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    INFOSYSTEMS LIMITED COMPANY PROFILE

    Born in 1976, HCL has a 3 decade rich history of inventions and innovations. In 1978, HCL

    developed the first indigenous micro-computer at the same time as Apple and 3 years before

    IBM's PC. During this period, India was a black box to the world and the world was a black box

    to India. This micro-computer virtually gave birth to the Indian computer industry. The 80's saw

    HCL developing know-how in many other technologies. HCL's in-depth knowledge of Unix led

    to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and

    HP.

    HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software

    services arena. During the last eight years, HCL has strengthened its processes and applied its

    know-how, developed over 28 years into multiple practices - semi-conductor, operating systems,

    automobile, avionics, bio-medical engineering, wireless, telecom technologies, and many more.

    Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO

    operation, and manages the network for Asia's largest stock exchange network apart from

    designing zero visibility landing systems to land the world's most popular airplane.

    HCL Infosystems Limited' manufacturing facilities are ISO 9001 - 2000 & ISO 14001 certified

    and adhere to stringent quality standards and global processes. With the largest installed PC base

    in the country, four indigenously developed and manufactured PC brands - 'Infiniti', 'Busybee'

    'Beanstalk' and 'Ezeebee' - and its robust manufacturing facilities; HCL Infosystems Limited

    aims to further leverage its dominance in the PC market. It has been consistently rated as Top

    player in PC industry by IDC .The 'Infiniti' line of business computing products is incorporated

    with leading edge products from world leaders such as Intel. A fully integrated and business-

    ready family of servers and workstations, the 'Infiniti Global Line' is targeted at medium and

    large companies to help them to manage their enterprise-related applications. It has considerable

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    dominance in verticals like Finance, Government, and Education & Research.

    The Channel Business of HCL Infosystems Limited has an extensive network of over 2500+

    resellers across 300 locations. It has actively promoted the penetration of PCs in the home and

    the small office/home office (SOHO) segments, through Beanstalk, Ezeebee & Busybee PCs and

    ToshibaLaptops.

    HCL Infosystems Limited has two focused business units. While HCL Infosystems Limited

    concentrates on the IT products, solutions and related services business, HCL InfiNet focuses on

    the rapidly growing communication and imaging products, solutions and services industry.

    HCL InfiNet, with a presence in more that 35 cities, has the ability to service around 250 cities in

    its catchments area. It provides corporate networking services like Virtual Private Network,

    Broadband Internet Access, Hosting & Co-location services, designing & deploying Disaster

    Recovery Solutions & Business Continuity solution, Application Services, Managed Security

    Services & NOC Services over its state-of-the-art IP network to over 200 corporate. With the

    Office Automation (OA) Division being part of it, HCL InfiNet now has an exclusive sales and

    support partnership with Toshiba Corporation, Japan, for its photocopier products. The product

    portfolio covers a range of other office automation and communication products through

    alliances with world leaders - including Duprinters from Duple, data projectors from In Focus,

    Telecommunication solutions from Samsung and Ericsson and mobile communication products

    from Nokia. HCL Infinite Ltd. has a strong and dedicated retail network of Nokia Professional

    Centers, Nokia Priority Dealers and Re-distribution Stockiest across the country.

    HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For

    over quarter of a century, we have developed and implemented solutions for multiple market

    segments, across a range of technologies in India. We have been in the forefront in introducing

    new technologies and solutions.

    In the early 70s a group of young and enthusiastic and ambitious technocrats embarked upon a

    venture that would make their vision of IT revolution in India a reality. Shiv nadir and five of his

    colleagues got together and 1975 set up a new company MICROCOMP to start with; they started

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    to capitalize on their marketing skills. Micro comp marketed calculators and with in a few month

    of starting operation, the company was out selling its major competitors.

    BRAND PORTFOLIOS OF HCL INFOSYSTEMS

    Beanstalk neo

    HCL Ezeebee

    HCL Busybee

    HCL beanstalk

    Notebook PC from Toshiba

    HCL printer

    WEBCAM

    RP2 SYSTEM

    UPS

    HCL COLOUR TFT

    HCL PLAY TVPRO

    neo cam (Digital camera)

    neo Pod ( Digital Music Player)

    Real server

    Vision Statement

    We Shall be the most preferred employer and principal taking leading edge IT products and

    services to the masses through sustained excellence.

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    Mission Statement

    We shall increase the shareholders value by improving the PAT through free cash flow,

    reducing the BR cycle, inventory levels, wastage.

