A continuing shift toward services kept all group companies growing and profitable, and helped the HCL group stay No 1. Not bad for the group (including NIIT) that was primarily hardware-oriented till 1994-95.

While the group virtually reversed its ratio of hardware to software and services turnover from 83:17 during 1994-95 to 38:62 during 1997-98, this ratio further down to 23:77 during 2000-01. All this thanks to Shiv Nadar who has been able to drive the group through this paradigm shift seamlessly, and quietly. In fact, ever since Nadar initiated this change, the group has been constantly moving up the DQ Top 20 list of giants—from seventh in 1997-98 to number two in 1998-99 and to the top slot a year ago. And this time, HCL is number one for the second consecutive year.

This past year was stable: no big shifts or change of guard. Nadar stayed focused on HCL Technologies (HCLT) as chairman and CEO. Ajai Chowdhry, also one of the six original promoters, is HCL Infosystems’ (HCLI) chairman and CEO. NIIT has Rajendra S Pawar as chairman and Vijay K Thadani as CEO. NIIT is a group company only in an informal sense. It "spun off" from HCL—its founders were HCL employees, funded by Nadar, who now has about 20% of the equity. In fact, Nadar has been categorical in saying that except for HCLT, he is not involved in the other two companies’ operations. ‘‘For their management, I am a friend, philosopher and guide, and they need to generate returns for the shareholders—which includes me,’’ he says.

Value is one thing that the three companies have definitely been creating. While HCLI’s revenue went up to Rs 1,276 crore in 2000-01, doubling growth to 28%, NIIT closed its books with Rs 1,375 crore. The star performer was HCLT, which grew 59%, versus 28% the previous year—to Rs 1,322 crore. What came as a bit of jolt was the dipping growth rate of the blue chip NIIT, from 1998-99: 31%, to 27%, and finally at 26% last fiscal. As the first one of the lot to cross the Rs 1,000-crore mark (1999-00), NIIT has taken on itself the target of growing tenfold to Rs 10,000 crore by 2005-06—a very tough target. Overall, the HCL group grew its revenues 51% last fiscal, to Rs 4,413 crore. HCLI, on the other hand, had mixed fortunes. Its domestic enterprise systems sales and services, and software services exports, grew; profits crossed Rs 24 crore. But it gave way to aggressive MNC brands, losing its top PC slot to Compaq. Nevertheless, HCLI kept up performance by maintaining a good blend of its hardware, networking services and software services business.