Two years after the Compaq merger, HP India continued with growth across all divisions and subsidiaries even as it consolidated structurally. At HP India, the entire sales force moved to the Enterprise Systems Group (ESG), now called the Customer Solutions Group (CSG)-a common sales front to enterprise, government and SMB. Retail remains with the IPG (Imaging and Printing Group) and traditional reseller channels with the PSG (Personal Systems Group).

In December 2003, HP ISO hived off its services business to Digital GlobalSoft while retaining its R&D activity. In 2004, DGS began its transition from listed company (51% HP) to captive HP subsidiary. Legal closure of this entire transition is effective from fiscal 2004-05. In terms of sales, the PSG saw high growth in both desktop and laptop sales; IPG (the only business inherited intact from pre-merger HP) saw a shift away from the crowded inkjet printer market to all-in-one (AIO) devices, with the Inkjet share dropping to nearly 50%. The new inkjet-AIO segment was almost 90% HP, indicating a stronger product, higher prices, besides, most importanlty, a brand-new base for future supplies sales. 

Services, through HPS, has been the success story for a couple of years, coming neck to neck with IBM in the domestic market. Major new deals with Bank of India (a ten-year managed services deal, including core banking), P&G and Ericsson, and Bharti (for Airtel NOC). ESG saw major wins in telecom, banking and manufacturing from customers including Hutch Idea, BSNL, SBI, Citibank, ICICI, BPCL, Indianoil, and TVS Motors.

The good health across all areas, as well as the services and supplies buffers, will come in handy in the year ahead, with fierce competition building up in peripherals-and in systems, as duty drops further.