Compaq’s systems and services and HP’s imaging and printing added up to a strong lineup, as the new HP quickly recovered from a small dip and ended the year with growth
Monday, August 25, 2003
MD
Balu Doraisamy
Startup-Year
1989
Products
& Services
Printers, servers, workstations, PCs and services
Employees
736
Address
Chandiwala Estate, Maa Anandmai Marg, Kalkaji, New Delhi 110019
Tel
26826000
Fax
26826059
Website
www.hp.com/in
Balu Doraisamy President
OTHER DIRECTORS
Neelam Dhawan
ESG
Ravi Aggarwal
IPG
Ravi Swaminathan
PSG
Kapil Jain
HPS
Deepak Shah
Finance
Zarir Batliwala
HR
HP-Compaq merger—integration complete
14 Superdomes sold. Good Alpha server sales, Tandem upgrades
Nearly Rs 130 crore from storage
Big buyers were telecom and banking. Government sales low
Growth in printing/imaging, but average price falls. Consumables strong
Strong, complementary product line, now backed by HP brand
Strong enterprise links, services play
Traditional channel affinity weakened post-merger; channel glitches could let competition move in
This is the new HP. Globally, it assimilated Compaq. In India, it was the
other way around. Other than HP’s key printing and imaging group (IPG), all
the groups got managers from Compaq: personal systems (PSG), enterprise, and
services. And the ex-Compaq chief is president. By end 2002, "the
integration was complete," and relatively smooth. HP took a revenue dip
April to October, but then grew an estimated 10% in second half 2002-03.
The #4 position comes from Compaq, which was at #4 for two years. After
adding HP (#10 earlier) the merged entity stays #4. But even ignoring HP’s
143% ‘jump’ with Compaq added in, the merged entity shows real overall
growth, surprising many. And HP India now represents 80% of the revenues of HP
operations in India, and over 7% of HP’s APAC revenues.
But it was a tough year, with tight margins. The IPG’s inkjet volumes grew
with PC bundles, but prices dropped. The margins came from consumables—tomorrow’s
battlefront—and from high-end products like the DesignJet large-format
printers. The new AIO (all-in-one) products are hot too—and they tend to
encourage heavy personal use, and thus consumables sales.
A global "channels with PSG, retail with IPG" model was
force-fitted onto HP India too. Things settled down—and Tech Pac alone sold
over Rs 450 crore of HP products—but the channels, a traditional HP strength,
saw some discontent.
Desktops and Intel servers sold modest numbers, but a shift to the higher end
(blade and multi-CPU servers with clustering) helped. And HP finally sold 14
Superdomes, to SBI, TCS, VSNL, Citi, et al, taking the India base to 17. Telecom
and BFSI brought in Alpha buyers too: HDFC, HLL, Bharti, Hutch, et al. HP
NonStop (Tandem) server sales were low, but upgrades by BSE, ICICI, and others
brought in the business.
Software (OpenView and OpenCall) added up to over Rs 20 crore. Storage
grossed HP an estimated Rs 130 crore (plus supplies)—HP won key deals against
EMC and Hitachi.
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