HCL: A short overview
Latest facts of HCL Enterprise
7th November, 2007
What’s inside
About the HCL journey………….………..……………3-5 Snapshot of the enterprise 30 year heritage
The bottom-line …………………………………………6-13 Enterprise Business Model HCL Infosystems HCL Technologies
Exploring further…………………………………………14-17 Kudos from the Industry Media coverage CSR initiatives
2
HCL - Snapshot
HCL Technologies Engineering & R&D, Enterprise & Custom Applications, Infrastructure Management & BPO Services for Global Markets
Financials* Total Revenues EBITDA Net Income Market Cap
-
$ $ $ $
HCL Infosystems 4.4 434 414 6.0
Bn Mn Mn Bn
Hardware, System Integration & ICT Distribution for the Indian Market
Employees 51,000
Global Presence
Delivery Facilities
India Presence
Sales & Distribution Network
Operations spanning 18 countries
USA, UK, Poland, Singapore and India
Offices in 170 cities & 360 service centers
50,000 outlets in 5,000 towns
*Trailing Twelve Months (TTM) as of 30th September, 2007
3
Start of the dream
1976 - Making Dreams a Reality Hindustan Computers Ltd. is born
Six young entrepreneurs left their secure corporate jobs with a dream that the microprocessor could change the world
4
Pioneering IT for last 3 decades
5
HCL business model
Networking & Network Integration
Services
IT Manufacturing
Technology Engineering and R&D
Distribution & Retail: ICT, Telecom and Imaging Products
BPO
Infrastructure
Enterprise & Custom Applications
6
The bottom line
Revenues in Bn $
EBITDA
Employee Strength
in Mn $
HCL Infosystems
2.9
100
5,467
HCL Technologies
1.5
334
45,642
HCL Enterprise
4.4
434
51,109
Figures as on 30th September, 2007 7
Raising the bar of performance Revenue (June 2000-TTM Sep ‘07 in $US Mn)
5000
4118
3546
4000 3000 2000 982 616 566 1000 456 299 546 331 251 0 205 247 285 416 2000 2001 2002 2003
1544 976
HCLT
976
2898
1390
1518
764
568 2004
2728
2570
2503 1740
4417
2005
HCLI
2006
2007
TTM Sep'07
HCL-Total
Enterprise EBITDA Trendline (2000-TTM Sep'07 in $US Mn)-IT Business
450 400 350 300 250 200 150 100 50 0
107 6748 90 18 19 2000 2001
Figures as on 30th September, 2007
80 1268 2002
100 21 79 2003
HCLT
142 28115 2004
HCLI
8
410 334
52
76
247 216
203 175 28 2005
360 308
31 2006
HCL-Total
2007
TTM Sep'07
HCL Infosystems: Leading the Indian charts
Market Share - Desktop PCs
Revenue breakup 18%
HCL – The Market Leader
Networking
16%
Computer systems 20%
15%
14%
14%
13% In %
10%
10%
70% 7%
6%
6% 4%
3%
2%
Telecom and Office Automation
ZENITH
Total : $ 2898 mn
Market Share
LENOVO-IBM
04-05
HP
05-06
HCL is Number 1 in PCs, Multifunctional Devices, Digital Projectors & Mobile Phones - IDC
HCL is Number 2, 3 in Servers & Laser Printers - IDC
HCL is Number 1 in ICT Distribution and Service Capability in India
HCL is Number 1 in Customer Responsiveness - Avaya GlobalConnect
HCL is Number 1 in Employee Satisfaction - DataQuest
9
HCL
Source: IDC
HCL Technologies: Building the overseas base Serving clients in 4 mature industry segments
Leadership Across Services
Business Process Outsourcing
Infra Mgmt Services
Enterprise Application Services
Engineering and R&D services
13%
13% 13%
Emerging Verticals 17%
Retail 10%
Telecom Service Provider 17%
24% 27%
37%
29%
Financial Services Custom Application Services
Total $ 1518 mn
Hitech / Manufacturing
HCL among the Top 5 Indian IT Players in a short span of 7 years
Selected in the “Top Offshore Service Providers Category" in the Global Outsourcing 100 by IAOP
HCL - #1 position in the top category “Top 10 Best Performing IT Services Firms” – by neoIT & Global Services
HCL BPO ranked #4 among ITES companies in India by NASSCOM
IDC rates HCL as “Leaders” in Remote Infrastructure Management; Forrester Rates as “Strong Performer”
10
Partnerships: The growth drivers Product Partnerships
1977 Leading position in Office Automation and Laptops in India
1985 21 years of strategic relationship that has seen the computer evolve from a computing device to the centre of the Digital World
1981 25 years of scripting an ear of computing across the Microprocessor
1996 Dominant position in mobile handset market in India
2004 Partnering in computing and providing IT Services
Joint Ventures
