HCL Tech ties up with Japan's NEC

By agencies   |   Friday, 03 June 2005, 19:30 IST
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NEW DELHI: Japanese electronics maker NEC Corp. has formed a joint venture with India's HCL Technologies Ltd. to develop software and hardware design, the companies said on Friday. NEC, a major provider of 3G mobile phones and telecoms infrastructure, will have a 51 percent stake in the $5 million venture, with the remaining held by HCL, India's fifth-largest software service exporter. "In the Japanese information technology market today, the focus is shifting to mobile embedded software," Toshihiko Takahashi, executive vice-president of NEC said. Shiv Nadar, the founder of HCL Technologies, said the venture would work mainly on wireless and mobile applications security solutions and grid computing. The venture is expected to generate annual revenues of about $25 million in three years, and has the potential to grow to $75 million to $100 in five years, he said. The venture, to be operational by October, will have about 250 employees within three years. HCL and NEC already have an existing business relationship for the past 7 years.