The world, as we know it, is a heavily competitive domain- enamored with contrivance, captivated by triumph, but woven together with uneven fortune. It may sometimes seem implausible to push forward with our journeys when our destinations feel so out of reach. However, on 29 June 2021, Dr.Ajai Chowdhry brought to us encouragement of a different sort. He told us his story, a story that blazoned how “anyone can become successful as long as they have belief in what they are doing”, even when you’re seemingly trapped in a dark damp corner of the vast ocean of opportunity, even when all the odds appear to be stacked up against you…
Dr.Ajai Chowdhry is a man of many successes. One of the six founding members of HCL, he began his journey with discernment, with an aspiration of bringing India its very own microcomputer. The sheer clarity of vision and hard work led to a revolution and laid the foundation for the Indian IT industry, taking India to the league of major economies of the world. HCL, India’s original IT garage start-up founded in 1976, today is a global enterprise and Dr. Chowdhry has been instrumental in driving the growth of HCL. The company has been awarded Business Super Brands by the Brand Council and rated the most trusted Indian IT brand by Economic Times for 2010-11. Dr.Chowdhry has constantly been driving a vision of “IT for the masses” and has been on several Government committees working towards taking PC and broadband into every village in India. He is the Chairman of the Electronics Sector Skills Council and Chairman of the FICCI Start-up Committee. In 2011, the Hon’ble President of India conferred Dr.Ajai Chowdhry with the prestigious Padma Bhushan, one of the highest civilian honours, in recognition of his consistent contribution in the field of IT. In cognizance of his key role in championing the cause of the domestic Indian IT market, Dr.Chowdhry has also been awarded the Data Quest IT person of the year 2007, among several other laurels.
The odyssey commenced in the stringent year of 1975, when Dr.Chowdhry and his five comrades, devoid of any money and fame, embarked on an experiment. The odds at the time, unfortunately, weren’t in their favor. Emergency had been declared in the country by Prime Minister Indira Gandhi, seizing broad-mindedness and placing shackles on the creative mind. India’s state of affairs in 1975 wasn’t very delectable to the entrepreneur. India persevered as a closed market, with no imports allowed for technology. Besides, the period only held a hundred computers in India. But the dream stood stoic in the hearts and minds of the sagacious six- a dream fueled by an item that was significantly undersized as compared to the tech of the time. They envisioned a new world stemming from the microprocessor.
Blood, sweat, and tears were put into accumulating 1.86 lakhs to kickstart their first venture, Microcomp with the simple objective of generating a little extra cash. Big companies were predominate at the receiving end of the government’s support, easily trodding over the start-ups of the time. Microcomp was a comparatively minuscule company disseminated across the country, that sold calculators. Working with what they had, a cramped room in a partner’s household in Delhi was their initial workplace and a dining room served as equivalent to a conference room.
1976 came with its developments. As they pursued their quest for a license for their company, they crossed paths with the UP Electronics Company, a company that already owned one. A joint sector was agreed upon and having 26% of their company taken, the company was renamed “Hindustan Computers Limited”. The 4-bit microprocessor-based scientific computer was the first concoction that emerged from all the deliberation and effort.
Appeals were made to several IITs as well as to other teachers and professors, asking for support as engineers, products of those very institutions. With august marketing and adroit salespersons, the product began to sell, even before the first model had even been manufactured. The first order was received from the prestigious IIT Kharagpur and numerous others rambled in after. These included 6 orders from IIT Madras, with a testing deadline imposed. Dr.Chowdhry recalls that the professors told him that if he couldn’t deliver the computers by the 31st of March the next year, their money would be lost. “Luckily on the 28th of March” Dr.Chowdhry recollects,” I went to the airport, picked up the six computers that had been shipped from Delhi, and went in my beat-up old Fiat to deliver the computers.”
In March 1976, the Emergency was withdrawn and the Janta Party emerged victorious. Their policies didn’t allow big non-Indian companies in the country and this was a boon to their slowly evolving company. The market eventually began to open up in 1977-78. IBM moving out conferred great opportunity and HCL even devised an 8-bit commercial computer with an added data entry machine and a battery backup. They addressed the first-time user market and only later came to realize that it was about that time that Tech Giant, Apple created its first PC. Massive competition arose in the Indian market with mammoth companies like Sarabhai, Tata, DCM, and ICL constantly running for gold.
