INFOSYSTEMS LIMITED COMPANY PROFILE

Born in 1976, HCL has a 3 decade rich history of inventions and innovations. In 1978, HCL developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC. During this period, India was a black box to the world and the world was a black box to India. This micro-computer virtually gave birth to the Indian computer industry. The 80's saw HCL developing know-how in many other technologies. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP.

HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how, developed over 28 years into multiple practices - semi-conductor, operating systems, automobile, avionics, bio-medical engineering, wireless, telecom technologies, and many more.

Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane.

HCL Infosystems Limited' manufacturing facilities are ISO 9001 - 2000 & ISO 14001 certified and adhere to stringent quality standards and global processes. With the largest installed PC base in the country, four indigenously developed and manufactured PC brands - 'Infiniti', 'Busybee' 'Beanstalk' and 'Ezeebee' - and its robust manufacturing facilities; HCL Infosystems Limited aims to further leverage its dominance in the PC market. It has been consistently rated as Top player in PC industry by IDC .The 'Infiniti' line of business computing products is incorporated with leading edge products from world leaders such as Intel. A fully integrated and businessready family of servers and workstations, the 'Infiniti Global Line' is targeted at medium and large companies to help them to manage their enterprise-related applications. It has considerable

dominance

in

verticals

like

Finance,

Government,

and

Education

&

Research.

The Channel Business of HCL Infosystems Limited has an extensive network of over 2500+ resellers across 300 locations. It has actively promoted the penetration of PCs in the home and the small office/home office (SOHO) segments, through Beanstalk, Ezeebee & Busybee PCs and ToshibaLaptops. HCL Infosystems Limited has two focused business units. While HCL Infosystems Limited concentrates on the IT products, solutions and related services business, HCL InfiNet focuses on the rapidly growing communication and imaging products, solutions and services industry.

HCL InfiNet, with a presence in more that 35 cities, has the ability to service around 250 cities in its catchments area. It provides corporate networking services like Virtual Private Network, Broadband Internet Access, Hosting & Co-location services, designing & deploying Disaster Recovery Solutions & Business Continuity solution, Application Services, Managed Security Services & NOC Services over its state-of-the-art IP network to over 200 corporate. With the Office Automation (OA) Division being part of it, HCL InfiNet now has an exclusive sales and support partnership with Toshiba Corporation, Japan, for its photocopier products. The product portfolio covers a range of other office automation and communication products through alliances with world leaders - including Duprinters from Duple, data projectors from In Focus, Telecommunication solutions from Samsung and Ericsson and mobile communication products from Nokia. HCL Infinite Ltd. has a strong and dedicated retail network of Nokia Professional Centers, Nokia Priority Dealers and Re-distribution Stockiest across the country.

HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For over quarter of a century, we have developed and implemented solutions for multiple market segments, across a range of technologies in India. We have been in the forefront in introducing new technologies and solutions. In the early 70s a group of young and enthusiastic and ambitious technocrats embarked upon a venture that would make their vision of IT revolution in India a reality. Shiv nadir and five of his colleagues got together and 1975 set up a new company MICROCOMP to start with; they started

to capitalize on their marketing skills. Micro comp marketed calculators and with in a few month of starting operation, the company was out selling its major competitors.

BRAND PORTFOLIOS OF HCL INFOSYSTEMS

Beanstalk neo HCL Ezeebee HCL Busybee HCL beanstalk Notebook PC from Toshiba HCL printer WEBCAM RP2 SYSTEM UPS HCL COLOUR TFT HCL PLAY TVPRO neo cam (Digital camera) neo Pod ( Digital Music Player) Real server

Vision Statement We Shall be the most preferred employer and principal taking leading edge IT products and services to the masses through sustained excellence.

Mission Statement We shall increase the shareholders value by improving the PAT through free cash flow, reducing the BR cycle, inventory levels, wastage.

Quality Policy Statement We will deliver defect-free products, services and solutions to meet the requirements of our external and internal customers the first time, every time.

Management Objective To fuel initiative and foster activity by allowing individuals freedom of action and innovation in attaining defined objectives.