    Quality Policy Statement

    We will deliver defect-free products, services and solutions to meet the requirements of our

    external and internal customers the first time, every time.

    Management Objective

    To fuel initiative and foster activity by allowing individuals freedom of action and innovation in

    attaining defined objectives.

    People Objective

    To help HCL Insys people share in the companys success, which they make possible; to provide

    job security based on their performance; to recognize their individual achievements and to help

    them gain of satisfaction and accomplishment from their work.

    CCoorree VVaalluueess

    We shall Uphold the dignity of individual

    We Shall Honour all commitments

    We Shall be Committed to quality, Innovation and growth in every endeavor

    We Shall be responsible Corporate Citizens.

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    ORGANISATION STRUCTURE

    FrontlineHead

    Regions Marketing Support Logistics Accounts HRD IT

    Entity Head

    BusinessHead

    Direct

    Team

    Indirect

    Team

    Accounts Logistics TSS Head

    Channel

    Consultant

    Technical

    Specialist

    Operations

    Team

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    MAJOR PLAYERS IN THE MARKET

    HCL

    DELL

    IBM

    SAHARA

    APPLE

    HP-COMPAQ

    ZENITH

    ACER

    INTEX

    SONY

    PCS

    LENOVO

    MARKETING STRATEGIES

    HCL Infosystems Limited (HCL Insys) is Indias technology integration company. Over the

    years, HCL Insys has positioned its business operations to fulfill its vision statement: Together

    we create enterprises of tomorrow. The overarching theme for the companys swift progression

    into the software and services arena, in India and globally, is evolving. Signifying a state of

    constant growth, the evolve theme is visible in the many ways that HCL Insys has undergone a

    metamorphosis into becoming a complete IT solutions company.

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    Within this, the company has conceptualized the Net. Strategy to address the e-commerce

    market. HCL Insys has added both Internet-focused solution and skill sets. For this, it has

    acquired critical expertise in e-commerce development tools. It has also developed the ability to

    integrate e-commerce infrastructure with enterprise application such as SAP, CRM and SCM.

    Infrastructure essentials such as complex networking, network management, security and post

    implementation facilities management also form part of this strategy.

    HHCCLL IInnssyyss NNEETT..SSTTRRAATTEEGGYYDOMAIN

    KNOWLEDGEBUSINESS

    MODELLING

    TELECOMSERVICES

    INDUSTRY

    BANKING &

    INSURANCEMANUFACTURING GOVT

    TOOLS

    PRODUCTSAPPLICATION

    JAVA++, MICROSOFT E.COM

    SAP,CRM,SCM/INTEGRATION & POST IMPLEMENTATIONSUPPORT KNOWLEDGE MANAGEMENT-

    E.COM.,INTERNET,BANKING FILENET

    SECURITY

    INFRASTRUCTU

    RE

    NETWORK

    MGMT.SOLUTIONS

    NETWORK

    ARCHITECTU

    RE

    FACILITIES MEMT.

    Yet another significant movement in the Company was globalization. To become a dominant

    player in providing global IT services, HCL Insys has reorganized and consolidated its hardware

    and services business. The first step towards this was the acquisition of the assets of HCL Info

    solutions and HCL Peripherals, and the customer support activities, related products and human

    resources of HCL Office Automation in mid-1998.

    In 1999, HCL Insys completed acquisition of FEC Singapore Pvt. Ltd. The Companys

    acquisition strategy, too, maps into building a long-term and sustainable growth path based on

    the high-margin, high value-add IT services sector. In fiscal 2000, the companys focus was on

    organic growth as well as acquisitions. The next step was expanding its reach globally.

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    For this, HCL Insys has set up five overseas subsidiaries-in the US, the UK, Singapore, Australia

    and Malaysia.

    The menu of HCL Insys global services broadly covers IT consulting and professional services

    in the area of vertical applications, technology integration, ERP implementation and software

    development. This also includes a complete portfolio of systems and network services for

    development. This also includes a complete portfolio of systems and network services for

    Facilities Management, Helpdesks, Sysytems Supports and network and Internet

    Implementation.

    HCL Insysglobal customers include Samsung, Government of Singapore, and AMAL insurance

    Jurong Port in Singapore and Malaysians BSN commercial bank, SIA, DBS bank, Maybank life

    assurance charted semiconductors, Asia Matsushita and Shell Malaysia. Some of its global

    customer in the government sector is Inland Revenue authority of Singapore, civil aviation

    authority of Singapore, Singapore power, ministry of education, health and national

    development, telecom authority of Singapore and penang state govt.

