Rajpal Leaves HP India, Revenue Touches Rs 760 cr  Hewlett-Packard Co.'s veteran for 29 years, and HP
India's president for the past decade, Suresh Rajpal, has resigned from the company.
Rajpal is joining, as CEO, of a yet-unnamed "IT solutions and services" start-up
"which will focus on finance and telecom sectors, and Internet-based
applications". The export-oriented software development firm has been floated by a $8
million venture capital fund of Indocean Chase, the Indian subsidiary of US-based
Chase-Manhattan. The company would have offices in Delhi and Bangalore, "which would
supply the personnel and technology expertise", and two offices in US and Europe,
"which would be the marketing front", Rajpal told Computers Today.
"After five years it's difficult to re-innovate your
job," says Rajpal, defending his resignation. Adds he: "At 55, this is almost
like taking voluntary retirement." HP India is yet to find a successor to Rajpal.
Rajpal has also announced the 1997-98 financial results of HP
India. In the November-October period, the company has clocked a turnover of Rs 760 crore,
a 41 percent growth over that of 1996-97. Nearly 70 percent of the revenue came from the
computer division. "The growth seems impressive, more so, because apart from Taiwan
and India, the rest of the HP companies in Asia-Pacific countries have cumulatively
garnered a -15 percent revenue rise," claims Rajpal.
Customs Stalemate on
Intel Insides
 The unseemly tangle surrounding the
definition of Intel's Pentium II and Celeron chips lies unsorted, to the discomfort of the
global chip major. The Finance Ministry continues to categorise them as populated printed
circuit boards (PCBs) and not as integrated chips. This difference in nomenclature creates
a new problem: it straightaway attracts 36 percent higher taxes.
Finance ministry sources claim that the new categorisation of
PCBs was made by the Department of Electronics (DOE) "which understands the
intricacies of technology". The ministry says it would revise its decision if the DOE
so recommends. Intel India chief Atul Vijaykar says the customs' confusion arose from a
lack of understanding. The DOE does not think so. It believes that these microprocessors
are, by look and function, circuit boards. Therefore, the higher duties.
Intel officials are trying hard to get the decision revoked.
In November, they had two rounds of talks with the DOE and customs officials in Delhi. The
Government has allowed Intel to clear the consignment against a bank guarantee for the
differential amount of customs duty. A final decision is expected in December.
PM Clicks on Cyber Towers
 Prime Minister Atal Bihari
Vajpayee inaugurated 'Cyber Towers', the first phase of Hyderabad's Hi-Tec City, an
integrated township promoted by L&T Infocity Ltd. He also laid the foundation for the
second phase--Cyber Gates Towers.
Speaking at the inauguration, Vajpayee said that the Union
Government would announce major initiatives to increase penetration of PCs, development of
trained manpower and promotion of computer-based education, all critical components to
make the country a major IT power.
Considered amongst the largest technology parks in the whole
of Asia, the Rs 1,500 crore first phase of the multi-stage Hi-Tec City project has been
completed in a record time of 15 months, said L&T officials. The second phase of the
Hi-Tec City is expected to be taken up in January 1999.
Meanwhile Satyam Infoway Ltd--a 100 percent subsidiary of
Satyam Computer--which became the first private sector company to launch Internet
services, is scouting for ten to 15 licencees in the category C for tie-ups where the
latter can use the Satyam Infoway bandwidth, billing system, its E-commerce system and
several other value-added services being provided by it.
Wipro's US Arm Focusses
On Semiconductor Design
 Wipro Corporation has incorporated EnThink
Inc., its subsidiary in the US, at an investment of $2.5 million. The new company, to be
based in Santa Clara, California, will address the emerging market needs for semiconductor
intellectual property (IP). Industry analysts Wessels, Arnold & Henderson estimate the
market size to grow to $1.4 billion by 2001.
Semiconductor IP is the software encapsulation of hardware
design. EnThink licenses such IP blocks to original equipment manufacturers (OEMs), who in
turn may incorporate them into their designs and fabricate highly complex `systems on a
chip'. The product conceptualisation, architecting, marketing and technical support is
provided from EnThink's US headquarters. The major portions of the design and development
work is being carried out from Bangalore.
Sridhar Mitta, CEO, EnThink, says "EnThink has certain
unique advantages in addressing the semiconductor IP market. We offer functional designs
and these get verified in silicon through our relationship with third-party pure-silicon
foundries. In addition, we provide customisation and integration services including
software components, bringing time-to-market advantage to our customers."
EnThink's current portfolio of IP blocks includes products in
the domains of IEEE 1394, Universal Serial Bus (USB), Ethernet and Asynchronous Transfer
Mode (ATM). IEEE 1394, the high performance and low cost multimedia bus, enables
connectivity between computers and consumer products at speeds of 400 to 1600 mb/sec and
is being incorporated into the next generation of digital consumer products and
peripherals.
Ispat Group Plans IndSat
Project
Steel major Ispat Group last month unveiled its own IndSat
project to provide the next generation Global Mobile Personal Communication Services
(GMPCS). The group has already obtained permission from the Foreign Investment Promotion
Board (FIPB) for its proposed venture, pegged at Rs 3,450 crore, in which the Indian
partner will hold 51 percent equity. The IndSat joint venture will cover the Asia-Pacific
region with a specific focus on the Indian subcontinent.
Ispat is searching for a foreign partner. The hot favourite
is US-based Hughes Network Systems, Ispat's partner in basic telecommunication services in
Maharashtra. Hughes Ispat Ltd has just begun its basic services in Maharashtra and Goa.
Ispat Group is believed to be also negotiating with the
Indian Space Research Organisation (ISRO) to launch its own satellite. The proposed
satellite would be having transponder capacities in C band, Ku band, L band and S band.
Besides, GMPCS, it will offer television and audio broadcast, and multimedia services
including broadband and Net channels.
Reliance Moots
Oil-telecom Pipe
Overseas, the idea of oil pipelines and telecom network being
laid together is not new. In India it is something to crow about. Private sector giant
Reliance thinks such an idea makes business sense.
The firm is lobbying hard with the government to lay a
3,000-km oil pipeline in western and central India for transport of oil and
petroleum-related products. Once the government clears the proposal--the first of its kind
in India because it is still in the domain of state--the corporate entity would pitch for
laying the telecom cables alongside. The proposed pipeline is expected to run through the
states of Gujarat, Rajasthan, Madhya Pradesh, Maharashtra and Andhra Pradesh.
Interestingly, under the existing telecom regulations, no
private company is allowed to lay and use its own network for inter-state traffic. It
remains a monopoly of the Department of Telecommunications. |
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