HCL Infosystems, the PC maker competes with the multinational firms such as Dell and HP, will phase off their business of manufacturing in the subsequent some years to enhance the margins and to enhance the efficiency of organization. The company focuses to strengthen the services as well as verticals of distribution.
According to Harsh Chitale, the MD and CEO of HCL infosystems “We would be stopping the manufacture. The distribution these days does great distribution of the PCs of various brands. They are in the distribution of PC and in the post sales services however will not manufacture the branded products of HCL in the future time”
On the particular timeline, Chitale also mentioned that the plan is happening however “manufacturing is just not something which keeps us awake, it’s not a part of the HCL story”. The business of PC accounts for 8 per cent of HCL Infosystem’s complete revenues and it has been under the pressure for time now as factors such as phablets and tablets are searching more takers.
In earlier some years, many PC makers in the country have even incurred losses because of rupee’s fluctuation which is against various other currencies, particularly US dollar. It has hurt PC business of India as it has low-margin and about 90-95 per cent of components are basically imported.
This company has about 15,000 employees who are working for full-time. Chitale also added that “out of it less than 3% per cent employees are in the department of manufacturing, on the other hand few will immediately locate opening in the repair services, the outstanding people could also lose their jobs which would be less than natural rate of monthly attrition.
However, move is the part of efforts of firm’s restructuring which focus on the growth areas such as distribution and services. The HCL Infosystems has also transferred their solutions, learning business and services to completely own the subsidiaries – HCL Services, HCL Learning and HCL Infotech.
It will even bring down the conflicts in different units of business of the company. HCL was created in year 1976, which was the best brand of PC in country prior to losing the ground of foreign players such as Dell and Hewlett-Packard.
The group of HCL is the $6.3 billion of enterprise which comprises 2 listed of company’s HCL Infosystems and HCL Technologies.