    HCL Insys chosen platform of total technology integration lends itself to some very significant

    alliances with the global leaders. Among its partner are HP for high end AISCE/UNIX services

    and workstation and HP Open view network management solution; Intel for PC and PC server

    building blocks; Microsoft,novell and SCO AG solutions; Red hat ;Linux; Samsung; Pivota for

    CRM solution and ORACLE Sybase and Informix for RDBMS platform.

    Today the company has aligned its operations into five entities that offer seamless linkages for

    the customers seeking entry into the wired world through total the. Integration solution ands

    services. A brief profile of each of these is as below:

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    KEY PARTNERSHIPS

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    Product OfferingsProduct Offerings

    Not to scale

    ImagingProducts

    TelecomProducts

    Laser Printers

    Interactive white boards

    Range of Mono ,ColorLaser printers

    Presentation &DocumentationProducts

    InteractivePresentation

    And RoomReservation

    All ranges of NokiaGSM Cellular Phones

    PBX, KTS, DECT Cordless,Call Centre, IP Telephony,WLAN, Unified Messaging Telecom Solutions

    GSM Mobile phones &accessories

    Copiers,Projectors,Plasma,Data Walls

    AV SystemIntegration

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    HCL Unveils HCL Mobile Excitement

    New Marketing Strategy Focused on Todays Mobile Consumer-

    - Initiative includes new HCL ME range of leaptops, re-branding of all HCL Digilife stores

    nationally and a brand new TVC and logo on the theme of mobility -

    New Delhi, 24th September, 2009:HCL Infosystems Ltd, one of Indias premier hardware,

    services and ICT system Integration companies today announced the launch of HCL Mobile

    Excitement, one of the Companys largest marketing initiatives since the inception of HCL in

    1976.The multi dimension initiative includes more focused marketing strategy towards todays

    nomadic customer and saw the launch of a new logo and TV commercial focused around

    mobility and lifeonthe-go.

    Based on the findings of a survey carried out by research firm

    IMRB on todays consumer, HCL has launched this new

    marketing campaign ME to establish a more youthful and

    vibrant image of the brand to ensure a stronger connect with

    NextGen consumers. The Companys new TVC and logo, an integral part of the new brand

    campaign Mobile Excitement (ME) is more youth focused and revolves around the growing

    need amongst consumers for mobility.

    Speaking on the occasion Mr. Ajai Chowdhry, Chairman & CEO, HCL Infosystems

    Ltdsaid, Ever since our inception, we have understood our customer needs and have been

    amongst the pioneers in fulfilling them. The new HCL ME campaign has been made keeping the

    requirements of todays onthe-go customers who are always on the move seeking seamless

    connection to the virtual world. With so much content and paucity of time, their focus is on

    MOBILITY always. We are hopeful that the renewed marketing focus will help us establish a

    deeper connect with our consumers and further consolidate our position in todays fast paced

    market.

    HCL also introduced one of the worlds first laptops with in- built One Touch service &

    support, that offers service and self recovery features like One Touch supportand One Touch

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    Recoveryincorporated into the product. HCLs new range of laptops comes with innovative

    features like SPLIT ME where one can share one's data without worrying about the size of the

    file and LOCK ME that prevents data theft from the system. This feature ensures that the data

    cannot be copied on to external storage devices, USB memory sticks, CD optical disk drives,

    hard disk drive without getting authorization from the user, Secure ME a tool which can be used

    to lock any application installed on the PC e.g. Internet Browser, Adobe, Power point etc,

    another feature Encrypt ME allows the user to encrypt their data and avoids unauthorized access

    of the data, providing assurance against data theft. Apart from this, the new range of laptops also

    comes with features like face recognition and finger print recognition.

    Today, every aspect of our society is changing in a profound way, including consumer demands.

    The new generation of Indian youth is well equipped to understand and leverage the power of

    knowledge to decide what is best for them. According to the IMRB survey conducted amongst

    collegiate and young executives in the age group of 18-29 years in key cities of India like Delhi

    NCR, Kolkata, Ahmadabad, Pune, Vijayawada & Mangalore, the youth today is highly

    individualistic and impatient, and craves for entertainment in all forms whether it is gaming or

    music.

    The survey also says that collegiates comprise 1/5th of the laptop market and that this section of

    the laptop market has seen sharpest increase in penetration across user segments. Therefore,

    HCL's ME programme has been designed around the concept its all about MEa to reach out

    to one of the largest emerging consumer groups the youth & the young executives.

