HCL Tech resolves differences with JV partner

Monday, 25 November 2002, 20:30 IST
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NEW DELHI: HCL Technologies, one of India's leading software development and services major, Friday said it had resolved all differences with its joint venture partner Perot Systems. In recent times there has been intense speculation in the media on HCL Perot Systems, a 50:50 joint venture between HCL Tech and the US-based Perot Systems, breaking down due to differences between them. "HCL Technologies and its joint venture partner Perot Systems Corporation have arrived at an amicable resolution with reference to the management structure of HCL Perot Systems," said an HCL statement issued to the Bombay Stock Exchange. "Accordingly all legal actions initiated earlier by the concerned parties have been withdrawn." The differences between HCL Tech, India's fifth-largest software exporter, and Perot Systems cropped up after the latter pushed for some changes in the senior management level of joint venture HCL Perot Systems. The spat between the partners had reached a point where HCL Tech was contemplating buying out Perot Systems' stake in the joint venture. "We have agreed upon some operational measures that are designed with one goal in mind -- to extend the track record of customer services and financial success that HCL Perot has achieved," said Ross Perot Jr., chairman of HCL Perot Systems. "The board has agreed upon measures to clarify and solidify our management structure which would enable the company to grow robustly both in revenues and profitability." HCL Perot has 10 offices in the U.S., five in Europe and four in the Asia Pacific region. The company has two development centres in India -- at Noida and Bangalore -- and one in Surrey, Britain.
Source: IANS
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