With an eye to ride the e-comm boom, the Rs 950 crore HCL Infosystems has targeted a 50 per cent organic growth in its services business.
HCL Insys is also in the process of implementing its netdot strategy which is aimed at shifting the focus of the company to be netcentric and is close to make an acquisition this year, either in the US or UK.
"E-commerce is the new thrust (area) for us, as we have realised that there is immense potential in this area," Ajai Chowdhry, chairman & CEO, HCL Infosystems Ltd, told Business Standard.
According to Chowdhry, the need for e-commerce across the globe outstrips the capability available anywhere. "We feel that in India, as worldwide, e-commerce will take off with the Internet penetration increasing and we want to be ready for that," he added.
This is part of a rejigging exercise of HCL Infosystems' corporate and business identity. From just being a software and hardware company, its focus will be revolving round being the sole provider of all e-commerce infrastructure.
Pointing out the reason for HCL Insys setting up a Net subsidiary, HCL Infinet, Chowdhry said, "An indication of the demand for e-comm related services is that in the last 30 days, we have booked orders worth Rs 52 crore for export."
"The goal of our Internet subsidiary is to provide ISP infrastructure clearly focusing on corporate Internet (clients) providing them with services relating to virtual private network, B2B and B2C activities," Chowdhry explained.
Opportunities in e-commerce lie in product development, setting up e-commerce infrastructure and provide worldwide support for new tools which are merging almost everyday. The company has taken Cisco as a model for being netcentric. Cisco does business worth over $2 billion through the Net and HCL Infosystems feels e-commerce is all about driving cash flows several times over through creativity, content, meeting consumer needs and desires and disintermediation/substitution.
Though the Indian e-commerce business is growing at a slow pace, HCL Infosystems has picked up e-commerce related business here, including developing a software for India Book House (IBH). HCL Infosystems is looking at various options of growth in the Internet business and in 60 to 90 days things are likely to be put in place.
"Our target is to achieve an organic growth of at least 50 per cent in our services business which includes exports also. By June we expect to log in between Rs 220-Rs 230 crore," Chowdhry said.
HCL Infosystems, which has the in-principle approval of its board and shareholders for expansions and raising funds, may go in for an additional listing here. It also has an option for issuing rights issue. Though Chowdhry was a bit cagey, he said the company plans to complete at least one acquisition in either the United States or United Kingdom by the end of this calendar year.
HCL Infosystems has shown strong growth pattern with the Q3 (ended March 31, 2000) profits up by 30 per cent. During the period, HCL Infosystems turnover recorded a growth of 27 per cent to scale Rs 318.2 crores from Rs 251.4 crores in the corresponding period of the previous year.
