a significant manufacturer of fasteners and components for approximately $450 million USD. Operates in all major regions with 3,500 employees worldwide. Sale is expected to be completed in the first half of 2016

Agilent Technologies Inc. announced it has been recognized with the 2016 Reviewers’ Choice Award for Customer Service from SelectScience, an independent, expert-led scientific review. This is the second year in a row that SelectScience reviewers, which include scientists around the world, judged Agilent’s customer service to be the best in the laboratory products industry.

Industry Updates

Industry Updates

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2016 Industrial Manufacturing Trends (modern factory):

The Connected Home Is Micron’s Next Growth Frontier

Agilent Makes Some Major Moves in Biotech:

Manufacturing may be facing some headwinds, but it’s undeniably in the midst of a technological renaissance that is transforming the look, systems, and processes of the modern factory. Despite the risks — and despite recent history — industrial manufacturing companies cannot afford to ignore these advances. Customers, designers, and operators will share information on everything from initial concepts, to installation, to performance feedback throughout the life cycle. Operators will access materials on demand, collaborate with robots to use them safely and ergonomically, and rely on virtual work instructions presented at the point of use.

Agilent has been in the news lately with three major announcements in bioinformatics, molecular biology and biotechnology

• First, we introduced OneSight, a new product for studying cell-free DNA

• Second, we are expanding our offerings in molecular and synthetic biology

• Finally, we announced an $80 million investment in Lasergen, an emerging biotech company with offerings in molecular and synthetic biology

The Connected Home is necessary to allow consumers to save money and time moving forward. Micron has already started “seeing increased DRAM demand in Connected Home segment”. Micron’s 20nm (is NM a technology or should it be 20 mn) technology, Inotera acquisition & 3D XPoint will enable it to gain more sales in the Connected Home segment.

Technology Updates

Technology Updates

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Brocade to buy Ruckus Wireless in $1.5 billion deal:

SanDisk’s InfiniFlash looks in its closet, pulls out a Red Hat to wear

WABCO, Cummins partner to manufacture and supply air compressors globally

Carlyle, Symantec Agree to Lower Price for Veritas Deal

Network gear maker Brocade Communications Systems Inc (BRCD.O) said it would buy Ruckus Wireless Inc (RKUS.N) in a $1.5 billion deal, aiming to tap into the growing demand for Wi-Fi access over large areas such as offices and stadiums.

SanDisk and Red Hat have formed an alliance: the crimson cranial-covering company’s Ceph Storage software will be offered as the preferred Ceph software by SanDisk for its InfiniFlash box. SanDisk’s year-old InfiniFlash all-flash array box offers 512TB of capacity in a 3U box with the hardware powered by Ubuntu Linux, and presented as a JBOF: just a bunch of flash. At launch it could run Ceph’s open-source, unified, scale-out block, object and file system, or SanDisk’s ION Accelerator software stack for block storage alone.

WABCO Holdings announced that it has entered into a new long-term agreement with Cummins Inc. to manufacture and supply high-performance air-compressor technology globally. This major contract expands the scope of WABCO’s existing U.S.-based joint venture with Cummins

Carlyle Group LP and Symantec Corp. agreed to revise the terms of a deal for Symantec’s Veritas data-storage unit, lowering the purchase price for the biggest announced U.S. leveraged buyout of 2015 amid strains in the debt markets. Under the terms of the agreement the price will be reduced to $7.4 billion from $8 billion. Symantec will keep a stake in the business worth $400 million while an additional $200 million in cash will be put on the company’s balance sheet.

Illinois Tool Works (ITW) to Acquire ZF TRW ODC’s EF&C Business in ~$450M DealIllinois Tool Works Inc. (NYSE: ITW) announced that it has reached a definitive agreement to acquire the Engineered Fasteners and Components business (EF&C) from ZF TRW for approximately $450 million. EF&C, a leading global supplier of engineered fastening systems and interior technical components to the Automotive OEM market, generated revenues of approximately $470 million in 2015. Headquartered in Germany, the company operates 13 manufacturing facilities globally and employs approximately 3,500 people.

M&A and Alliances

M&A and Alliances

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Financial UpdatesNetApp is number two in the all-flash market, says IDC

Micron Technology has had a Rough 2016

NetApp is now second in the all-flash array market, according to IDC numbers we have been given. The numbers are for vendor revenues and the first quarter of 2016. The figures show NetApp having $181.1m revenues and a 22.8 per cent share, second to EMC’s $245.6m and 30.9 per cent share.

Memory chip maker Micron Technology (MU - Get Report) has had a rough ride since tasting success from 2014 through 2015. A cyclical business governed by the constant churn of demand and supply, Micron is currently in a down cycle and appears to be a dangerous stock poised for steep declines. According to IDC, global smartphone shipments will increase this year only by a single-digit percentage, a trend that contrasts to previous periods of exponential growth.

Financial Updates14

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AHM & Women’s Day Celebrations @ ZF TRW ODC

Fun Zone

Fun Zone15

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