NEC takes 51% in JV with HCL

JV to grow to about $25mn in 3 years & might scale up to $75-100mn in 3-5 years.

HCL Technologies (HCL) today announced a joint venture with Japanese infotech major NEC to provide offshore software engineering solutions.

NEC Systems Technologies Ltd will hold a 51 per cent stake in the company, to be located in Noida, with the remaining shares held by HCL. The joint venture will cater to all NEC companies and its clients.

'The joint venture is expected to grow to about $25 million in three years and has the potential to scale up to $75-100 million in three-five years," said Shiv Nadar CEO, HCL.

According to Toshihiko Takahashi, president NEC System Technologies Ltd, the joint venture will have a capital of $5 million, and will begin operations with 70 professionals to be expanded to 250 in three years.

"The logistics will be in place by August 2005, and operations are likely to begin by October," he said.

As per the joint venture agreement, the key areas of cooperation will be in the fields of embedded software, hardware design, network and security, R&D, high-performance computing and mobile technology.

HCL will provide the CEO and the CTO along "with some key technical people to kick start the venture".