HCL Infosystems rallies on plans to phase-off manufacturing biz

HCL Infosystems rallies on plans to phase-off manufacturing
Shares of homegrown PC maker HCL Infosystems gained as much as 11.7 per cent in the morning trade on Bombay Stock Exchange (BSE) amid media reports that company is planning to phase-off its manufacturing business in the next few years to improve margins and increase organisational efficiency.

As per a PTI report, the company will instead focus on strengthening the services and distribution verticals.

"We will be stopping manufacturing. My distribution today does lot of distribution of PCs of multiple brands... We will be in PC distribution and in after sales services but will not manufacture HCL branded products some time in the future," HCL Infosystems CEO and Managing Director Harsh Chitale told PTI.

At 09:50 hours, shares of the company were trading at Rs 24.35 a piece, up 7.74 per cent from previous close on BSE. On specific timeline, Chitale said the plan is underway but "manufacturing is not something that is keeping me awake, its not part of HCL story now".

Dion Global Solutions Ltd.

Read more about: hcl infosystems, shares, sensex
Story first published: Monday, November 18, 2013, 13:07 [IST]
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