HCL Peripherals begins to reveal its colours

What started as a research and development (R&D) wing for the group two decades ago is now a strategic business unit (SBU) producing around Rs270 crore worth of products and services.

The Chennai-headquartered HCL Peripherals has three business wings — display products (computer monitors, plasma monitors / television, keyboards that contribute a hefty 60 per cent to the company's revenues), networking (active and passive, wireless solutions, switches, bridges, routers, racks, etc, that yield a 10 per cent revenue) and technology products and services (thin clients, touch screen kiosks / monitors, anechoic shielded chamber, with a 30 per cent share of the company's revenue).

Earlier, the division was content supplying monitors and other products for its parent and also other original equipment manufacturers (OEM).Incidentally, HCL Peripherals is the only outfit in the country that makes and supplies monitors to other OEMs — nearly 85 per cent of the monitor production is supplied to OEMs including its parent.

However, the focus changed three years ago when as a part of a de-risking and client diversification strategy HCL Peripherals decided on develop a channel sales network.

However, the initial challenges were tough. "The end user knew the HCL brand and the products but not the channel partners / system integrators." says V Venkatesan, national head, networking products. "Further, our volumes were low while the prices were on the higher side. It took time and effort to familiarise users about our products.".

Though the efforts were successful, the division could have done better. For one, the division has yet to get out of the comfort of being a captive market supplier and dirty its hands in the channel sales, says an industry tracker. What he says is true as the channel business generates around Rs20 crore.