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HCL plans acquisitions

HCL plans to get into the business of Internet working and enterprise management services. In addition, the technology major wishes to enter enterprise application rollout services, e-commerce infrastructure application services and support system services for the telecommunication sector.

T O D A Y

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Sources say that the many operations outlined at present by HCL would also include support systems for other areas such as call centres, help desk systems and network management systems.

The international major will also get into re-engineering services for various networks.

Its proposal states that acquisitions or buyouts is one of the ways it would get around setting up operations, said sources.

Obviously, if that does not work out, it would set up on its own from scratch, sources added. On approval, "the proposed wholly owned subsidiary would in turn set up or acquire software development centres in India as STP units.''

In addition, 100 per cent export oriented units are not ruled out, sources said. They claimed that HCL, in keeping with the trend, has also decided that its operations and services will not cater only to the domestic market. Its intentions are to look beyond and at the export market that has a huge potential.

The investments, for now, are small, but in line with the trends in the infotech industry. The proposal says that $5 million will be infused into its Indian subsidiary over three years.

There is no clear schedule, said sources, indicating that the infusion would depend on how its acquisition plan takes shape. So, flexibility is being maintained.

However, broadly, HCL, through its Bermuda based outfit, will be bringing in Rs 100 million in the first year.

The final investment, by the third year, will stand at Rs 210 million.

Sources say that HCL's application has been approved by the Foreign Investment Promotion Board on the recommendation of the Department of Electronics. It has also been cleared by the industry minister.

- Compiled from the Indian media

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