HCL’s 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