Companies & Sectors
HCL Tech acquires Volvo Group's external IT business
New Delhi : Software services provider HCL Technologies (HCL) said on Tuesday that it has acquired the external IT business of commercial vehicles manufacturers, Volvo Group.
 
"HCL has also acquired Volvo's external IT business, adding 40 new customers from the Nordics and France to its portfolio, further enhancing its market leading position in these regions," the company said in a statement here on Tuesday.
 
HCL has also signed an IT outsourcing deal with the Volvo Group.
 
The company, however, declined to comment on the size of the deal.
 
"We welcome over 40 new Volvo IT customers to the HCL client base. This addition enables HCL to achieve an even stronger presence in the Nordics and the wider European region, and accelerates our journey in these markets," said HCL president and CEO Anant Gupta.
 
Around 2,500 people working for the Volvo Group will transfer to HCL across 11 countries.
 
"Combining the strengths of HCL with those of the transferred parts of Volvo IT will result in an organisation with formidable capabilities and an intimate understanding of Volvo Group needs and opportunities," said Volvo Group's chief information officer and Volvo IT president Olle Högblom.
 
Volvo IT customers will now have the advantage of access to a broad range of differentiated global capabilities, tools and processes that integrate with technology environments at a global level, the statement added.
 
The tieup will help HCL in creating an automotive centre of excellence in Gothenburg based on the domain expertise of the Volvo team, to serve HCL's global automotive and manufacturing customers.
 
"HCL will deliver on a technology transformation roadmap that spans over 3,500 applications, 20 plus data centres, over 11,000 servers, 12 petabytes of storage, 20,000 plus MIPS of mainframe capacity and over 15,000 network devices,” the statement said.
 
"As part of this roadmap, HCL will also provide over 65,000 Volvo end users with access to productivity and user enablement solutions, such as Microsoft Office 365," it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Employees provident fund rate to be 8.80 percent
Chennai : The Central Board of Trustees of Employees' Provident Fund Organisation (EPFO) on Tuesday recommended an interest rate of 8.80 percent for 2015-16 on its retirement funds of employees, said a member.
 
"The interest rate recommended is 8.80 percent while the employee representatives at the meeting wanted at least 8.95 percent," Prabhakar J. Banasure, a board member and secretary, Bharatiya Mazdoor Sangh (BMS), told IANS.
 
The board meeting held here was chaired by union Labour Minister Bandaru Dattatreya.
 
"The minister said the rate is interim interest rate. This is something of a new procedure followed by EPFO," Banasure added.
 
According to him, the interest rate could have been declared after the 2015-16 balance sheet was audited.
 
He said if the interest rate is fixed at 8.95 percent, the surplus will be around Rs.91 crore but at 8.80 percent, the surplus would be around Rs.673 crore.
 
"The chairman said the market is going down and hence higher rate cannot be recommended now," Banasure said.
 
He said Rs.31,844 crore was the amount available to be distributed as interest to the EPFO subscribers.
 
Incidentally, EPFO's financial audit and investment committee earlier said there is potential to offer 8.95 percent interest rate.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Nissan sends JV termination notice to Ashok Leyland
Chennai : Japanese automobile major Nissan Motor Company has sent a notice to Ashok Leyland Ltd terminating its technology development joint venture Nissan Ashok Leyland Technologies Pvt. Ltd over non-payment of royalty, said a source.
 
The joint venture company is owned in 50:50 by the two partners.
 
Curiously, the termination notice comes soon after Ashok Leyland Ltd sent a legal notice to Nissan for using the equipment owned by another joint venture company to roll-out cars instead of light commercial vehicles (LCV).
 
"It is true that we have issued a legal notice to Nissan. As the matter is sub-judice, I cannot comment further," chief financial officer Gopal Mahadeven said here on February 12.
 
Indian commercial vehicle-maker Ashok Leyland and Nissan Motor Company had formed three joint ventures.
 
The first joint venture is to make LCV's under the name Ashok Leyland Nissan Vehicles Pvt. Ltd. in which Ashok Leyland owns 51 percent while Nissan owns the rest.
 
The two warring partners have two more joint ventures -- Nissan Ashok Leyland Powertrain Pvt. Ltd., the powertrain manufacturing company owned 51 percent by Nissan and 49 percent by Ashok Leyland; and Nissan Ashok Leyland Technologies Pvt. Ltd., the technology development company owned 50:50 by the two partners.
 
Nissan has sent its termination notice for scrapping the joint venture Nissan Ashok Leyland Technologies Pvt. Ltd.
 
According to a top source, the Japanese group decided to exit the joint venture as Ashok Leyland has not paid royalty totalling over Rs.200 crore.
 
The Japanese company has decided to stop supply of parts and other aspects to the joint venture/Ashok Leyland.
 
Ashok Leyland had turned out four vehicle models from its partnership with Nissan -- Dost, Mitr, Partner and Stile -- while for Nissan it was only Evalia.
 
While Nissan put a halt to Evalia, Ashok Leyland stopped production of Stile later as the vehicle was not doing well in the market. However, Dost has been doing well for Ashok Leyland.
 
According to the source, Nissan wanted to be friendly and settle the issues amicably but was surprised at the legal notice from Ashok Leyland relating to another joint venture.
 
Last year, Nissan Ashok Leyland Technologies went to the Board for Industrial and Financial Reconstruction (BIFR).
 
The company's net worth was eroded and the accumulated losses were around Rs.172.37 crore.
 
Senior Ashok Leyland officials were not available for comments.
 
"We are working with Ashok Leyland for a mutually agreeable solution. We have no further comments on the subject," a Nissan spokesperson told IANS in an email.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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