INTEL BANKS ON 3G AND WIMAX IN INDIA
As India is all set to take a final call on the spectrum allocations in January 2010 for the much-awaited 3G and WiMax licenses, Intel hopes for more demand of its products and solutions in the computing and Internet space.
Recently, Intel has come out with new devices and solutions that provide mobile and wireless broadband Internet access. For instance its Nettops with Atom processor is a low-cost computing device with a good computing performance, available at the market price of around Rs.10,000 in India.
The company considers Nettops as a key affordable computing device along with boosting Internet penetration in the rural parts of the country. Since its launch, Intel already has sold over half a million units.
Besides, Bharat Sanchar Nigam Limited (BSNL) in association with HCL, Intel and Microsoft has launched BharatPC to boost Internet penetration under the National Broadband Penetration Project (NBPP).
Showing posts with label HCL. Show all posts
Showing posts with label HCL. Show all posts
Sunday, December 13, 2009
Monday, February 16, 2009
SATYAM: ON THE PATH OF EVOLUTION
The fraud at India’s fourth largest software exporter, Satyam Computer Services Ltd, has kick started a Darwinian consolidation among top-tier Indian IT companies as they pitch for Satyam, in part or whole. The company is still reeling under the revelation of $2 billion fraud by its founder on January 7.
Various companies are in the fray to acquire the company either in part, depending on their core business, or in its entirety. These include, the IT arm of India’s largest engineering company Larsen & Toubro Ltd; fifth largest Indian IT company HCL Technologies Ltd; diversified conglomerate Essar Group; London-based diversified Indian conglomerate Hinduja Group; Indian IT company i-Gate Global Solutions; and Spice Group.
The Indian IT industry is in the next stage of evolution, which commenced with the emergence of a number of companies establishing themselves as industry leaders by virtue of expertise in a certain domain, big clients’ accounts and sheer geographical spread. What now follows is the second stage of evolution, that of, consolidation which will involve mergers and acquisitions (M&As) that will shrink the number of companies in the top tier.
A new wave of M&As will be triggered by the acquirer’s business objectives to expand into new markets and new customers, high-end intellectual property of either process technology or product technology and also to garner new skill sets.
The fraud at India’s fourth largest software exporter, Satyam Computer Services Ltd, has kick started a Darwinian consolidation among top-tier Indian IT companies as they pitch for Satyam, in part or whole. The company is still reeling under the revelation of $2 billion fraud by its founder on January 7.
Various companies are in the fray to acquire the company either in part, depending on their core business, or in its entirety. These include, the IT arm of India’s largest engineering company Larsen & Toubro Ltd; fifth largest Indian IT company HCL Technologies Ltd; diversified conglomerate Essar Group; London-based diversified Indian conglomerate Hinduja Group; Indian IT company i-Gate Global Solutions; and Spice Group.
The Indian IT industry is in the next stage of evolution, which commenced with the emergence of a number of companies establishing themselves as industry leaders by virtue of expertise in a certain domain, big clients’ accounts and sheer geographical spread. What now follows is the second stage of evolution, that of, consolidation which will involve mergers and acquisitions (M&As) that will shrink the number of companies in the top tier.
A new wave of M&As will be triggered by the acquirer’s business objectives to expand into new markets and new customers, high-end intellectual property of either process technology or product technology and also to garner new skill sets.
Friday, January 16, 2009
SATYAM'S LOSS COULD BE TCS' GAIN
One company’s misfortune might well be another’s opportunity. It is widely believed that many scam-hit IT firm Satyam Computer’s clients will migrate to competitors such as Infosys, Tata Consultancy Services (TCS) and Wipro, over a period of time.
TCS is likely to garner maximum revenue from Satyam Computer’s pie as it has the highest client overlap with the latter. Infosys, it says, would perhaps gain less than Wipro, given its lower client overlap and greater selectivity.
The Economic Times
One company’s misfortune might well be another’s opportunity. It is widely believed that many scam-hit IT firm Satyam Computer’s clients will migrate to competitors such as Infosys, Tata Consultancy Services (TCS) and Wipro, over a period of time.
TCS is likely to garner maximum revenue from Satyam Computer’s pie as it has the highest client overlap with the latter. Infosys, it says, would perhaps gain less than Wipro, given its lower client overlap and greater selectivity.