People Objective To help HCL Insys people share in the companys success, which they make possible; to provide job security based on their performance; to recognize their individual achievements and to help them gain of satisfaction and accomplishment from their work.

Core Values We shall Uphold the dignity of individual We Shall Honour all commitments We Shall be Committed to quality, Innovation and growth in every endeavor We Shall be responsible Corporate Citizens.

ORGANISATION STRUCTURE

Frontline Head Regions Marketing Support Logistics Accounts HRD IT

Entity Head Business Head Direct Team Accounts Logistics Channel Consultant TSS Head Technical Specialist Operations Team

Indirect Team

MAJOR PLAYERS IN THE MARKET

HCL D E LL IB M SAHARA A P P LE H P - C O MP A Q ZE N IT H ACER IN T E X SONY PCS LE N O V O

MARKETING STRATEGIES
HCL Infosystems Limited (HCL Insys) is Indias technology integration company. Over the years, HCL Insys has positioned its business operations to fulfill its vision statement: Together we create enterprises of tomorrow. The overarching theme for the companys swift progression into the software and services arena, in India and globally, is evolving. Signifying a state of constant growth, the evolve theme is visible in the many ways that HCL Insys has undergone a metamorphosis into becoming a complete IT solutions company.

Within this, the company has conceptualized the Net. Strategy to address the e-commerce market. HCL Insys has added both Internet-focused solution and skill sets. For this, it has acquired critical expertise in e-commerce development tools. It has also developed the ability to integrate e-commerce infrastructure with enterprise application such as SAP, CRM and SCM. Infrastructure essentials such as complex networking, network management, security and post implementation facilities management also form part of this strategy.

HCL Insys NET.STRATEGY

DOMAIN KNOWLEDGE BUSINESS MODELLING TOOLS PRODUCTS APPLICATION
SERVICES INDUSTRY BANKING INSURANCE &

TELECOM

MANUFACTURING

GOVT

JAVA++, MICROSOFT E.COM SAP,CRM,SCM/INTEGRATION & POST IMPLEMENTATION SUPPORT KNOWLEDGE MANAGEMENTE.COM.,INTERNET,BANKING FILENET SECURITY

INFRASTRUCTU RE

NETWORK MGMT.SOLUTIONS

NETWORK ARCHITECTU RE

FACILITIES MEMT.

Yet another significant movement in the Company was globalization. To become a dominant player in providing global IT services, HCL Insys has reorganized and consolidated its hardware and services business. The first step towards this was the acquisition of the assets of HCL Info solutions and HCL Peripherals, and the customer support activities, related products and human resources of HCL Office Automation in mid-1998. In 1999, HCL Insys completed acquisition of FEC Singapore Pvt. Ltd. The Companys acquisition strategy, too, maps into building a long-term and sustainable growth path based on the high-margin, high value-add IT services sector. In fiscal 2000, the companys focus was on organic growth as well as acquisitions. The next step was expanding its reach globally.

For this, HCL Insys has set up five overseas subsidiaries-in the US, the UK, Singapore, Australia and Malaysia.

The menu of HCL Insys global services broadly covers IT consulting and professional services in the area of vertical applications, technology integration, ERP implementation and software development. This also includes a complete portfolio of systems and network services for development. This also includes a complete portfolio of systems and network services for Facilities Management, Helpdesks, Sysytems Supports and network and Internet

Implementation. HCL Insysglobal customers include Samsung, Government of Singapore, and AMAL insurance Jurong Port in Singapore and Malaysians BSN commercial bank, SIA, DBS bank, Maybank life assurance charted semiconductors, Asia Matsushita and Shell Malaysia. Some of its global customer in the government sector is Inland Revenue authority of Singapore, civil aviation authority of Singapore, Singapore power, ministry of education, health and national development, telecom authority of Singapore and penang state govt.

