HCL Info to hive off hardware business into separate unit

Information technology company HCL Infosystems Ltd is planning to hive off its hardware business into a separate unit in a bid to give “sharper focus” on the “rapidly-evolving computing technology market,” the company said on Tuesday.

After a meeting of its board of directors, HCL Infosystems informed the BSE the directors “have approved transfer of the company's computing products manufacturing and channel business to a wholly owned subsidiary/group/affiliate/other entity.” 

When contacted, HCL in an email statement said: “We are confident that this step will enable the company to have a sharper focus on this business, streamline operations and in bringing better economies of scale. We are confident that this entity will achieve better efficiency and sharp focus in a rapidly evolving computing technology market”.

HCL Infosystems recently launched the new Beanstalk range of AIO (All in One) personal compuers (PCs) and the Smart series laptops. It has also showcased its range of lifestyle technology products, including tablets and the soon-to-be-launched HCL Ultrabook and the Ultra Small PC--HCL Tiny Top.

In an interview with Buisness Standard earlier this year, HCL Infosystems chief executive officer Harsh Chitale had said the company would not make any new investment in its computing hardware business, as it wanted to focus on growth engines such as services, learning and multi-brand distribution .

Shares of HCL Infosystems closed at Rs 41.30 on Tuesday on the BSE, down 0.60 per cent from the previous close.

"We will wait and watch...we are not making any fresh investments now," Chitale had said. The company saw profit erosion in the computing business in the first two quarters of 2011-12 due to foreign currency fluctuation and floods in Thailand.

In a separate announcement, the company said Ajai Chowdhry had decided to step down from the position of director of the company with effect from June 30. Chowdhry had earlier stepped down as the whole-time director of the company effective March 31.