Three sources told The Times of India's The Economic Times newspaper that HCL Infosystems was planning to merge its services and system integration businesses with HCL Technologies. The talk of a merger was said to be ignited by the recent team work of HCL Technologies' sales teams and HCL Infosystems. They were observed jointly pitching in the Middle East and India for new technology service contracts.
A senior executive at HCL Technologies said, "Client details have been shared and the sales teams at HCL Technologies are reaching out to HCL Infosystems' clients, presenting as one integrated entity." Another source said, "(The) message (to merge units to one operational unit) has been conveyed to the senior management."
However, Executive vice president for corporate development at HCL Infosystems Rothin Bhattacharyya debunked the integration plan of HCL Technologies and HCL Infosystems. He said there were no plans addressed to nor in under consideration of the HCL board. Bhattacharyya also said that the collaborations between companies in the information technology services, however, is a common practice in the industry.
HCL Technologies declined to comment about the merger.
HCL Technologies focuses on the US, Europe and Asia-Pacific markets, and had generated INR25,734 crore in sales year to date ended June 30. HCL Infosystems focuses on Indian and Middle Eastern markets and recorded a revenue of INR9,295 crore this year. A crore is a South Asian numbering unit equivalent to ten million.
Join the Conversation