HCL CHIEF SHIV NADAR IN HIS ENTREPRENURIAL PURSUIT

What was the initial investment that you had to invest to start HCL?
Swamy

With the seed money of Rs 1.8 lakh, which included a loan from my provident fund and personal savings, I and my 5
fellow founders became distributors for Microcomp calculators. By 1976, we had created a sum of Rs 20 lakh, with Rs
5.25 lakh contribution from the UP Electronic Corporation.

It was a sort of first, being a Public-Private Partnership, as it was then easier for PSUs to get a license to do
business. The company was formed as a private limited company with the Uttar Pradesh Government holding a 26
per cent stake. By 1981, the UP Government held only 10 per cent, and by 1986, HCL bought the rest out.

Before starting HCL, did you work anywhere? Why did you choose the field of technology to start your
business?
Nitin Gari, ngari@hp.com

My journey began with DCM in 1968, which was among the countrys top 5 industrial groups, in its textile division. My
mentor, Vinay Bharat Ram, the DCM scion, asked me at the age of 23 in 1971 to head the new electronics wing
DCM Data Products. DCMs data products division was already doing some interesting work for the 4-bit
microprocessor-based desktop calculators, which were the precursors to the computing machines of today.

At the time of the advent of the 8 bit microprocessor in the 1970s, many people left their jobs, including Steve Jobs,
Bill Gates as they believed that the microprocessor would change the world, and it did. This bunch also included me
and my fellow founders.

After conducting robust researches we were faced with a choice of getting into biotechnology or building computers.
The possibilities were endless; however, coming from a strong engineering background, technology was a natural
pick. As things turned out, biotech is yet to take off as significantly as IT did and today we have managed to build a
successful IT powerhouse which is still growing.

What is needed to start an IT company money, good team or a good idea?

Usha Muniyappa

There are two things which I feel are imperative to build a company the spirit of entrepreneurship and a strong
vision. An entrepreneur has an ability to pick signals from the future and fold them into discernible projects today.
Entrepreneurial ability is more significant than executive ability. Money can be raised, teams can be hired; however,
entrepreneurial skill is the key driver of the vision.

Are there any initiatives you are sponsoring to promote entrepreneurship for your countrymen? The
sponsorship need not be only with respect to funding but can be sharing your entrepreneurship wisdom for
start-ups or can be academy of mentorship for budding entrepreneurs. Whats your views on this?
Gurpreet S. Kapoor

Problems of raising leaders / entrepreneurship range from the very basic (malnutrition, sanitation, access to
education, infant and maternal mortality) to the much more complex (terrorism). As a social entrepreneur, one has to
choose an area you will be most effective at and which is close to your heart.

I am a product of education and I have felt its power in transforming my life. Therefore I established the Shiv Nadar
Foundation with a vision to give back to the society what it had given me. Under the Shiv Nadar Foundation we
established the SSN Institutions which has already become a top 10 private engineering college of India; and
VidyaGyan which is a radical concept to provide world-class school education to meritorious students from
extremely challenged backgrounds.

Besides the above, I do commit my time at The Indus Entrepreneurs (TiE), and while it cannot be the foundations
sole focus, I do regularly interact and share my learning with budding entrepreneurs virtually and at forums. It is
always a deeply touching experience when I see these growing leaders reflect the same spirit, as I did when I kick-
started my journey with HCL.

What made you turn your attention towards philanthropy?

Jai
I believe philanthropy is a genuine state of mind. It is a state that one arrives at when one feels empowered and
equipped to fill the gnawing gaps in the existing system. Though government and its aided functions have the primary
responsibility for the caretaking of its citizens, it is increasingly seen that certain areas of focus like research in
healthcare, technology aid, or education need private intervention for greater impact.

By their nature, government and its functions have limited ability to implement efforts, for they are mired with several
other priorities. This is where we need to step in. Corporate organizations are recognizing the larger and more
important role they need to play in transforming India an emerging economic powerhouse than just running a
business. This indicates a greater recognition of the overall development, empowerment and transformation for any
economys sustainable progress and success.

Today everybody realizes that education is vital to reap our demographic dividend and the need is to create an
enabling environment for the underprivileged.

