From a ₹187,000 Investment to a $12 Billion Global Giant
In August 1976, in a modest rented flat in Delhi’s Golf Links area that served as their “garage,” Shiv Nadar and five fellow engineers from Delhi Cloth Mills (DCM) pooled together ₹187,000 (about $12,000 then) to start Microcomp Limited. This humble beginning would eventually grow into HCL Technologies – today a $12.3 billion global IT services leader with presence in 52 countries.
The Impossible Dream: Building Computers in License-Raj India
The founders faced daunting challenges:
– Strict import restrictions under India’s License Raj prevented access to foreign technology
– The government viewed computers as luxury items rather than productivity tools
– IBM had just exited India in 1977 after refusing to dilute its ownership
Undeterred, Nadar’s team adopted a completely indigenous approach:
- India’s First Microcomputer (1978): HCL developed an 8-bit computer before Apple launched its Apple II in Western markets
- Breakthrough Software: Created a BASIC interpreter that became the standard for Indian government systems
- Improvised Manufacturing: Sourced components locally, often reverse-engineering available tech
Their first major client was the Uttar Pradesh government, which purchased computers for its lottery system. This established HCL’s reputation for delivering solutions under constraints.
The Singapore Gambit: Going Global (1980)
Recognizing India’s limited market, HCL made an audacious move:
– Established Far East Computers in Singapore with $30,000 capital
– Developed networking solutions for ASEAN markets
– Became first Indian tech company to go international
This overseas success gave HCL crucial foreign exchange and credibility back home.
Surviving the PC Revolution (1980s)
When IBM PCs entered India in the mid-1980s, HCL pivoted brilliantly:
– Launched Busybee – India’s first PC clone at half IBM’s price
– Developed Unix-based systems when DOS was dominant
– Created customized solutions for Indian conditions (voltage fluctuations, dust)
By 1989, HCL had grown to ₹100 crore revenue without any foreign collaboration – a rarity in Indian tech.
The 1991 Liberalization Crisis and Reinvention
Economic reforms nearly destroyed HCL’s hardware business as:
– Import duties dropped from 135% to 35%
– Global competitors like Compaq entered India
– Profit margins collapsed from 25% to 5%
Nadar’s masterstroke was the pivot to IT services:
- HCL Technologies formed in 1991 as separate software services arm
- Partnership Strategy: Allied with HP, Intel and Microsoft
- Global Delivery Model: Leveraged India’s engineering talent for offshore projects
The bet paid off – services revenue grew from $5 million (1991) to $100 million (1999).
The New Millennium Transformation
HCLTech’s defining moves post-2000:
– 2001: First Indian IT firm to enter the $100 million R&D services space
– 2003: Pioneered “Employee First” philosophy – inverted organizational pyramid
– 2018: Acquired IBM’s Notes/Domino business for $1.8 billion
Key Growth Drivers
- Indigenous Innovation Culture: 3,000+ patents filed to date
- Strategic Timing: Entered enterprise cloud services in 2008 before competitors
- Acquisition Strategy: 30+ strategic buys including Axon (UK) and Geometric
By the Numbers Today
– Revenue: $12.3 billion (FY23)
– Employees: 225,000+ across 52 countries
– Market Cap: ₹3.5 lakh crore (as of 2023)
– Fortune 500 Rank: #206
Lessons from HCL’s Journey
- Constraints Breed Innovation: Import bans forced self-reliance that became competitive advantage
- Pivot Before Crisis: Shifted to services before hardware business collapsed
- Think Global from Day One: International mindset even as a startup
From troubleshooting circuits in a Delhi flat to troubleshooting global IT systems, HCLTech’s story embodies India’s technology awakening. As Shiv Nadar often recalls, “We weren’t building a company – we were building an industry.” Today, as HCLTech invests in quantum computing and AI, its garage startup DNA of fearless innovation continues to drive its future.