    With the launch of HCL ME, HCL aims to address the market in the target segment. The

    HCL ME TVC will be aired on all leading channels starting Thursday, September 24, 2009 and

    the new range of HCL ME Laptops will be available in stores across the country.

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    Made-in-India strategy works for HCL

    Even as everyone was all set to bury Indian PC brands, HCL Insys came out with a

    stellar performance that proved that Indian brands still had the ability to win on hometurf.

    Theres a lot that other Indian players could learn from HCL Insys strategy in PC and other

    segments. Gaurav Patra explains what this IT major got right, and analyses future

    prospects in the light of shifting trends in the business .Just when the whole PC

    indus t ry was in the p rocess o f a recess ion and ana lys t s were

    sc reaming nega t ive g rowth ra tes , HCL In fosys tems su rpr i sed qu i te a few,

    when it registered a 27 percent growth rate over the last year. The company gained

    the No 1 PC desktop vendor ranking for the year 2001, with a market share of 8.6

    percent. In fact, today it is one of the few Indian brands that continue to hold their own against

    the MNC brigadeZeniths the only other name that comes to mind. From a company that used

    tosell boxes, HCL Insys has now emerged as a leading systems integrator, selling solutions,

    while also offering IT services and consulting services. The HP-Compaq merger could turn

    out to be an advantage for HCL because one-plus-one never equals two in this business.

    It is interesting to trace the transformation of a company that was earlier identified by the

    hardware tag to an end-to-end solutions provider, with interests across domains such as

    software, networking and consulting. A look at the strategy followed by HCL Insysthrows interesting pointers for the rest of the industry. The number one tag on the

    PCfront (with the HP-Compaq deal, HCL goes back to No 2 now) has come as a

    result of clever marketing strategies, and aggressive expansions. HCL has always been very

    strong on the government front. But when things started going bad on other frontsfor instance,

    when the metros were showing stagnation rates, HCL Insys went ahead and

    expanded aggressively in B&C class cities to boost volumes. In addition, the

    company in it ia ted schemes like consumer finance to lure the reluctant PC buyer.

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    Other strategies

    In line with offering competitive pricing keeping in mind the price-sensitive nature of theIndian

    market, HCL Insys has made significant investments in the Professional ServicesOrganisation

    (PSO), the Support Services Organisation (SSO) and in its manufacturing plants at

    Noida and Pondicherry. The build-up of the services business (both PSO andSSO)

    enab les HCL Insys to o f fe r comple te so lu t ions as we l l a s ra i se

    m an uf ac tu ri ng v o l u m e s i n l i n e w i t h i n t e r n a t i o n a l s t a n d a r d s . T h e i n c r

    e a s i n g f o c u s o n i n t e g r a t e d e n t e r p r i s e s o l u t i o n s h a s a l s o s t r e n g t h e n e d H

    C L I n f os ys t ems SSO s ca pa bi li ti es in supporting installation types ranging

    from single to large, multi-location orders. TheSSO, which comprises of a direct

    support force of over 800 members, is operational at150 locations across the country

    and is the largest such force in the IT business.

    One more important arm in HCL Insys strategy been the Frontline division that

    marke t s na t iona l and in te rna t iona l b rands o f compute r sys tems ( inc lud ing

    Tosh ibano tebooks) and pe r iphera l s wi th in the coun t ry . Wi th i t s ex tens ive

    ne tw or k of 80 0resellers across 300 cities, the division actively promotes th e

    penetration of PCs in thehome and the small office/home office (SOHO) segments.

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    SWOT ANALYSIS OF HCL INFOSYSTEMS

    SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of

    planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses,

    opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and

    threats are external factors.

    STRENGTH

    One of the most important strength of HCL computers is its Media center edition, which

    is very unique in computer industry.

    The price range of HCL computers is very well planned; it suits for both economical

    class consumers as well as executive class consumers.

    Pro-active understanding of the market demand.

    Reach in terms of geography.

    Flexibility in fulfilling the customers needs.

    has a very strong presence in the education and home market

    WEAKNESS

    The biggest weakness of HCL computers is that the company frequently changes the

    prices of computers.

    The company has failed to maintain good relationship with its retailers and distributors

    The company spends less money in sales promotion activities.

    OPPORTUNITY

    HCL hardly garners any revenues from sales of packaged software. It is not that the HCL

    group cannot create a product or that it cannot sell itin fact, it has technical expertise to

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    create any software product and has pockets deep enough with skilled resources to

    market the same.

    Groups spending on R&D is poor.

    THREATS

    Competition from many players

    Other players "copying" the company's concepts and ideas and being able to market it

    better