1996-2003 1991-96 Significant IT Services Created the HP brand for with quarter billion computers in India dollar enterprise value
2001-05 First Indian BPO Global Delivery Centre, currently employing 2000 UK nationals
2002-05 Largest financial service offering widest range of Capital Market Services
2005 First Japan- India hi-tech JV for Product Engineering Services
Strategic Alliances
1996 Largest development (R&D) facility outside Cisco. Gold partner for the Indian market
2005 Partners with Boeing for 787 Dreamliner programme 11
2005 HCL sets up first Power PC architecture design centre outside of IBM
2006 Industry First “EndTo End”Product Lifecycle Solution for OEMs
Geographical spread HCL Global
HCL India
Global presence in 18 countries
360 service locations
Europe Americas
National Capital Region of Delhi
Asia India
Hyderabad
ANZ
Bangalore Chennai
Americas
Europe
Asia
ANZ
Major hubs
USA
UK Germany Netherlands Sweden Belgium France Italy Poland
India Japan Singapore Hong Kong Malaysia Singapore S. Korea
Australia New Zealand
1. National Capital Region: New Delhi, Noida & Gurgaon 2. Chennai 3. Bangalore 4. Hyderabad 5. Pondicherry 6. Uttaranchal
12
Planned development centers
Upcoming facilities of HCL Location
Sq. mt.
Noida
190,000
Bangalore
110,000
Chennai
200,000
Total
500,000
13
Kudos from industry HCL has been ranked no. 5 among India’s Top 5 groups impacting the dynamics of the IT industry ‘The Most Responsive Company 2005’ – IT Hardware Category by The Economic Times – Avaya GlobalConnect Top 50 Fastest Growing Technology Companies in India & ‘Top 500 Fastest Growing Technology Companies in Asia Pacific by ‘Deloitte & Touche’
‘7th IETE – Corporate Award 2005’ for performance excellence in the field of Computer & Telecommunications Systems
HCL Technologies is ranked as Strong Positive on Technology, R&D and Product Engineering Services.
For companies that want to form a Joint Venture in India...HCL is a TOP CHOICE. It is also a top choice for embedded systems engineering and product development work
HCL Technologies ranked among Top 5 IT service Cos. RANKED #1 among World's Specialty Offshore Infrastructure Service Providers
HCL Technologies (HCL), recognized as “Investor of the Year” by the UK Trade and Investment India (UKTI) Business Awards' 14
Making news… Broadcast Media
Please visit www.hcl.in/coverage.asp for streaming format of above videos
Print Media
Digital Media
IBM and the other multinationals are becoming increasingly nervous about the fifth-biggest Indian outsourcer, HCL Technologies Please visit www.hcl.in/news.asp for details
Knowledge@Wharton interviews Shiv Nadar
15
HCL launches new brand campaign TV Ad
Print Ad
Part of HCL’s global brand building project called Heartbeat
Started in May 2007 and continues to present the technology width of HCL
It is based on How HCL’s technology touches peoples lives Widespread examples across diverse fields
Focuses on a strong youth/emotional connect
Visit www.hcl.in for HCL’s global campaigns and for further details on campaign 16 Also view the ad in streaming format at www.hcl.in/commercial.asp
HCL cares: CSR* initiatives
SSN Institutions
•
Indian School of Business •
•
Shiv Nadar with Dr. A.P.J.Kalam, President of India at SSN Institution
To act as a think tank on policy issues related to health system and establish standards in public health education and to create an India-relevant institutes of public health.
Community Support Programs
ISB symbolizes the vision of establishing a world class business school in India offering to large number of bright students in the region.
Public Health Foundation of India (PHFI) •
Founded in 1996 by Shiv Nadar, SSN Institutions provide world class research oriented quality education at affordable price in India.
Works with NGO’s Udayan, Cry for social up-liftment of underprivileged children
Concert Series
Started in 1998 it provides a platform to upcoming young Indian classical artists to express their talent
*CSR: Corporate Social Responsibility
17
Shiv Nadar, Founder HCL, being congratulated by Prof. Rammohan Rao, Dean ISB on his joining ISB’s Executive Board.
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