HCL Tech forms JV with Canadian company

IT services company HCL Technologies has formed a joint venture with Canada-based electronics manufacturer Celestica Inc to provide complete concept-to-manufacturing solutions.

Shares of HCL Technologies rose 2.3 per cent to Rs 640 on the Bombay Stock Exchange soon after the announcement.

The two companies will provide product concept, design, engineering, manufacturing, fulfilment, sustaining engineering, reverse logistics and after-market services to customers across the telecom, enterprise, consumer, medical, aerospace and semiconductor sectors.

"We will set up a design services centre in Chennai to address the electronics market space," said Vineet Nayar, president, HCL Technologies, adding that the centre will employ 200 people over the next six months.

Nayar expects the joint venture to contribute an incremental revenue of $100 million over the next five years. "The firm will be responsible for designing electronic components, which Celestica would then manufacture for its global customers such as IBM and Cisco Systems Inc. HCL will also benefit from the additional revenue stream and access to a new set of clients," Nayar said.

The two firms would initially address the medical electronics, consumer electronics and aeronautical sectors.