The Economic Times
FRAUD, SLUMP? IT MAJORS TO BAG DEALS WORTH $4 bln
Tech biggies such as TCS, Infosys, Wipro and HCL are all set to get new outsourcing contracts worth $4 billion from top customers including British Telecom, Citi, GE and Bank of America this year. In a bid to cope with their tightened budgets, these companies plan to send their information technology works to offshore locations such as India.
The Economic Times
Tech biggies such as TCS, Infosys, Wipro and HCL are all set to get new outsourcing contracts worth $4 billion from top customers including British Telecom, Citi, GE and Bank of America this year. In a bid to cope with their tightened budgets, these companies plan to send their information technology works to offshore locations such as India.
The Economic Times
Thursday, November 13, 2008
INDIAN MOBILE TELECOMMUNICATION: AMPLE SCOPE TO ENTER
--- Potential market of 700 million subscribers and $37 billion revenue base by 2012
--- Tata Teleservices - NTT DoCoMo, Swan Telecom – Etisalat and Unitech Telecom – Telenor deals expose Indian Telecom M&A Potential: Deals at $5.8 billion
--- IT and Telecom most consolidating sectors; only sector to cross three digits mark of 100 deals for $6 billion with 21.4% share in M&As worth $28 billion this year to October;
--- IT and Telecom sectors expected to close the year with deals worth $10 billion
The deal by NTT DoCoMo Inc, Japan’s largest mobile telecommunication service provider to pick up 26% stake in Tata Teleservices Ltd, the telecom services arm of India’s largest private sector diversified Tata Group for $2.7 billion exposes the India entry potential for global mobile telecom service providers who do not have on their radar an India entry strategy yet.
Such service providers are missing out on opportunities in a country where incumbent mobile telecommunication service providers collectively add more than nine million subscribers a month and are projected to have overall mobile services revenues of more than $37 billion by 2012 growing at a CAGR of 18%, according to estimates.
The string of investments in Indian telecom companies, including, Tata Teleservices Ltd, the telecommunication services arm of India’s largest private sector diversified Tata Group by NTT DoCoMo, Inc., the largest Japanese mobile telecom service provider; Unitech Telecom, the telecom arm of India’s second largest real estate developer Unitech Ltd by Norwegian telecom firm Telenor ASA, world’s seventh largest telecom service provider at $1.36 billion; and Swan Telecom, a start-up GSM telecom service company of a Mumbai-based real estate developer Dynamix Balwas Group by Dubai-based Emirates Telecommunications Corp (Etisalat) at $900 million; or, South Africa’s largest telecom company MTN Group’s attempts to enter the Indian market – are an indication of the fact that there is ample room to enter this market, at least inorganically.
“The investments in Tata Teleservices by NTT DoCoMo and the start-up operations of Swan Telecom by Etisalat and Telenor ASA’s in Unitech Telecom exposes the potential for inorganic activity in a market that is otherwise considered to be crowded but has a tele-density of less than 30%, signifying the expected growth potential in the sector.” said Bundeep Singh Rangar, Chairman IndusView Advisors Ltd, the India-focused cross-border advisory firm.
The Tata Teleservices deal will accelerate the telecommunication sector deal activity to $5.8 billion from about $3.1 billion in the deal street that grossed more than $28 billion this year to October.
Opportunities Exist
Other international telecom service providers seeking an
Such growth trends bring with it corresponding increase in investments as government estimates suggest that the overall telecommunication sector will need $73 billion over the next five years to achieve a tele-density of up to 45%. And, a major chunk of the investment is expected to be realized through Foreign Direct Investment (FDI), particularly in the area of mobile communication.
It becomes significant as the government has granted new licenses and spectrum to aspiring operators such as Datacom Solutions a subsidiary of one of India’s leading consumer durables company Videocon Industries Ltd; Loop Telecom, a BPL Mobile Communications group company; S Tel Ltd, joint venture between Skycity Foundations and Telecom Investments (Mauritius) Ltd; among others which are likely targets – but within the regulatory purview of the overseas entity’s stake in the domestic company not to exceed 74%.
