Top Story


Home >> Advertising >> Article

HCL Infinet piggy rides on parent infrastructure

Font Size   16
HCL Infinet piggy rides on parent infrastructure

The HCL group’s recently-launched internet service provider arm, HCL Infinet, is keeping its purse strings tight and fanning out geographically, by riding on parent HCL Infosystem’s technical and sales infrastructure.

So, while other ISPs with less distinguished parentage remain confined to the bigger cities, HCL Infinet has rolled out to cities like Guwahati, Varanasi, Allahabad, Amritsar and 38 other locations within seven months of its launch. The reason is simple. HCL Infosystems is among the largest PC sellers in the country, with presence in 150 locations.

So, in most places, HCL Infosystems’ 100-per cent subsidiary HCL Infinet didn’t need to buy any office space or hire staff.

Satyam Infoways, however, has as much reach as HCL Infinet, though they have adopted the franchisee model for many smaller cities. The cost of adding an additional city has been around Rs 30 lakh for HCL Infinet, which helps in keeping their customer acquisition cost on the lower side.

The company expects 2/3rd of its revenues to come from the corporate sector, as the home segment has been a letdown for all ISP players. The company has priced its consumer pack at Rs 299 for unlimited supply, which is the prevailing norm.

The analyst points out that the ISP industry kicked off with decent charges of Rs 12/hour in the late 90s, but price war in the last two years has pushed rates to ridiculously low levels.

In a tight market, therefore, HCL Infinet’s strategy is clearly to hold on to dear cash. The company, at present, has around 62 people, with only 31 in the marketing works.

HCL Infinet was launched with a capital of Rs 15 crore, and the company feels that they would break-even in three years.


Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

Launches third phase of TVC campaign ‘Think it. Done’

Based in Mumbai, Usha has nearly two decades of experience in the Indian media and entertainment sector and will serve as a strategic advisor to H+K’s diverse portfolio of clients with a special empha...

Report based on media channel data in 96 countries and detailed findings from the world‘s key ad markets, which between them account for approximately two-thirds of the value of global advertising tra...