Shiv Nadar, the founder of HCL Technologies, is recognized as one of the pioneers who transformed India's IT industry. Through his foresight, determination, and the rare ability to visualize and articulate futuristic ideas, he turned HCL into one of the world’s leading IT companies. At a time when most Indians hadn't even heard of computers,
Shiv Nadar envisioned their potential and succeeded in creating India's first and the world's second personal computer (PC). This ability turned an ordinary man into a global icon. Today, he ranks among India’s wealthiest individuals, just behind Gautam Adani. In this blog, we’ll dive deep into his life journey, the rise of HCL Computers, and the wisdom that drove his success.
Early Life and Education
Shiv Nadar was born on July 15, 1945, in Moolaipozhi village of the then Madras Presidency (now Tamil Nadu), two years before India gained independence. He had a modest upbringing and completed his schooling before enrolling in PSG College of Technology in Coimbatore to study Electrical and Electronics Engineering.
First Steps in The Initial Career Steps
Career and the Spark of Innovation
In 1967, after graduating as an engineer, he began working with Cooper Engineering Ltd. in Pune. Later, he joined DCM in Delhi, a prestigious company at the time. One day, he noticed his boss working on a computer, which sparked his interest. Back then, computers were a mystery, and many feared they would replace human jobs.
But Shiv Nadar saw opportunity where others saw threat. He began studying computers, analyzing their potential, and visualizing their impact. Gradually, he started sharing these ideas with colleagues in a compelling and persuasive way. His vision convinced six of his colleagues to resign from their jobs and join him in pursuing something revolutionary – building computers in India. This bold move made headlines, and thus began the story of HCL.
Building India's First Computer
In 1976, Shiv Nadar founded "Hindustan Computers Limited (HCL)". He needed money, a team of skilled computer engineers, buyers, and infrastructure. In 1977, when banks refused to finance him due to prevalent myths about computers, he approached the Uttar Pradesh government. Impressed by his futuristic vision, the government invested ₹20 lakhs in exchange for 26% equity in the company.
However, other investors mocked him for not being an IITian. Nadar, always resourceful, introduced his IIT Kharagpur graduate co-founder Arjun Malhotra to investors and even pitched the idea of a computer lab to the IIT Kharagpur director. This pitch earned them an order for 100 computers, helping them raise the capital they needed.
A Keen Observer and Visual Thinker
Shiv Nadar was always aware of market trends and sought out the right opportunities. Around this time, IBM had exited India due to the "Swadeshi" movement, leaving behind skilled but unemployed computer engineers. Shiv Nadar offered them jobs at HCL, leveraging their expertise. With their help, in 1988, HCL successfully built India’s first and the world’s second personal computer – a landmark achievement.
Tackling Myths and Changing Public Perception
Although they had started selling computers, they initially struggled with large-scale orders. Shiv Nadar discovered that widespread misconceptions about computers—like being too complex or expensive—were deterring customers.
To counter this, he trained even the office peon to operate a computer and published it in newspapers to prove how easy it was. This clever marketing move, along with proper training for his sales team, helped build trust and skyrocketed their sales. HCL sold 10,000 computers within two years, compared to just 100 before their entry.
Global Expansion and a Hard Lesson in the US Market
In 1980, Shiv Nadar expanded to Singapore by launching "Far East Computers". Facing skepticism because of India’s underdeveloped image, he convinced local Tamil traders by offering affordable prices. Within the first year, they earned ₹10 lakhs from Singapore alone.
Emboldened, he targeted the U.S. market and collaborated with McKinsey & Co. to build UNIX-based computers. He even set up a manufacturing plant in Silicon Valley with a ₹5 crore loan from ICICI Bank.
Unfortunately, they made a critical technical mistake—building computers that ran on 50 Hz instead of the required 60 Hz power supply in the U.S. As a result, none of the machines sold, leading to massive losses and sending Nadar into a short period of depression.
The Pivot to Software Development
After two days of deep reflection, Shiv Nadar reemerged with a new idea. He observed that many companies were developing software in-house, diverting attention from their core business.
He proposed that HCL would build software for these companies. His partners agreed, and they started approaching firms like Cisco, who placed an order. This success attracted other clients, helping HCL transition from a hardware company to a software powerhouse. Eventually, they repaid the ICICI loan and turned profitable again.
HCL’s Rise as an Industry Leader
With rising global competition in IT, HCL’s early entry ensured they stayed ahead. In fact, HCL has employed more American workers (17,000) than the number of Indians hired by Microsoft.
Philanthropy and the Shiv Nadar Foundation
In 1994, Shiv Nadar founded the Shiv Nadar Foundation. In 1996, he established an engineering college in Chennai named after his father, S. S. Nadar. He has since supported multiple educational initiatives to uplift students from underserved communities.
Telecom Opportunity and Nokia's India Success
Always forward-thinking, Nadar explored the telecom sector and applied for a license with Singapore’s Singtel. When Singtel withdrew, the Indian government denied HCL a telecom license. He pivoted again—this time partnering with Nokia, which was then unknown in India. Convincing Nokia of HCL’s established market presence, the partnership was forged. Between 2000 and 2005, HCL quietly helped Nokia earn ₹8,000 crores in India, holding 42% of the market.
Adapting to Market Changes and Surviving Recession
By 2006, Chinese companies were undercutting HCL in hardware pricing. In response, Shiv Nadar shifted focus from low-profit customers to the 20% who generated 80% of revenue. This strategic move helped HCL survive the 2008 recession, recording a 34% growth in 2009.
Leadership Transition and Future of HCL
In July 2020, Shiv Nadar stepped down as HCL’s Chairperson and handed over the reins to his daughter, Roshni Nadar Malhotra—India’s first woman to lead a major IT firm. In July 2021, he resigned as Managing Director, and CEO C. Vijayakumar took over.
Remarkable Achievements
IT Man of the Year (1995) – Awarded by Dataquest.
Padma Bhushan (2008) – Honored by the Government of India for his contributions to IT.
Today, HCL is a global IT giant, and according to Forbes, Shiv Nadar’s net worth exceeds $35 billion.
Conclusion
Shiv Nadar’s story is a masterclass in vision, resilience, and problem-solving. From rural Tamil Nadu to global boardrooms, he not only built a tech empire but also transformed countless lives through education and innovation.
.jpg)
0 Comments