HCL buys out NTS
By Ria Sharma
HCL is a $6.2 billion leading global technology and IT enterprise comprising two companies listed in India - HCL Technologies and HCL Infosystems. Founded in 1976, HCL is one of India's original IT garage start-ups. The HCL team consists of over 90,000 professionals of diverse nationalities, who operate in more than 31 countries including over 500 points of presence in India.
HCL Infosystems, which specializes in hardware, services and ICT Systems Integration and Distribution, has announced the buyout of the remaining 40% stake held by the NTS Group in HCL Infosystems MEA. HCL Infosystems Ltd., through its wholly owned subsidiary HCL Insys Pte. Ltd., Singapore has bought the stake in HCL Infosystems MEA FZCo. Following the transfer of shares, the FZCo shall be converted into a FZE (free zone establishment) owned solely by HCL Insys Pte. Ltd., Singapore. HCL Infosystems MEA FZE now becomes a wholly owned subsidiary of HCL Infosystems Ltd.
NTS Holding BVI was a leading IT services and Solutions Company based in Dubai. HCL Infosystems had earlier acquired 60% of NTS Group in 2010 to expand its global footprint in the Middle East and African market with direct operations to address the system integration and services need in these regions.
Regarding the buyout Mr. Shivkumar Gopal, CEO, HCL Infosystems MEA said, “HCL Infosystems MEA becoming a wholly owned subsidiary of our company is a significant step in our overall global emerging market strategy and also is a huge development for our operations in Middle East. This buy out will put us in a stronger footing in the Middle East market and enable us to quickly expand our business in the region. We will now focus on enhancing our capabilities and offer more solutions, services and products to our customers here in the region. The Middle East business is very important to us and is the centre of growth that drives our overall emerging market business.”
The company’s increasing presence in global emerging markets such as Middle East, Africa and South East Asia represents an important step in the company’s transformation strategy that includes the focus to accelerate growth in targeted international markets by offering a complete set of products, service and solutions. The Middle East region specifically remains a high growth area and recently in April 2012 the company launched its operations in Qatar through a tie-up with Dyarco International WLL, a business consultancy and subsidiary of Al Faisal Holdings. More recently HCL Infosystems MEA expanded its operations in Qatar by partnering with Consolidated Gulf Co. (CGC), a leading technology and engineering solutions and service provider to make available HCL Laptops, Desktops and Tablets in the region
HCL Infosystems Ltd, had revenue of US$ 2.4 billion (Rs.10,754 crores) last year.