While Shiv Nadar, founder and chairman, HCL Tech, is confident the company will not be sold out in the next 10 years, Roshni Nadar, executive director and chief executive officer, HCL Corporation adds that the same is unlikely for the next 20 years.
Senior leadership pipeline in this industry has to be very good. In all corporations, the longer the senior leadership just stays on, somehow those corporations do not do well.
Founder & Chairman
Shiv Nadar, founder and chairman, HCL Tech has put to rest all rumours of a sell-out to Accenture and has added that he wouldn't even consider it.
Speaking to CNBC-TV18 on the company's outlook, Nadar says there is not even 1 percent truth to talks of selling out to IT major Accenture.
The rationale, he explains is the different cores of the companies. "If you see the HCL's core, its core is technology. Accenture's core is consulting. We are different kind of organisations. We serve clients in a different manner," he adds while rubbishing any sell-out talks.
While Shiv is confident the company will not be sold out in the next 10 years, daughter Roshni Nadar, executive director and chief executive officer, HCL Corporation adds that the same is unlikely for the next 20 years.
Below is the edited transcript of the interview to CNBC-TV18.
Q: What are the various achievements and milestones that you have been able to achieve both at HCL Tech and at the foundation? HCL Tech now onto its three-decade long journey. We have seen a huge jump in terms of profits, revenues, market capitalisation. The Shiv Nadar Foundation now onto its 20th year. So milestones on both fronts, but you are currently more passionate about the foundation, aren't you?
Shiv Nadar: Yes. I have been passionately doing this for the last five to six years.
Q: I have had this conversation with you in the past. When everyone was talking about who is going to succeed who not just at HCL, but at Infosys and Tata Consultancy Services ( TCS ) and so on and so forth, around that 2008 period everyone said Shiv Nadar is not going to take a backseat, Shiv Nadar is going to continue to hold onto the reins. No one assumed that you would actually let Vineet Nayar come and pretty much run this place as his did. Do you today miss having him around?
Shiv Nadar: There is somebody else, so the show goes on.
Q: Is there a sense of continuity and the fact that perhaps you would have liked to deal with senior leadership pipeline differently than it has panned out today?
Shiv Nadar: Senior leadership pipeline in this industry always has to be very good. If you have seen, in all corporations, the longer the senior leadership just stays on, somehow those corporations do not do well.
There will be a correlation if you just watch this closely. If you take some large corporations in this industry and just scan it for the last 30 years, you will see that they will have this management change coming up, otherwise they will be receding. It will be one of the two. I miss Vineet for a different reason, because he is a very dear friend. Having him as a colleague is different. Anant is an executive and I do not know him very much.
Q: I want to draw your attention to what we have seen happen as far as Infosys is concerned. That raises the question of whether a lot of these companies which were promoter run where management and ownership has been separated quite successfully, they have not been able to breakout of the founder-promoter mould in that sense. We have had to have Narayana Murthy be brought back as far as Infosys is concerned. Do you think it is going to be tough for companies like Infosys, for companies like HCL to in that sense cut the umbilical cord?
Shiv Nadar: I do not know about Infosys. I can talk about HCL. At HCL, we cut the umbilical cord very long time ago, because I stepped out of the only operative company at the time which is HCL. At that time I took a backseat and took a mentoring rule and that is the point in which NIIT started growing. After that, all the constituent units of HCL Technologies started growing. My role became a mentor a long time ago. I stopped playing an executive role about 19 years ago. It is as far back as that.
Q: How do you see future as far as HCL Corporation and HCL is concerned? What is the sort of positioning that you see as far as both these entities are concerned? Where would you like to see them 30 years down the line?
Shiv Nadar: Thirty years down the line is very difficult to visualise.
Q: Say 5-10 years down the line?
Shiv Nadar: In 5-10 years down the line HCL Technologies will continue to be largely owned by HCL Corporation. That is definitely likely to continue.
Q: The market buzz on possibly selling out to the Accentures of the world, no truth to that?
Shiv Nadar: Not even 1 percent truth.
Q: Why not? You would not consider it?
Shiv Nadar: Of course I would not consider it.
Q: Because this is something that you have built.
Shiv Nadar: Yes. If you see the HCL's core, its core is technology. Accenture's core is consulting. We are different kind of organisations. We serve clients in a different manner.
Q: So selling out is not an option?
Shiv Nadar: Definitely not.
Q: Not in the next 5-10 years?
Shiv Nadar: After 10 years I do not know, but till then, no.
HCL Tech stock price
On March 27, 2015, HCL Technologies closed at Rs 963.65, down Rs 22.85, or 2.32 percent. The 52-week high of the share was Rs 1058.20 and the 52-week low was Rs 628.50.
The company's trailing 12-month (TTM) EPS was at Rs 47.96 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 20.09. The latest book value of the company is Rs 112.02 per share. At current value, the price-to-book value of the company is 8.60.
Set email alert for
ADS BY GOOGLE
video of the day
Budget 2015-16: Revive capex through savings on cheap crude says Kotak Sec