Shiv Nadar HCLTechnologies. : Shiv Nadar HCLTechnologies. Presented by:
Anand kumar Soni.
Pondicherry University, Karaikal Campus. Slide 2: Shiv Nadar is an Indian industrialist. He is the chairman and chief strategy officer of HCL Technologies.
As of 2011, his personal wealth is US$5.6 billion. Shiv Nadar founded HCL in the mid-1970s and transformed the IT hardware company into an IT Enterprise over the next three decades by constantly reinventing his company's focus.
In 2008, Nadar was awarded Padma Bhushan for his efforts in IT industry. Slide 4: Shiv Nadar, nicknamed by friends as Magus (Old Persian for Wizard), since mid-1990s has focused his efforts in developing the educational system of India through SSN Trust
Shiv Nadar born in Tamil Nadu India and was in the Nadar community to Sivasubramaniya Nadar and Vamasundari Devi in 1945.
His mother, Vamasundari Devi and S. P. Adithanar, founder of Dina Thanthi were siblings.
Shiv Nadar received a pre-University degree in The American College, Madurai and degree in Electrical And Electronics Engineering from PSG College of Technology. Slide 5: He began his career at Walchand Group's Cooper Engineering in Pune in 1967.
HCL - 3 decades of evolution.
First decade -Startup to India's No 1 IT company:
Subhash Arora, Yogesh Vaidya and DS Puri, Shiv Nadar started Microcomp to sell teledigital calculators in the Indian market, under the brand name "Televista’’.
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. Slide 6: In 1980, HCL ventured into the international market with the opening of Far East Computers in Singapore to sell IT hardware.
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. Slide 7: HCL utilized the opportunity to develop Personal computers solutions (called Busybee) and UNIX platform based solutions.
By 1987, HCL recorded revenue of Rs 100 crores and featured as India's number 1 company.
Second decade - Transition to software services business
Shiv Nadar looked at marking a place in the global arena after having captured Indian IT leadership. HCL America was set up in 1989.
In the mid '90s, Shiv Nadar added sale agreement with Ericsson and Nokia to distribute their products in India. Slide 8: 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 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. Slide 9: By early 1998, Nadar had consolidated his business into five entities - HCL Technologies (global IT service company), HCL Infosystems (Indian IT hardware leader), HCL comnet (network services company), HCL Perot (IT applications) and NIIT (education services).
Third decade - Global IT service company
Shiv Nadar took HCL Technologies public in 1999,At the time of IPO, HCL was the second largest IT company with revenue of Rs. 7.23 billion behind TCS (Rs 16.52 billion) but ahead of Wipro (Rs 6.32 billion) and Infosys (Rs. 5 billion) and with the Internet boom in full swing.
in 2000, HCL was left behind by its competitors because of their headstart in Enterprise application services Slide 10: Nadar made an effort to bootstrap HCL with acquisitions in 2001. HCL acquired Apollo Contact center from BT and Deutsche Software Limited to address the BPO and Financial services market. Still HCL continued to underperform competitors through 2005.
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. Slide 11: Nadar promoted Vineet Nayar as President of HCL Technologies and revive HCL's sagging fortunes in the IT services spectrum.
In 2007, Shiv passed the mantle of CEO of HCL Technologies to Vineet Nayar. Shiv remains Chairman of HCL Technologies and its largest shareholder.
Non-IT business ventures
Nadar had less success with his ventures outside the IT and software industry.
His partnernship with Singapore Telecom to address the now-booming Indian Telecom market was unsuccessful as well as his attempts in the granite and aquaculture business. Slide 12: Focus on Education & Healthcare
In 1996, Shiv Nadar founded SSN College of Engineering in Chennai, Tamil Nadu in the name of his father - Sri Sivasubramaniya Nadar.
Shiv Nadar takes active role in the college activities including gifting of Rs. 1 million worth of HCL shares to the college.
In 2006, Nadar announced that the college will promote research apart from ensuring that students benefit from foreign university tie-ups.
Nadar joined the Executive Board of Indian School of Business in 2005. Slide 13: In March 2008, Nadar's SSN Trust announced setting up of Seven Vidyagyan schools in UP for rural students where free scholarship will be provided for 100 students from 10 districts of Uttar Pradesh.
Shiv Nadar is a member of the Governing board of Public Health Foundation of India (PHFI). Slide 14: HCL founder Shiv Nadar on Thursday 5th Aug ust donated over Rs. 580 crore he earned by selling his 2.5 per cent stake in the company owned by him and his family.The amount was raised through the sale of a stake of about 2.5 per cent in software firm HCL Technologies in block deals through HCL Corporation and will be used for education initiatives of the Shiv Nadar Foundation.The amount donated by Nadar is by far bigger than the standards set by larger firms. Charitable giving in India probably totaled about $7.5 billion (Rs. 3,487.12 crore at an exchange rate of Rs. 46.49 per dollar) in 2009, according to a study by Bain & Co. Slide 15: Awards and accolades
In October 2006, Shiv Nadar received an honorary fellowship from All India Management Association
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 2008, Government of India awarded Shiv Nadar with Padma Bhushan, the third highest civilian award, for his contribution to IT industry. Slide 17: THANK YOU