“MTN Group, South Africa’s largest mobile service provider with operations in 21 countries is another service provider waiting in the pit-lane to move in to India after its attempts to do so failed on two earlier occasions with leading Indian telecom service providers Bharti Airtel Ltd on the first count, followed by Reliance Communication, which could have been the largest emerging markets telecoms merger worth more than $65 billion.” added RangarOther large mobile telecom deal this year included Idea Cellular Ltd, the telecom business of the diversified Aditya Birla Group, acquiring 40% stake in Spice Communications Ltd, a regional cellular services provider for $675 million.
Information Technology (IT) and Telecom: Deals Despite the Downturn
Taking a collective view of the inorganic growth activity in the technology driven businesses, Information Technology (IT) & IT enabled Services (ITeS) and Telecommunication together account for deals worth about $6 billion emerging as the most consolidating sectors crossing the three digit mark of 100 deals with 21% share in M&As worth $28 billion to October this year.
Some of the large deals in the sector so far include:
§ The acquisition of Citigroup's captive Business Process Outsourcing (BPO) arm Citigroup Global Services (CGSL) for $505 million by
§ WNS Holdings acquisition of Aviva Global services for $228 million,
§ Quatrro BPO Solutions buying a majority stake in the U.K.-based Babel Media for $110 million, and
§ Essar-owned Aegis BPO buying Nasdaq-listed People Support for $250 million
§ ITeS company CBay Systems bought 69.50% stake in MedQuist Inc. for $287 million.
In fact the pending purchase of Axon Group Plc, the U.K.-based provider of SAP implementation consulting, by HCL Technologies Ltd for $814 million after it rivalled the bid of its larger competitor and second largest IT services company Infosys Technologies Ltd, will give the IT and Telecom sector top slot in the sectoral ranking of the merger and acquisition (M&A) table with deal value exceeding $10 billion (including the Tata Teleservices deal).
The other deal in the making is that of Tata Consultancy Services’, India’s largest software services exporter, expected acquisition of Europe's largest engineering conglomerate Siemens AG’s IT Solutions and Services (SIS) unit.
Friday, October 10, 2008
First Three Quarters Of Indian M&As Top $26 Billion
--- Cash rich Indian companies’ overseas acquisitions worth $14 billion outpace their global counterparts that made acquisitions worth $8 billion in
--- Infrastructure Sector Dominates Deal Street with transactions worth $12 Billion
--- Power, Oil & Gas top grosser with merger & acquisitions (M&As) worth $5 billion; Ninth India-EU Summit sets ground for future deals in Nuclear Energy
--- Banking & Financial Services and Pharmaceutical sectors follow with M&A deal values of more than $3 billion each
--- Overall M&As highlight the India-Europe corridor that witnessed 52% share in total cross-border deals worth $22 billion
The acquisition of Citigroup's captive Business Process Outsourcing (BPO) arm Citigroup Global Services (CGSL) for $505 million by India’s largest IT services exporter Tata Consultancy Services - the largest buyout of a foreign captive BPO in India; the acquisition of the U.K.’s Imperial Energy Plc, one of the leading oil companies with assets in Russia by India’s ONGC Videsh Ltd, a subsidiary of India’s biggest explorer Oil & Natural Gas Corporation (ONGC) Ltd for $2.8 billion; the pending purchase of Axon Group Plc, the U.K.-based provider of SAP implementation consulting, that has invited rival bids from India’s second largest IT services company Infosys Technologies Ltd and HCL Technologies Ltd., are all manifestations of an M&A binge fueled by large cash reserves held by Indian companies.
Indian companies with a war chest of cash reserves, such as Infosys Technologies Ltd, India’s second largest IT services company, with reserves of about $2 billion; ONGC Ltd with similar reserves; Tata Sons, the holding company for all Tata Group’s investments, with reserves and surplus of more than $2.5 billion, among others, have become active acquirers in the market. This has happened as the US Standard & Poor's 500 Index has tumbled 33 percent in its worst yearly slump since 1937.
Infrastructure Dominates
Infrastructure-related industries dominated mergers and acquisitions (M&As), accounting for 45% of the deals at more than $11.8 billion of the total deal value of $26 billion this year to September.
“The traction in the infrastructure M&As is symbolic of the need for world class facilities, adoption of internationally applicable best practices, experienced global management expertise & technology applications to accelerate growth in the Indian economy. To get that resource base of incremental funds and expertise, part of the capital is expected to find its way in to mergers & acquisitions (M&As).” says Bundeep Singh Rangar, Chairman, IndusView Advisors Ltd, Europe’s fastest-growing Indian mergers and acquisitions firm.
