HP, Compaq won $100m deals in India
TIMES NEWS NETWORK & AGENCIES [ WEDNESDAY, MAY 08,
2002 7:43:58 PM ]
BANGALORE: Hewlett-Packard and Compaq have won
contracts aggregating $100 million in India in the
recent period prior to the merger of the two
companies, a senior HP executive said on Wednesday.
"We are also about to win large deals in the next
three months," the new HP India president Balu
Doraisamy told a news conference here, where he
announced the official launch in India of the new
Hewlett-Packard company. HP and Compaq Computer
Corporation had merged at the global level last week
to become the new Hewlett-Packard Company with the
merged company having a combined revenue of $81.7
billion in fiscal 2001. Doraisamy said, "We will be
aggressive in the market and give a run for the money
to others." He, however, said the next six months (May
to October) would be flat in terms of revenue because
of the prevailing sentiments in the market. "We are
not seeing any great growth because of the market
sentiments. It may not improve till the late second
half." About the impact of the decision to lay off
some 15,000 work force at the global level on India,
he said, "India has to contribute. There will be an
impact which will become clear in two to three weeks."
Dismissing reports that there would be a 25 per cent
cut in the workforce in India, he said the focus was
to build the organisation for growth. "We are looking
at 25 per cent growth. How can we cut 25 per cent (of
the employees)?" "We will not do anything that will
disable us," he said. The new HP, he said, would focus
on customers, employees and partners in the next 30
days. Doraisamy, who was heading Compaq India
operations, recently replaced Mr Arun K Thiagarajan
who was president of HP India. Doraisamy did not
comment on the new role that Thiagarajan is likely to
hold in the new HP. However, it is understood that
Thiagarajan is quitting HP some time after the
integration process gets complete. The combined
revenues of the new HP makes it India's largest IT
vendor, unseating IBM India. Revenue figures provided
by trade magazines indicate that in fiscal 2001, HP
India's revenue was Rs 1,500 crore and that of Compaq
India Rs 1,700 crore. IBM India's revenue is said to
be around Rs 1,650 crore. Doraisamy declined to
comment on HP or Compaq's revenue. All he said was
that the combined entity has a bright future as size
matters if needs of a broad set of customers are to be
addressed. The combined revenue of HP and Compaq in
the Asia-Pacific region (excluding Japan) during FY
2001 was $7 billion. Doraisamy said that four core
business groups will comprise the new HP. These are
the enterprise systems group, which will be under
Doraisamy, HP Services and personal system group,
which will be led by Kapil Jain and Ravi Swaminathan
(two Compaq employees). Ravi Aggarawal of HP will head
the imaging and printing group. Compaq's Presario and
HP's Pavilion brand of consumer desktops and notebooks
will co-exist in the domestic market. The details on
other product lines were not spelt out. A statement
from HP's headquarters, however, said that HP will be
the master brand for all server products. It will
however retain the product families of both companies.
Business desktop and notebooks will migrate to the
Compaq platform and both will carry the Compaq name.
HP said its Jornada handheld computer would be dropped
in favour of Compaq's iPAQ. On the imaging and
printing front, the HP product line-up will continue
while that of Compaq will be phased out. Sounding very
optimistic Doraisamy said that the new entity has
bagged major orders and several more mega wins are in
the pipeline. He, however, added that the domestic
market has not picked up and is not expected to
improve until the second half of current fiscal.
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