HCL Infosystems to Shut PC Manufacturing Business

This has been coming for a while. Indian PC maker HCL Infosystems will stop manufacturing personal computers as the company continues to make losses from the business which contributes to about 8% of its total revenues, according to a new report.

“We will be stopping manufacturing. My distribution today does lot of distribution of PCs of multiple brands… We will be in PC distribution and in after sales services but will not manufacture HCL branded products some time in the future,” HCL Infosystems CEO and managing director Harsh Chitale told news agency PTI. (source)

Chitale did not specify when the company will shut manufacturing business. hcl

HCL Infosystems, part of the $6.5 bn HCL Group, will focus on servicing and distribution of electronic goods.

According to the company’s latest quarterly earnings, it made a loss of Rs 133 cr from the hardware products and solutions business in the year ending June 2013, while its services & distribution business remained profitable.

Appreciation of the dollar against the rupee has eroded margins of PC makers in India, while demand has been propped up by government orders. HCL, which had a dominant market position in its heydays, was quickly pushed over by Dell, HP, Lenovo and other PC makers who entered the Indian market.

According to IDC, Hewlett Packard leads the Indian market with 34.1% share at the end of August.

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