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HCL Infosystems plans plant in Pondy news
Our Corporate Bureau
22 October 2001
Chennai: Computer hardware major HCL Infosystems is in the process of setting up its fourth plant in Pondicherry. The proposed unit, at an outlay of Rs 12 crore, will enable the company to integrate vertically by getting into producing motherboards, plastic parts, memories, cabinets and printed circuit boards.

The company has acquired a nine-acre plot near its computer integration unit for the purpose. The proposed plant will occupy four acres, leaving the balance for future growth.

Pondicherry occupies an important position in HCL Infosystemss firmament. Its two other plants manufacture computer monitors, touch-screen kiosks, networking system racks and keyboards. The company supplies computer monitors to Wipro, Nexus Computers, PCS and others. The computer monitor and keyboard plants have a capacity to make 500 units each per month.

The company set its first plant in Pondicherry in 1996 with a monthly capacity of producing 3,000 computers. Since then it has ramped up the capacity to 20,000 computers per month. The company also shifted its peripherals division from Chennai to Pondicherry to reap in the benefit of tax incentives.

With uniform sales tax and value-added tax system on the anvil, why is that the company is still pitching for Pondicherry instead of the well-connected Chennai? Going back to Chennai will be more expensive as the labour cost is very high there, says factory manager C S Diwedi.

Agrees peripherals factory manager T Sridhar: More important is the governments attitude towards the business community. The Pondicherry government is investor-friendly and its officials are always accessible. In addition, the company finds it easier to import components from Taiwan, as the Chennai port is hardly four hours drive from the union territory.

The company has reported a negative growth in revenues and net profit during its first quarter ended 30 September 2001. The company has clocked a turnover of Rs 235.5 crore and a net profit of Rs 12.5 crore as against the Rs 292.56 crore and Rs 19.22 crore registered during the corresponding period last fiscal.

During the first quarter, the company bagged an export order of Rs 45 crore. The companys major clients include United India Insurance, Life Insurance Corporation, Bank of Maharashtra and Indian Overseas Bank.

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HCL Infosystems plans plant in Pondy