Financial Daily from THE HINDU group of publications
Monday, Jan 28, 2002
Corporate - Mergers & Acquisitions
HCL Insys to complete software co buy by June
NEW DELHI, Jan. 27
COMPUTING major, HCL Infosystems, will complete its proposed acquisition of a software company before June this year, a top company official has said.
"June is my deadline for the acquisition. We will complete it by then,'' Mr Ajai Chowdhry, Chairman and CEO, said recently after announcing a tie-up with the Department of Posts to market various products through post offices.
Mr Chowdhry said that in order to expedite the process of acquisition, the company has strengthened the team in the US currently scouting for suitable targets.
He had earlier stated that HCL Infosystems was looking for a company engaged in areas such as e-commerce, SAP implementation, banking and finance to strengthen its software business.
Predominantly a personal computer maker, HCL Infosystems has been aggressively targeting the high-margin software business to shore up its bottomline.
Through a strategy called `Beyond the Box', the company expects to earn half of its total turnover from software and other services over a five-year period.
For the quarter ended December 31, 2001, the Delhi-based company posted a net profit of Rs 14.6 crore on net sales of Rs 271.85 crore.
The company has also forayed into call centre business through its Internet service providing subsidiary, HCL Infinet, to build new revenue streams.
HCL Infosystems views this move as a logical expansion since it is not new to the call centre consulting business and has experience in setting up many call centres in the country.
The technical call centre of the company caters to both domestic and international clients by providing high-end technical support.
Founded in 1976, HCL Infosystems today has three software export factories and manufacturing facilities.
It has also established presence in the US, the UK, Australia, Singapore, Malaysia and Canada.
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