HCL Technologies said on Tuesday it has formed a partnership with Canada-based Celestica to design, make and sell electronic components in a deal that would generate $100 million in revenues in the next five years for the country's fifth largest software exporter.
Under the five-year deal, HCL would set up a design service centre in Chennai that is expected to employ about 200 people in six months, HCL Technologies President Vineet Nayar told reporters in a conference call.
"The company has formed a joint venture with Celestica to design electronic components and provide after sales support to its customers, while Celestica will manufacture and market the product," he said.
"It will be a joint venture from customers point of view," he said, clarifying no separate legal entity would be formed.
HCL would get acess to new set of customers and generate additional revenues from this venture, he said.
"We will address medical electronics, consumer electronics and aeronautical sectors initially," he said.
The two companies would also set up a joint marketing team, which is to be funded by both HCL and Celestica, Nayar said, but refused to divulge the figures.
"It will help Celestica in saving costs and offer more value to customers," he said.
The venture would provide concept-to-manufacturing solutions and a fully integrated product lifecycle solution to Original Equipment Manufactures customers, including product concept, design, engineering and manufacturing among others, Nayar added.
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