The Shiv Nadar Foundation has embarked upon providing transformational education to meritorious students who
are challenged by limited means. Our strategy is to empower these students intellectually, socially, and physically to
outgrow their circumstances and make a mark in the world. We envision these leaders to then go back to the roots
they came from, and uplift their communities by giving them the same opportunity as they are being given now.

Do you plan to induct your daughter into HCL board? Will she replace your position in the company in the
future?
Student

As of last year, Roshni was appointed as the CEO and executive director of the HCL Corporation, which is the
holding company for the two listed HCL entities HCL Technologies and HCL Infosystems. She is not involved in
either of the technology companies held by the Corporation.

Roshni is a trustee of the Shiv Nadar Foundation, which is created out of HCL Corporation. She is responsible for
strategic decision making regarding overall future directions for the Corporation - while the operating companies
continue to be professionally run by their respective CEOs and Boards of Directors.

Why did you start HCL?

Usha sivaraman, usha.ram@gmail.com

I started my career with DCM in 1968, where I started heading the DCM Data Products in 1971. DCMs data products
division was already doing some interesting work for the 4-bit microprocessor-based desktop calculators, which were
the precursors to the computing machines of today.

At the time of the advent of the 8-bit microprocessor in the 70s, many people left their jobs including Steve Jobs, Bill
Gates they believed that the microprocessor would change the world, and it did. This bunch also included me and
my fellow founders. After conducting robust research we were faced with several choices. The possibilities were
endless; however, coming from a strong engineering background, technology was a natural pick. This dream led to
the conception of HCL in 1976.

Also Read: Philanthropy is a state of mind: Shiv Nadar.

Who is your role model?

Kavita Menon, kavita.menon@gmail.com

There are many I have learnt from in my life. Vinay Bharat Ram, who mentored me in DCM and offered me a platform
to realize my potential by heading the new electronics wing at DCM the DCM Data Products Division, at a very
young age, is someone I admire and respect. Another man I admire is FC Kohli, who is the father of the Indian
software industry, for his foresight and vision to lead India into this powerful phenomenon which today has become a
major industry for our economy.
Then, there is E. Sreedharan, who has time and again delivered projects in time proving his commitment and
competence in establishing an extensive metro network across Indian cities. Andrew Grove is another thinker I
admire because of his philosophy of running a business. In a globally dynamic environment it is imperative to
constantly question status quo. Only the paranoid survive is one of the most important management thoughts most
relevant to business environments which exist today.

How are you keeping tab on the things that are happening in your company, which has thousands of people
in different regions?
Hari Prasad, hari.prasad@medhaasolutions.com

Both HCL Technologies and HCL Infosystems are professionally managed and run by an extremely competent board
of directors and their respective CEOs at the helm. As for me, I had stepped back and thrown the key over my
shoulder in the 1980s to Ajai Chowdhry for HCL Infosystems, and to Late S. Raman, and then Vineet Nayar for HCL
Technologies. HCLs presence is spread across 29 countries and we have always encouraged local employment in
different geographies where the senior management in different countries monitors the operations in their respective
regions.

Leaders are empowered at all levels, verticals, horizontals and geographies, to be able to take decisions at their
level. The responsibility only cascades upwards so the CEOs and I have a view of what is happening across the
businesses. I do view the overall progress of the business during our board meetings and lend any strategic direction
when required.

What is your plans after retirement? When do you want to retire?

Jeevan

I have withdrawn from the active management of HCL Technologies and HCL Infosystems, and this has been handed
over to an extremely competent Board of Directors and their respective CEOs at the helm, who have been nurtured to
manage complex businesses.

Now I only offer strategic vision and direction to the company. My current focus is on taking my entrepreneurial
expertise to philanthropy. I am increasingly spending time on the Shiv Nadar Foundation where I am building lasting
institutions of excellence of a different sort, whose impact will perhaps be equal if not larger to that of HCL. Many
people are aware of what the Shiv Nadar Foundation is doing My vision is to empower individuals with
transformational education to mould leadership. At these institutions, education isnt about literacy, numeracy or self
sufficiency alone, but the kind that builds game changers, world changers.

The key initiatives of the Shiv Nadar Foundation the SSN Institutions and VidyaGyan have today come to be
among Indias top private engineering colleges and schools. Their core focus is to provide access to world-class
education to economically challenged but meritorious sections of the country.