History and Growth of HCL Enterprises - A Case Study
🔍Insights
Hindustan Computers Limited(HCL) is a multinational IT services and consulting company headquartered in Noida, Uttar Pradesh, India. HCL is a pioneer of modern computing with many firsts to its credit, including the introduction of the 8-bit microprocessor-based computer in 1978, well before its global peers.
Today, the HCL enterprise has a presence across varied sectors that include technology, healthcare, and talent management solutions, and comprises three subsidiaries- HCL Infosystems, HCL Technologies, and HCL Healthcare.
HCL - History
HCL - Growth
HCL - Subsidiaries & Acquisitions
HCL - History
HCL was established in 1976, as one of India‘s original IT startups. Originally started for making personal computers, the company was established by a group of six engineers, all former employees of Delhi Cloth & General Mills, led by Shiv Nadar.
HCL Group has formed its first three subsidiaries:
- HCL Technologies
- HCL Infosystems
- HCL Healthcare
Although the company has tried to stay focused on hardware, via HCL Technologies, software and services are the main focus. In November 1991, a company called HCL Overseas Limited was incorporated as a provider of technology development services. It received the certificate of commencement of business on 10 February 1992 after which it began its operations. Two years later, in July 1994, the company name was changed to HCL Consulting Limited and eventually to HCL Technologies Limited in October 1999.
HCL TalentCare is the fourth and latest venture of HCL Corporation.
HCL - Growth
In the year 2022, HCL Enterprises generated a revenue of $1,1.48 billion. The company's revenue from operations for Q4 FY22 is $2.9 billion. HCL employed more than 208,877 professionals in 52 countries.
The company went public on 10 November 1999, with an issue of 1.42 crore shares, valued at Rs4 each.
During 2000, the company set up an offshore development center in Chennai, India, for KLA-Tencor Corporation.
In 2002, it acquired Gulf Computers Inc. On 1 July 2019, HCL Technologies acquired a few IBM products selectively. In the areas of R&D, sales, delivery, marketing, and support, HCL Technologies took full ownership of BigFix, AppScan, Commerce, Connections, Digital Experience, Notes Domino, and Unica.
HCL announced on 16 June 2020 that it had commenced operations in Sri Lanka. The company created 1,500 jobs in the country within the first 18 months of operations.
HCL - Subsidiaries & Acquisitions
HCL Technologies is currently a subsidiary of Vamasundari through a chain of intermediary companies. Vamasundari (Delhi) is owned by Shiv Nadar and in turn holding the majority of shares in most companies in the HCL group.
Between 1991 and 1999, the company expanded its software development capacities to US, European and APAC markets. In July 2018 US-based Actian was acquired by HCL Technologies and Sumeru Equity Partners for $330 million.
On 23 July 2015, CSC (NYSE: CSC) and HCL Technologies announced a joint venture agreement to form a banking software and services company, Celeriti FinTech.
In October 2017, IBM struck a strategic partnership with HCL Technologies that had the latter firm take over the development of the IBM Lotus Software's Notes, Domino, Sametime, and Verse collaboration tools.
In May 2018, HCL Technologies announced that it has joined hands with Transportation Alliance (BITA), known for incorporating blockchain in the transportation industry, to implement blockchain.
Today, HCL Technologies operate in 52 countries, including its headquarters in Noida, India.
- It has establishments in Australia, China, Hong Kong, India, Indonesia, Israel, Japan, Malaysia, New Zealand, Saudi Arabia, Singapore, South Africa, the United Arab Emirates, and Qatar.
- In Europe, it covers Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Sweden, Switzerland, Portugal, and the United Kingdom.
- In the Americas, the company has offices in Brazil, Canada, Mexico, Puerto Rico, Guatemala, and the United States.
HCL Technologies
HCL Technologies is a next-generation global technology company that helps enterprises reimagine their businesses for the digital age. Through its worldwide network of R&D facilities and co-innovation labs, global delivery capabilities, and over 150,000+ ‘Ideapreneurs’ across 49 countries, HCL delivers holistic services across industry verticals to leading enterprises, including 250 of the Fortune 500 and 650 of the Global 2000.
HCL Technologies began as the R&D Division of HCL Enterprise, a company that was a contributor to the development and growth of the IT and computer industry in India. HCL Enterprise developed an indigenous microcomputer in 1978, and a networking OS and client-server architecture in 1983. On 12 November 1991, HCL Technologies was spun off as a separate unit to provide software services.
HCL Infosystems
HCL Infosystems is a Small Cap company, having a market cap of Rs 251.85 Crore operating in the IT - Hardware sector. It is a System Integration and Distribution company. It provides the distribution of technology, mobility, and consumer products. This part of HCL was formed in 1976 to produce calculators.
In June 2015, PC maker Dell announced a strategic distribution partnership with HCL Infosystems. For the quarter ended 30-06-2020, the company has reported a Consolidated sales of Rs 105.69 Crore, down 53.59 % from last quarter Sales of Rs 227.71 Crore and down 84.48 % from last year same quarter Sales of Rs 680.87 Crore Company has reported net profit after tax of Rs 36.86 Crore in the latest quarter.
HCL Healthcare
HCL Healthcare, in affiliation with Johns Hopkins Medicine International, is the healthcare delivery arm of HCL Group. Starting with the country's first nationwide networked multispecialty clinics, HCL Healthcare aims to provide the whole continuum of care for chronic and acute diseases.
HCL Healthcare is determined to be the trusted long term care partner for people in health or illness.
Arbaz Sayed
HCL TalentCare
HCL TalentCare is the newest business venture of the HCL Corporation. It is a global talent-solutions company offering integrated products and services to meet the growing demand for quality talent. The company's focus is to create development solutions that offer a career launch pad for students and a ready pool of employable talent for enterprises in the IT, Banking, Insurance and Healthcare sectors. HCL TalentCare is headquartered in Chennai and operates world-class training campuses in Hyderabad and Chennai.
HCL has also been involved in criticism and litigation for a long time, involving the H-1B visa program to replace U.S. workers with cheaper foreign labor, including the Disney collusion lawsuit, and the heavily reported case of replacing the University of California's San Francisco Medical Center IT workers.
Conclusion
HCL was once a garage start-up and today it's a global conglomerate. HCL was established in the year 1976 as one of India’s original IT garage start-ups. HCL is a proud corporation for its long and exciting journey from startup to become a corporation in the IT industry. It is also confident of reaching new heights in the future. All these years HCL was the face of the Indian IT industry by conscientiously setting high business standards. The goal of providing sustainable, world-class products, solutions, and services; a feat that has helped the corporation touch the lives of millions in Indian and abroad.
FAQs
What is full form of HCL?
HCL stands for Hindustan Computers Limited.
What HCL company do?
HCL Technologies Ltd is a leading global IT services company. The company is primarily engaged in providing a range of software services business process outsourcing and infrastructure services.
What is the rank of HCL in India?
HCL Technologies is 8th most valued IT services company in India.
Where is the headquarters of HCL?
HCL Technologies is headquartered in Noida, India.
Who is the founder of HCL Technologies?
Shiv Nadar and Arjun Malhotra are the founders of HCL Technologies.
When was HCL Enterprise founded?
HCL Enterprise was founded in 1976.
Who is the CEO of HCL Technologies?
C Vijayakumar is the President and Chief Executive Officer of HCL Technologies.
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