The Indian government has responded to an urgent demand for new infrastructure targeting to spend 9% of the country’s GDP on infrastructure by 2012. Estimates suggest that a third of this investment will come from the private sector, presenting an unprecedented investment opportunity, with corresponding inorganic activity.
“The focus towards the sector is buoyed by the urgency to match global standards. This augmentation is expected to cost and attract investments to the tune of $500 billion over the next five years.” added Rangar
The power sector has been the main stay of the M&As this year within the infrastructure sector, which accounted for $5 billion, or 42% of the deal value in the infrastructure sector. The power sector commanded 19% share in the total M&A value of $26 billion this year compared with about $4 billion last year representing a 7.4% share of the total deal value of $51 billion.
The power sector witnessed two deals worth more than $1 billion – acquisition of the U.K.’s Imperial Energy Plc, one of the leading oil companies with assets in Russia by India’s state owned oil company ONGC Videsh Ltd, subsidiary of Oil & Natural Gas Corporation (ONGC) Ltd for $2.8 billion; and the acquisition of InterGen NV, a Dutch power company by Indian infrastructure company, GMR Infrastructure Ltd.
“The recently concluded ninth India-European Union summit in Marseille, France is expected to further accelerate the M&A activity in the power sector as it’s focus turned towards the potential of nuclear energy to the growth in trade between the two regions, which is targeted to reach €100 billion ($140 billion) over the next five years.” added Rangar
Among the infrastructure sectors, the power sector was followed by telecommunication sector that emerged the second most consolidating sector with $3.75 billion, a share of 32% in the infrastructure sector deal value and 14% share in the overall M&A deal value.
The other sectors which have significantly contributed to the M&A activity are Banking & Financial Services and Pharmaceutical sectors with M&A deal values of more than $3 billion each. These sectors were followed by the Automotive Sector with deal value of about $2.5 billion.
Some of the big ticket deals during the year to September included, the acquisition of
· The
· Jaguar and Land Rover, the
· Tokyo-based pharmaceutical company Daiichi Sankyo Company Limited’s acquisition of Ranbaxy Laboratories Ltd,
· HDFC Bank Ltd, one of
· Investment $2 billion in Unitech Telecom, the telecom arm of India’s second largest real estate developer Unitech Ltd by Italy-based Telecom Italia SpA
Cross Border Deals
“Significant aspect of the M&A activity has been India Inc.’s eyes on global opportunities, which have become more prominent in the backdrop of the global recession.” explains Rangar
India Inc.’s overseas acquisitions (outbound) worth about $13.8 billion, outnumbering the value of acquisitions made by overseas companies in
Four of the big ticket overseas deals by Indian companies were in
Trade between
The
“Indian companies with their acquisitions of companies in the U.K. are increasingly seeking to harness the size and scale of global operations on one hand and unlock the potential in emerging economies on the other, exhibited by the acquisition of Jaguar and Land Rover, the U.K. based iconic marquees of the U.S.-based Ford Motor Company by Tata Motors Ltd; and the acquisition of the U.K.’s Imperial Energy Plc, one of the leading oil companies with assets in Russia by India’s state owned oil company ONGC Videsh Ltd, subsidiary of Oil & Natural Gas Corporation (ONGC) Ltd.” said Rangar
The
Tuesday, July 08, 2008
INDIAN FIRMS EMPLOY OVER 30K
Amidst the row in US over outsourcing, a study has said that big corporates like Essar, HCL, Tata, Mahindra and Wipro have generated over 30,000 jobs for Americans in recent years.
The Financial Express
Thursday, February 28, 2008
India's computer market sees 20% year-on-year growth
The country's personal computer market saw nearly 6.5 million units sold in 2007, a 20 per cent year-on-year growth, spurred by automation drive of firms and increased consumer spending on notebooks.
The Economic Times
http://economictimes.indiatimes.com/News_by_Industry/
Indias_computer_market_sees_20_year-on-year_growth/
articleshow/2820511.cms
The Economic Times
http://economictimes.indiatimes.com/News_by_Industry/
Indias_computer_market_sees_20_year-on-year_growth/
articleshow/2820511.cms
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