HCL Info plans to make mobile internet devices

HCL Infosystems is planning to enter the nascent mobile internet devices (MID) market in India. The company, which manufactures personal computers (desktops and laptops), plans to soon assemble MIDs at either of its two production facilities in Puducherry and Uttaranchal.

MIDs represent a new class of emerging low-power mobile lifestyle devices. They are expected to rival notebook computers in features and capabilities and yet come in significantly smaller and lighter forms, spurring the birth of a whole new class of mobile multimedia devices that fall in between smartphone and notebook/tablet computer. Global MID shipments, according to electronics market research firm Forward Concepts, will grow from 305,000 units in 2008 to almost 40 million in 2012, involving a revenue of $12 billion.

“This would be a high volume, low-cost manufacturing,” according to George Paul, executive vice-president, marketing, HCL Infosystems. Currently, the company’s two plants have a combined production capacity of two million units annually.

HCL Infosystems simultaneously plans to focus on system integration and telecom infrastructure projects this financial year (FY10) to grow its business. Last financial year, the company reported a turnover of Rs 12,000 crore, with flat growth. “We will target the defence sector and telecom and roll out Wimax infrastructure services for telecom companies as the infrastructure is a huge investment sector,” said Paul, adding, “System integration has a huge potential. We have closed with an order book of Rs 1,300 crore worth of projects to be executed over the next one year.”

The company, said Paul, had completed core insurance infrastructure projects and a power utility project for Himachal Pradesh. Typically, system integration projects cost between Rs 5 crore and Rs 300 crore.

HCL Infosystems also intends to launch new business-to-business computing products for enterprises. The company is banking on defence and e-governance projects to drive its growth this financial year. “For instance, currently, we are piloting financial inclusion in East India for a leading private sector bank,” said Paul.