HCL Insys chosen platform of total technology integration lends itself to some very significant alliances with the global leaders. Among its partner are HP for high end AISCE/UNIX services and workstation and HP Open view network management solution; Intel for PC and PC server building blocks; Microsoft,novell and SCO AG solutions; Red hat ;Linux; Samsung; Pivota for CRM solution and ORACLE Sybase and Informix for RDBMS platform.

Today the company has aligned its operations into five entities that offer seamless linkages for the customers seeking entry into the wired world through total the. Integration solution ands services. A brief profile of each of these is as below:

KEY PARTNERSHIPS

Product Offerings

Copiers,Projectors,Plasma, Data Walls

Presentation & Documentation Products

AV System Integration

Interactive white boards

Interactive Presentation And Room Reservation

Imaging Products Telecom Products

Range of Mono , Color Laser printers

Laser Printers

GSM Mobile phones & accessories

All ranges of Nokia GSM Cellular Phones

PBX, KTS, DECT Cordless, Call Centre, IP Telephony, WLAN, Unified Messaging

Telecom Solutions

Not to scale

HCL Unveils HCL Mobile Excitement New Marketing Strategy Focused on Todays Mobile Consumer-

- Initiative includes new HCL ME range of leaptops, re-branding of all HCL Digilife stores nationally and a brand new TVC and logo on the theme of mobility New Delhi, 24th September, 2009: HCL Infosystems Ltd, one of Indias premier hardware, services and ICT system Integration companies today announced the launch of HCL Mobile Excitement, one of the Companys largest marketing initiatives since the inception of HCL in 1976.The multi dimension initiative includes more focused marketing strategy towards todays nomadic customer and saw the launch of a new logo and TV commercial focused around mobility and lifeonthe-go. Based on the findings of a survey carried out by research firm IMRB on todays consumer, HCL has launched this new marketing campaign ME to establish a more youthful and vibrant image of the brand to ensure a stronger connect with NextGen consumers. The Companys new TVC and logo, an integral part of the new brand campaign Mobile Excitement (ME) is more youth focused and revolves around the growing need amongst consumers for mobility. Speaking on the occasion Mr. Ajai Chowdhry, Chairman & CEO, HCL Infosystems Ltd said, Ever since our inception, we have understood our customer needs and have been amongst the pioneers in fulfilling them. The new HCL ME campaign has been made keeping the requirements of todays onthe-go customers who are always on the move seeking seamless connection to the virtual world. With so much content and paucity of time, their focus is on MOBILITY always. We are hopeful that the renewed marketing focus will help us establish a deeper connect with our consumers and further consolidate our position in todays fast paced market. HCL also introduced one of the worlds first laptops with in-built One Touch service & support, that offers service and self recovery features like One Touch support and One Touch

Recovery incorporated into the product. HCLs new range of laptops comes with innovative features like SPLIT ME where one can share one's data without worrying about the size of the file and LOCK ME that prevents data theft from the system. This feature ensures that the data cannot be copied on to external storage devices, USB memory sticks, CD optical disk drives, hard disk drive without getting authorization from the user, Secure ME a tool which can be used to lock any application installed on the PC e.g. Internet Browser, Adobe, Power point etc, another feature Encrypt ME allows the user to encrypt their data and avoids unauthorized access of the data, providing assurance against data theft. Apart from this, the new range of laptops also comes with features like face recognition and finger print recognition.

Today, every aspect of our society is changing in a profound way, including consumer demands. The new generation of Indian youth is well equipped to understand and leverage the power of knowledge to decide what is best for them. According to the IMRB survey conducted amongst collegiate and young executives in the age group of 18-29 years in key cities of India like Delhi NCR, Kolkata, Ahmadabad, Pune, Vijayawada & Mangalore, the youth today is highly individualistic and impatient, and craves for entertainment in all forms whether it is gaming or music.

The survey also says that collegiates comprise 1/5th of the laptop market and that this section of the laptop market has seen sharpest increase in penetration across user segments. Therefore, HCL's ME programme has been designed around the concept its all about MEa to reach out to one of the largest emerging consumer groups the youth & the young executives.

