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Shiv Nadar

1) Shiv Nadar co-founded Microcomp in 1976 with five others to sell calculators in India under the brand Televista, later establishing HCL with an initial investment of Rs. 187,000. 2) HCL grew to become India's largest computer company by 1987 after opportunities arose from foreign firms leaving India and liberalized import regulations. 3) Seeking global expansion, HCL set up various partnerships in the 1990s including with HP, Ericsson, and Nokia but its American venture failed, though it consolidated leadership in India.

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Surendhar Murugan
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222 views2 pages

Shiv Nadar

1) Shiv Nadar co-founded Microcomp in 1976 with five others to sell calculators in India under the brand Televista, later establishing HCL with an initial investment of Rs. 187,000. 2) HCL grew to become India's largest computer company by 1987 after opportunities arose from foreign firms leaving India and liberalized import regulations. 3) Seeking global expansion, HCL set up various partnerships in the 1990s including with HP, Ericsson, and Nokia but its American venture failed, though it consolidated leadership in India.

Uploaded by

Surendhar Murugan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Blossom of a Giant:

Along with Ajai Chowdhry (Chairman, HCL Infosystems), Arjun Malhotra (CEO and


Chairman, Headstrong), Subhash Arora, Yogesh Vaidya and DS Puri, Shiv Nadar started Microcomp
to sell teledigital calculators in the Indian market. under the brand name "Televista.

Using Opportunity:

HCL was founded later in 1976 with an investment of Rs 187,000 from the 6 founders and
added Uttar Pradesh government as a 26% equity partner. While the company focused on building a
microcomputer from scratch, it received an unexpected boon when foreign companies like IBM left the
country due to the policies adopted by the then Industrial minister George Fernandes in 1977 creating
a market space for the microcomputer in India.

Going Global:

In 1980, HCL ventured into the international market with the opening of Far East Computers in
Singapore to sell IT hardware. The venture reported Rs 1 million revenue in the first year and
continued to address the Singapore operations. In 1981, Rajendra Pawar, Vijay Thadani, S Rajendran
started NIIT with Nadar playing the role of investor to address the then fast growing computer
education market. Nadar remained the largest shareholder without retaining any management control.
Nadar retained his shareholding in NIIT through 2003 at least.

Through 1984, the company focused on designing microcomputers and writing custom applications
for clients on these systems. When the Indian government liberalized regulations for import of
technology, the computer market was in effect opened for adopting new global technologies. HCL
utilized the opportunity to develop Personal computers solutions and UNIX platform based solutions.
In the IT hardware business, the company opened a subsidiary called HCL office Automation that
quickly became India's leader in office solutions. By 1987, HCL recorded revenue of Rs 100 crores
and featured as India's number 1 company.

Alliance and Tie Up:

Shiv Nadar looked at marking a place in the global arena after having captured Indian IT leadership.

 HCL America was setup in 1989. However the move backfired as Shiv Nadar and HCL
miscalculated the requirements of the market and the venture didn't succeed in the world's
largest market.

 However in India, HCL consolidated its market position in the early part of its second decade
reaching an inflexion point in 1991 when the government liberalized the economy to provide
a level playing field for foreign players.

 HCL joined HP and created a JV - HCL HP Limited. The JV built solutions to address the
local computing market as well as gave HCL its first experience in outsourced R&D.
 In the mid '90s, Shiv Nadar added sale agreement with Ericsson and Nokia to distribute their
products in India. In 1995, Nadar set a target of Rs 100 billion as target for the HCL Group, a
target his group will fall short.

 By 1995, HCL became a complex organization with over 40 subsidiaries and Nadar quickly
realized that global IT services was the way forward rather than IT hardware.

 HCL Consulting was formed to address the IT services and the R&D division of HCL-HP was
merged into HCL Consulting. The company was renamed HCL Technologies in 1996, the
same year the JV with HP broke off.

Integrating:

By 2004, the number of companies in HCL was consolidated from five to two - HCL Technologies and
HCL Infosystems. Shiv's shareholding in NIIT was recognized as personal investment and HCL
Comnet became a subsidiary of HCL Technologies. HCL Perot was sold back to partner Perot
Systems for $105 million in December 2003. S Raman, COO & President, HCL Technologies retired
in early 2005 and Nadar promoted Vineet Nayar as President of HCL Technologies and revive HCL's
sagging fortunes in the IT services spectrum.

Giving Chance:

In 2007, Shiv passed the mantle of CEO of HCL Technologies to Vineet Nayar. Shiv remains
Chairman of HCL Technologies and its largest shareholder.

Awards and accolades


 In 2008, Government of India awarded Shiv Nadar with Padma Bhushan, the third highest
civilian award for his contribution to IT industry.
 In 2007, Madras University awarded him honorary doctorate degree (D Sc) for his
contributions in promoting software technology Nadar was also recognized as E&Y
Entrepreneur of the Year 2007 (Services).
 In October 2006, Shiv Nadar received an honorary fellowship from All India Management r

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