1980 was no short of surprises either, the year being host to two big events. The first was Indira Gandhi regaining her power and taking up office as Prime Minister once again. The second was a certain eventful plane ride on which Singapore’s EDB invited HCL to come to Singapore. Accepting the offer, HCL seized the moment and made good use of it. From studying the Market and Computerization to the Launch of ‘Abacus’ in August 1980 and the institution of the first software factory in Madras, HCL didn’t hamstring their fervor, frequently taking risks, continuously experimenting with new ideas. The business picked up to worth 1 million in 6 months.
With study, it was discovered that first-time users were unsure of the capabilities and limitations of computers and hence, were hesitant to invest in them. To overcome this, HCL brought new ideas to life, launching campaigns and issuing advertisements in the newspapers. As business blossomed, satisfied patrons proliferated the market’s growth and soon, more and more people were willing to buy these computers. They also made their mark as pioneers of the concept of EMI in India.
The fruits borne were sweet, with 10,000 enquiries for the product. The price was ₹3,64,000 equating to about 18 times the price of an ambassador car at the time.
An additional strategy was employed whereby HCL would interact with enquirers by holding demonstrations. Two desks were arranged for. The first was called “Cook”. This desk was the introductory, the one that softened the prospects. The second desk was called “Kill” and was presided over by proficient salespersons who left no stone unturned to get their product sold.
1989 saw Prime Minister Rajiv Gandhi’s rise to power and the implementation of his new computer policy. It was then that HCL released Busybee, the first desktop PC in India.
It was indeed a moment of pride for the founding members when HCL became India’s largest IT Company, just ten years after they started.
In 1989, when McKinsey came to India, they requested HCL to be their customer and taken aback by their engineers, eventually invited HCL to America. The endeavor wasn’t successful, but the experience did drive them to pivot to software.
1990-91 proved to be arduous as well. Saddam Hussain invaded Kuwait, Oil Prices skyrocketed, and a severe economic crisis spread its desolate wings over the Indian market. Following the assassination of Rajiv Gandhi, the government reformed with Narsimha Rao taking up office as Prime Minister and Manmohan Singh as Finance Minister.
From 1991-1999, HCL initiated a new growth phase and entered into a joint venture agreement with Hewlett-Packard.
A string of interesting events unfolded in the next couple of years. In 1995, HCL entered the telecom space. However, success didn’t reign initially causing HCL to swerve to ties with Nokia. In 1998, HCL picked up the R&D of HCL HP and created HCL Technologies intending to do design and engineering from India for the world.
Come the year 2000, HCL created history in the stock market with 12.5 times over subscription. It was the first time a small start-up had grown into a company on the stock listing. From 2000-2005, HCL was busy reimagining the market of Nokia in India. HCL also changed the pricing structure and created the ‘ODI model’ of Sales Management. The business grew quickly to 8000 crores, a success unseen by Nokia anywhere else in the world.
From 2008-2014, HCL reimagined and built new businesses, creating the Infrastructure Management Market, spurring phenomenal growth in software and building the system integration market in India. In a heavily competitive race for new businesses, HCL out-bid Infosys and bought the largest SAP Company in the UK for $800 million. HCL went forth and continued to win a large number of bids in India.
HCL today is a 10-billion-dollar company employing 1,76,00 people. It has grown from 455 million in 2000 to 10.5 billion in 2020. By this success story, Dr.Chowdhry wished to propagate the ideas of aspiration and perseverance. “It doesn’t matter where you come from, if you have belief, if you have an idea, you can create a company” Dr.Chowdhry declared “In India, companies that created businesses 6-10 years ago are worth 1 billion today. And that is recognition of entrepreneurship in India.”
This short period was truly an unforgettable one as we walked the trail of HCL, absorbing every moment, every fluctuation to glory, and every setback, apace overcome. A few questions about the tribulations faced by entrepreneurs due to taxation and licensing as well as the hardships faced in ensuring superior design and framework of the IITs were tackled following the end of the session.
With a few final words of fulfilling encouragement from Dr.Chowdhry, the session drew to a close. It was a most engaging and fascinating session and we are grateful to have been a part of it. I would also like to place on record thanks to VPD sir for his tireless efforts in getting great minds from varied fields to come to speak with us.
~Erika Vaz
Class 11