With the launch of HCL ME, HCL aims to address the market in the target segment. The HCL ME TVC will be aired on all leading channels starting Thursday, September 24, 2009 and the new range of HCL ME Laptops will be available in stores across the country.

Made-in-India strategy works for HCL

Even as everyone was all set to bury Indian PC brands, HCL Insys came out with a stellar performance that proved that Indian brands still had the ability to win on hometurf. Theres a lot that other Indian players could learn from HCL Insys strategy in PC and other segments. Gaurav Patra explains what this IT major got right, and analyses future prospects in the light of shifting trends in the business .J u s t w h e n t h e w h o l e P C industry was in the process of a recession and a n a l ys t s were

screaming negative growth rates, HCL Infos ystems surprised quite a few, w h e n i t registered a 27 percent growth rate over the last year. The company gained the No 1 PC desktop vendor ranking for the year 2001, with a market share of 8.6 percent. In fact, today it is one of the few Indian brands that continue to hold their own against the MNC brigadeZeniths the only other name that comes to mind. From a company that used tosell boxes, HCL Insys has now emerged as a leading systems integrator, selling solutions, while also offering IT services and consulting services. The HP-Compaq merger could turn out to be an advantage for HCL because one-plus-one never equals two in this business. It is interesting to trace the transformation of a company that was earlier identified by the hardware tag to an end-to-end solutions provider, with interests across domains such as software, networking and consulting. A look at the strategy followed by HCL Insys throws interesting pointers for the rest of the industry. The number one tag on the PCfront (with the HP-Compaq deal, HCL goes back to No 2 now) has come as a result of clever marketing strategies, and aggressive expansions. HCL has always been very strong on the government front. But when things started going bad on other frontsfor instance, when the metros were showing stagnation rates, HCL Insys went ahead and expanded aggressively in B&C class cities to boost volumes. In addition, the company initiated schemes like consumer finance to lure the reluctant PC buyer.

Other strategies
In line with offering competitive pricing keeping in mind the price-sensitive nature of theIndian market, HCL Insys has made significant investments in the Professional ServicesOrganisation (PSO), the Support Services Organisation (SSO) and in its manufacturing plants at Noida and Pondicherry. The build -up of the services business (both PSO and S S O ) enables HCL Insys to offer complete solutions as well as r aise

manufacturingv o l u m e s i n l i n e w i t h i n t e r n a t i o n a l s t a n d a r d s . T h e i n c r e a s i n g f o c u s o n i n t e g r a t e d enterprise solutions has also strengthened H C L I n f o s ys t e m s S S O s c a p a b i l i t i e s i n supporting installation types ranging from single to large, multi-location orders. TheSSO, which comprises of a direct support force of over 800 members, is operational at 150 locations across the country and is the largest such force in the IT business. One more important arm in HCL Insys strategy been the Frontline division that markets national and international brands of computer systems (including T o s h i b a n o t e b o o k s ) a n d p e r i p h e r a l s w i t h i n t h e c o u n t r y. W i t h i t s e x t e n s i v e n e t w o r k o f 8 0 0 resellers across 300 cities, the division actively promotes th e penetration of PCs in thehome and the small office/home office (SOHO) segments.

SWOT ANALYSIS OF HCL INFOSYSTEMS SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.

STRENGTH

One of the most important strength of HCL computers is its Media center edition, which is very unique in computer industry. The price range of HCL computers is very well planned; it suits for both economical class consumers as well as executive class consumers. Pro-active understanding of the market demand. Reach in terms of geography. Flexibility in fulfilling the customers needs. has a very strong presence in the education and home market

WEAKNESS

The biggest weakness of HCL computers is that the company frequently changes the prices of computers. The company has failed to maintain good relationship with its retailers and distributors The company spends less money in sales promotion activities.

OPPORTUNITY

HCL hardly garners any revenues from sales of packaged software. It is not that the HCL group cannot create a product or that it cannot sell itin fact, it has technical expertise to

create any software product and has pockets deep enough with skilled resources to market the same. Groups spending on R&D is poor.

THREATS

Competition from many players Other players "copying" the company's concepts and ideas and being able to market it better