Restructuring to enable dedicated focus and customized strategic approach for different businesses
Distribution and Services to be key growth engines.
HCL Infosystems, India’s Premier Distribution, IT Services and Solutions Company announced that its Scheme of Arrangement on restructuring of its businesses has become effective from 1st Nov 2013. Under the restructured organization, the Company’s businesses of Solutions, Services and Learning have been transferred to the wholly-owned subsidiaries HCL Infotech Ltd., HCL Services Ltd, and HCL Learning Ltd respectively while the Products Distribution business would be with the Parent entity HCL Infosystems. Earlier in January this year, the Board of Directors of the Company had approved the alignment of Solutions, Services and Learning businesses of the Company along the three subsidiaries through a Composite Scheme of Arrangement. The Hon’ble High Court of Delhi has approved the Scheme of Arrangement and the copy of the High Court order has been filed with the Registrar of Companies, NCT of Delhi & Haryana.
This restructuring of the business into separate subsidiaries is part of the Company’s strategy to enable sharper focus on each core business and adopt a customized strategic approach for each business area.
Mr. Harsh Chitale, CEO & Managing Director, HCL Infosystems said. “As you would already know, HCL Infosystems is a large organization with diverse nature of businesses, each with very different kind of human resources, technical and financial requirements. This restructuring process was initiated with a clear objective of enabling each business to meet its individual requirements and build an organization customized to that business. Now there would be independence as well as accountability for each of the businesses. There will be greater visibility on the financial and operational performance of each business, restructuring would also address more effectively the funding and capability acquisition needs of these businesses.”
“This restructuring would now enable us to have undivided focus and attention on our key growth engines – Distribution and Services. Our Distribution business has been growing on the back of robust performance of Telecom Distribution coupled with increased momentum of non telecom distribution through the addition of many leading brands in IT, Office Automation and Consumer Electronics space. This restructuring would also enable our Services business, carved out in HCL Services Ltd, the flexibility to invest in capability building and rapid expansion across markets. Our Services business has built a healthy order book on back of large Managed Services and Break-fix services outsourcing deals. At the same time our Services business would explore growth in emerging technologies. The restructuring also bodes well for one of new businesses, Learning, which is now ready to stand on its own feet as a separate subsidiary. The restructuring will allow our Learning business to pursue strategy best suited to meet its large expansion goals.” added Mr. Chitale.
Amongst all the growth oriented changes, certain aspects of HCLI’s core DNA will remain same including the way HCLI deals with its customers, the brand assurance, quality, and capabilities. For customers, alliance partners and vendors there will be no changes in HCL contact points, credentials, capabilities, business leadership or any other such aspect.
Mr. Rothin Bhattacharya, Executive Vice President, Marketing, Strategy & Business Development, HCL Infosystems said “HCLI will continue to be people centric in its approach and our employees would be at the center of all that we do. While employees will be transferred to the respective subsidiaries, there will be no change in the employment conditions and HCL’s people-focus culture. Also this is an important launch pad for all our businesses to achieve their individual visions. Some of our recently incubated businesses can now behave like start-ups. Our large growth focus businesses such as Services and Distribution will now be able to receive undivided focus and attention”.
About HCL Infosystems
HCL Infosystems Ltd. with revenue (LTM) of US$ 1.6 billion (Rs. 9,040 crores) is India’s Premier Distribution and IT Services and Solutions Company. HCL Infosystems’ has one of the largest sales & distribution network in the country and provides value added distribution for partners including last mile connect and support in marketing and promotions for Telecom, IT , Office Automation and Consumer Electronics products covering more than 15000 towns across 664 districts in India. Our distribution business has an unparallel network that reaches more than 80,000 retail outlets, over 800 Direct and Micro Distributors and over 400 Channel Partners across India. In the services space the Company has robust services offerings such as a comprehensive portfolio of Infrastructure Managed Services, Enterprise Application Services, System Integration Services, Office Automation Services, Managed Print Services, Life Cycle Services and After-Sales Support Services. HCL Learning, the Company’s learning solutions business, serves the entire spectrum of education and training requirements across schools colleges, individuals and enterprises and offers Digital Content & Learning Solutions.
For more information please visit us at www.hclinfosystems.in
HCL is a $6.3 billion leading global technology and IT enterprise comprising two companies listed in India – HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India’s original IT garage start-ups. A pioneer of modern computing, HCL is a global transformational enterprise today. Its range of offerings includes product engineering, custom & package applications, BPO, IT infrastructure services, IT hardware, systems integration, and distribution of information and communications technology (ICT) products across a wide range of focused industry verticals. The HCL team consists of over 90,000 professionals of diverse nationalities, who operate from 31 countries including over 720 points of presence in India. HCL has partnerships with several leading global 1000 firms, including leading IT and technology firms.
For more information, please visit www.hcl.com