HCL146;s Comeback News Archive News

Shiv Nader is one tycoon who must be extremely pleased that it is now adequately clear that he is the undisputed boss of India8217;s IT mar...

Written by Dilip Cherian

June 9, 2003 12:00 AM IST

4 min read

Shiv Nader is one tycoon who must be extremely pleased that it is now adequately clear that he is the undisputed boss of India8217;s IT market yet again, despite changes like the Hewlett-Packard and Compaq merger that created a conglomerate with huge muscle power in the domestic market. The HCL group, which is the first transnational company in India, has a presence in every sphere of the IT industry. Considering it began at a time when India had only about 250 computers, the company has now grown to have 30 offices in 19 countries worldwide, earning revenues of 700 million. It has been a long respite for the tycoon who once headed the largest software company in India, to regain his old position. The big stumbling block to HCL8217;s market dominance has been less due to global players and more due to the huge grey market that constantly snipes away, on the basis of huge price advantages in the days of higher duty-levels, at the organised players. It may be mere coincidence, but one of the advantages that the company has scored over the years is the intensification of the crackdown on the illegal grey market players. For example the recent busting of the biggest computer racket in the city, led to an increase in prices in the grey market due to panicky dealers who removed their stocks, this will help companies like HCL, who will now stand a better chance to compete in the market. Given the Indian consumers normal penchant for global brand names, it is particularly significant that Nader has notched up a dignified nine per cent market share. Perhaps it is the fact that the tycoon8217;s computers are generally more aggressively priced than similar models from the global stables. What ever be the explanation, there is no getting away from the fact that this is one company that has become more aggressive as the days go by. Which given the character of its tycoon is not surprising.

Boundless energy

CII president Anand Mahindra has already swung enough clout to demonstrate his abilities in the routine areas. But he is going further. He recently sent a 25-member delegation to Kuwait to work along with the UN and other international agencies towards the reconstruction of Iraq. Mahindra is convinced that India is most competitive, well placed and stands to gain a great deal in Iraq and much of his conviction has worn off on companies who have jumped at the opportunity and some have already got themselves deals in Iraq. The reason being that most Indian companies had already been working there on projects, which were shut down temporarily when the war began. So now they are simply getting back their old jobs. Indian firms like BHEL, Ashok Leyland, Jindal Iron and Steel, L038;T, Mahindra and Mahindra and even oil companies like IOC, are some of the 40 companies heading for Iraq. Thanks to Mahindra they have received very warm welcome so far, along with promises that business contracts with India would be honoured. The Harvard graduate didn8217;t stop at that, he recently convinced industrialists of the likes of hard-nosed Ratan Tata and Adi Godrej to examine the possibility of making new investments in West Bengal making the CM there a very happy man. The omnipresent tycoon8217;s ability and confidence is unmatchable, from Cannes where he hawked Bollywood to Iraq, the man is determined to prove himself again and again.

Dilip Cherian, runs a public relations firm Perfect Relations. He is an economy watcher and tycoon tracker. The people he writes about are not his clients. Send your dope to dilipcherianhotmail.com

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