HCL Infosystems Scheme of Arrangement on restructuring gets implemented

HCL Infosystems announced that its Scheme of Arrangement on restructuring of its businesses has become effective from 1st Nov 2013.

Under the restructured organization, the Company's businesses of Solutions, Services and Learning have been transferred to the wholly-owned subsidiaries HCL Infotech, HCL Services, and HCL Learning while the Products Distribution business would be with the Parent entity HCL Infosystems.

This restructuring of the business into separate subsidiaries is part of the Company's strategy to enable sharper focus on each core business and adopt a customized strategic approach for each business area.

The Hon'ble High Court of Delhi has approved the Scheme of Arrangement and the copy of the High Court order has been filed with the Registrar of Companies, NCT of Delhi & Haryana.

Harsh Chitale, CEO and MD, HCL Infosystems said, "HCL Infosystems is a large organization with diverse nature of businesses, each with very different kind of human resources, technical and financial requirements. This restructuring process was initiated with a clear objective of enabling each business to meet its individual requirements and build an organization customized to that business. Now there would be independence as well as accountability for each of the businesses. There will be greater visibility on the financial and operational performance of each business, restructuring would also address more effectively the funding and capability acquisition needs of these businesses."

"This restructuring would now enable us to have undivided focus and attention on our key growth engines - Distribution and Services. Our Distribution business has been growing on the back of robust performance of Telecom Distribution coupled with increased momentum of non telecom distribution through the addition of many leading brands in IT, Office Automation and Consumer Electronics space. This restructuring would also enable our Services business, carved out in HCL Services, the flexibility to invest in capability building and rapid expansion across markets. Our Services business has built a healthy order book on back of large Managed Services and Break-fix services outsourcing deals. At the same time our Services business would explore growth in emerging technologies. The restructuring also bodes well for one of new businesses, Learning, which is now ready to stand on its own feet as a separate subsidiary. The restructuring will allow our Learning business to pursue strategy best suited to meet its large expansion goals," added Chitale.

Rothin Bhattacharya, executive VP, marketing, strategy and business development, HCL Infosystems said "HCLI will continue to be people centric in its approach and our employees would be at the center of all that we do. While employees will be transferred to the respective subsidiaries, there will be no change in the employment conditions and HCL's people-focus culture. Also this is an important launch pad for all our businesses to achieve their individual visions. Some of our recently incubated businesses can now behave like start-ups. Our large growth focus businesses such as Services and Distribution will now be able to receive undivided focus and attention."