HCL Technologies & Celestica Form Innovative Joint Venture

HCL Technologies Ltd on November 14, 2006 has announced that the Company and Celestica Inc, a world leader in electronics manufacturing services announced that the two Companies have entered into an agreement to form a joint venture to provide complete concept-to- manufacturing(C2M) solutions for original equipment manufacturers (OEMs). Through this collaborative venture, the two Companies are driving change in an Increasingly competitive market by offering seamlessly integrated design, manufacturing and supply chain solutions. This is the first joint venture of this kind in the electronics industry.

Historically outsourcing has often involved multiple suppliers handling various aspects of the product lifecycle. This joint venture will provide a fully integrated product lifecycle solution to OEM customers — including product concept, design, engineering, manufacturing, fulfillment, sustaining engineering, reverse logistics and after-market services. The Company's broad and scalable design engineering capabilities combined with Celestica's existing strengths in hardware design for manufacturability and supply chain integration create an exciting new alternative for OEMs Seeking time-to-market and total cost advantages.

This joint venture cements an existing three-year relationship between the two Companies, through which the Company and Celestica have successfully provided integrated solutions to customers across the telecom, enterprise, consumer, medical, aerospace and semiconductor sectors. The Company's strength in software development complements Celestica’s hardware focus and is already being leveraged in Celestica’s existing Solutions Accelerator platforms for server blades, WIMAX, ATCA and storage equipment.

"By recognizing the increasing complexity of the marketplace, including rapidly changing customer demand, and the difficulties of managing multiple partners at different stages of the product lifecycle, a new market is being created through this joint venture. It removes a level of complexity, allowing OEM customers to focus on their core business and strategic initiatives," said Vineet Nayar, President, of the Company.

The venture is aligned with the Company's blue ocean strategy to create uncontested market spaces and create additional value for its customers, as well as Celestica’s strategic mandate to continually bring cost and time-to-market benefits to customers through its integrated global services and solutions. This strategic alignment will provide a unique proposition of a single point of contact for OEM customers — from concept to manufacturing — leveraging the strength of both Industry leaders.

Source : Equity Bulls

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