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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (4797)	6/29/1999 10:35:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

HCL Insystems Ltd floats four foreign subsidiaries Company Website hclinfosystems.com Neeraj Saxena -------------------------------------------------------------------------------- New Delhi, June 28: HCL Infosystems has consolidated its overseas operations into four subsidiaries -- Infosystems (America) Inc, Infosystems (Europe) Ltd, FEC Infosystems Pte and Infosystems (Bermuda) Ltd. The four companies were incorporated last month and will carry out all the work undertaken by HCL Insys in these regions. In addition, its projects in Japan and Australia regions will continue to be looked after by its offices there. While Singapore-based FEC will also cover the Chinese operations, HCL office in Malaysia will look after the rest of the South-East operations. The company is also actively scouting to take over a company in the US. It is presently in the process of evaluating the suitable company from among a host of names. The entire process is expected to take between six to eight months. HCL will put aside $30-40 million for the deal. The aim is to acquire a company whose operations have a lot of synergy with its operations and has projects which can be executed off-shore,according to HCL Insys general manager (marketing) Sharad Talwar. Interestingly, the other two Shiv Nadar group companies, Bermuda-based holding company HCL Technologies and NIIT too are at various stages of scouting for acquisitions for organic growth. HCL Insys also aims to convert its manufacturing units in Pondicherry and Noida to function under the soft-bonded IT units (S-BIT) scheme as and when it is implemented by the government. The scheme has been proposed by the national IT task force in its second report which is pending approval from the Union cabinet. HCL is expecting to register a annual turnover of about Rs 900 crore for the fiscal year ending June 1999. Of this, software and services revenue is expected to rise to 17 per cent of the total from 14 per cent during 1997-98. The company had logged in Rs 104 crore as revenue from services last year. According to Talwar, it will rise to about 30 per cent of the total revenue within the next three years. "Facilities and management ofcompanies' entire IT and electronic needs will form a major area of push for us in the coming fiscal. We have the expertise in network planning and management which we want to put to use. It will be one area that can accrue much more profits than software exports," said Talwar. The company has already executed two projects for Bank of Madura and Bajaj Auto on an experimental basis and plans to launch it in a big way soon.HCL Insys is also expecting to log in a 75-80 per cent growth (at around Rs 60 crore) in exports revenue in the current fiscal. The majority of it has come from software and services exports. The company is hopeful of increasing software export volumes significantly in next two years through its subsidiaries. Meanwhile, it claims to have increased its market share in the personal computer market from 10-11 per cent two years ago to 13 per cent in face of stiff competition from the assembled PC market and MNC brands like Compaq on one hand and shrinking margins on the other. The companyaims to achieve capacity utilisation of 15,000 PCs a month in the next two years, up from 10,000 at present. It will become more aggressive in the home PC segment by bundling more software and utilities, while remaining cost-competitive. Telesupport and distribution too are being beefed up considerably with its retail outlets set to increase to 100 next year from the current 70.