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PDF: 2962 pages, 5.2 MB - Bay Area Council Economic Institute

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Global Reach<br />

can only be done by U.S. citizens or green card holders. The 200,000-square foot facility will<br />

accommodate a workforce of 1,000, most of them local hires. One floor is a segregated facility<br />

for export-controlled work; the remainder will serve existing TCS contracts with Nielsen and<br />

with U.S. banks.<br />

HCL Technologies:<br />

India’s Homegrown Hewlett-Packard Diversifies<br />

It’s the well-known Silicon Valley garage startup story, except in<br />

India. Shiv Nadar was an executive with Delhi Cloth Mills (DCM) in<br />

1976, shortly after the Foreign Exchange Regulation Act was<br />

passed. DCM was a diversified industrial company and Nadar<br />

worked in the electronic calculator division. Sensing opportunity in<br />

the market, he quit his job and, with Ajai Chowdry and four friends,<br />

formed Microcomp Ltd. in Noida to design and manufacture the<br />

Micro2200 scientific calculator.<br />

Within a year, as it became apparent that IBM and other multinational<br />

competitors would soon be raising the local ownership stake<br />

in their operations or leaving India, Microcomp expanded into the<br />

microcomputer business with investment from the six founders and<br />

a 26% equity ownership by the Uttar Pradesh state government.<br />

The company was renamed Hindustan Computers Ltd. (HCL).<br />

Entrepreneurial Expansion<br />

In 1980, HCL launched Far East Computers in Singapore to market<br />

computer products in Asia and in 1981, HCL introduced a 16-bit<br />

processor computer. HCL pioneered relational database management,<br />

networking, and client-server solutions in the Indian market in<br />

1983. Liberalization of computer technology imports in the mid-<br />

1980s opened India to personal computing. HCL launched its own<br />

Unix-based BusyBee brand PC and formed HCL Office Automation<br />

to provide business IT and network solutions. In 1987, it was India’s<br />

largest company by revenues.<br />

With SCI Systems as its manufacturing partner, HCL acted on advice<br />

from McKinsey and briefly entered the U.S. computer market as<br />

HCL America, headquartered in Silicon Valley. As the first Indian IT<br />

company to start a U.S. company, HCK was making a bold move,<br />

but when the market collapsed for minicomputers soon after, HCL<br />

changed course, applying its Unix capability to consulting.<br />

150

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