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HCL Infosystems to cease manufacturing PCs

Posted: 22 Nov 2013     Print Version  Bookmark and Share

Keywords:PC  manufacturing  distribution 

India's leading IT company HCL Infosystems has decided to exit PC manufacturing business. As part of a company-wide restructuring, HCL plans to phase off its manufacturing business over the next three years. The company said it aims to focus more on services and distribution verticals.

"We will be stopping manufacturing. My distribution today does lot of distribution of PCs of multiple brands. We will be in PC distribution and in after sales services but will not manufacture HCL branded products sometime in the future," HCL Infosystems CEO and managing director Harsh Chitale told PTI.

On specific timeline, he said the plan is underway but "manufacturing is not something that is keeping me awake, it's not part of HCL story now."

The PC business accounts for just 8 per cent of HCL Infosystem's overall revenues. The company has been feeling the pressure as customers are now adopting new form factors such as tablets and phablets.

HCL Infosystems has a total of 15,000 employees, out of which manufacturing is only about three per cent. Chitale said, "Of this less than three per cent are in manufacturing, while some will immediately find opening in repair services, the remaining people who could lose their jobs would be less than the natural monthly attrition rate."

With global PC industry already struggling, this seems to be a lost opportunity for HCL as it faces stiff competition from many other global brands, mainly from China. However, the company's decision come at a time when the government has become more aggressive in promoting Made-in-India products and thus, encouraging domestic manufacturing of electronic products.

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