New Delhi, India, July 14, 2014: Lenovo India and HCL Infosystems Ltd., India’s Premier Distribution, IT Services and Solutions Company, today announced their strategic alliance that would strengthen Lenovo’s consumer retail and commercial business by leveraging HCL Infosystems’ strong sales, distribution and after-sales support network. Under this partnership, HCL Infosystems will sell and support Lenovo’s entire portfolio of PCs and Tablets, as well as enhance their existing cooperation in distribution of tablets, through its wholly owned subsidiary; Digilife Distribution and Marketing Services (DDMS), the distribution arm of the company with an exhaustive last mile connect and support in rural markets and urban markets across India. The partnership is poised to trigger growth and extend businesses for both companies.
Today, HCL Infosystems is one of the top 3 distributors in India in terms of revenue with a distribution network comprising 1,00,000+ retail outlets, 800+ direct and micro-distributors and over 400 channel partners across 15,000 towns and 664 districts in India. The company has been immensely successful in the BFSI vertical, and currently owns 100+ active accounts covering over 25,000 branches of nationalized banks. It also enjoys a robust partner base of 600 resellers in the SMB segment. On the supply operations and hardware support front, HCL Infosystems boasts of a network of 7000+ direct field engineers, a support base of 3mn+ assets at 70,000+ sites, an integrated customer contact centre, 35 IT-enabled depots and 21 regional logistics centers.
Speaking on the occasion, Managing Director of Lenovo India Amar Babu said, “HCL Infosystems has one of the largest sales and distribution networks in the country, and this partnership presents a great opportunity for us to expand our reach, and offer better after-sales service (in both commercial and consumer segments), across product categories. HCL Infosystems provides an unmatched distribution network and extensive service coverage especially in the enterprise segment. Using this partnership, Lenovo will be well placed to tap a larger piece of this market on an incremental basis, thus enhancing the company’s market share. We are excited to partner with HCL Infosystems, as we focus on our collective strengths, serving a broader range of customers with industry leading products and solutions.”
Speaking on this alliance, Harsh Chitale, Managing Director and Chief Executive Officer, HCL Infosystems Ltd. said “Our partnership with Lenovo is an absolute fit to our strategy wherein we are focused on building and growing our enterprise & consumer product distribution business along with attached services. This partnership is a concrete step towards driving our transformation story and a testimony to the expertise and value addition we offer to global brands like Lenovo. We envisage this complimenting association playing to the strengths of both partners and growing manifold in the future.”
Also commenting on the occasion, Bimal Das, Joint President – Distribution Business, HCL Infosystems, said “The combination of Lenovo’s unparalleled & innovative product line and HCL’s proven expertise in distribution and after-sales services will help achieve greater synergy between our businesses. We are delighted to extend our existing engagement with Lenovo and foresee a huge success in unlocking new markets and channels through this endeavor.”
According to Manufacturers Association for Information Technology (MAIT), the sale of desktops and notebooks is expected to grow from 11 million units in fiscal 2013 to 15 million units in three years at an annual growth of 6%, with multinational companies having a major play. Today, Lenovo is the world’s largest PC maker for the 4th consecutive quarter, with a stated goal of becoming a clear leader in the PC+ (Internet-enabled devices) space as well. This partnership is a step forward to build on the company’s strength in the PC business, while fortifying its PC+ ambitions. Furthermore, this is also expected to enhance Lenovo’s presence in the BFSI and mid-market verticals, where HCL Infosystems has been traditionally strong, and improve its service footprint substantially. Lastly, this will enable HCL Infosystems to maintain its stronghold in the Indian market, while simultaneously increase its services business.