1. Technology Capabilities : India as an R&D destination India Connect : USA Santa Clara, 11 th April 2005 Sandeep Kishore Vice President – Hi Tech and BFS

2. 2 / 16 2 India’s R&D : Some Facts 60% of World’s Leading Product / OEM companies source a part of their technology from India R&D / Product Engineering Services export account for 25% of the total IT Services and Software exports from India –CAGR of 36% over last 10 years –FY 05 estimate : $ 2.3 B –Expected to grow to $ 8 – 11 B by 2008 1216 patents filed from India in 2004 OF which 91% were filed by MNCs / Global Corporations operating in India –Leveraging the Innovation for the Global Market-place Perfect Ecosystem to breed Innovation –India has over 270 Universities and several World-class Engg. Colleges and Institutes –250,000 Engineering Graduates and Diplomas / per year ( Compared to 60,000 in US ) –Over 1500 R&D units - World’s largest chains of publicly funded R&D institutions (65%) –Government incentives and favorable regulatory environment in Patents, Copyright, data protection etc. India – an intelligent hub for R&D * Data Source - NASSCOM

3. 3 / 16 3 Drivers for Multi-sourcing of Innovation –Shortening of Global Market Penetration Time for new products –Decreasing market shelf life for new products –Shortening R&D Development Cycle –G 8 countries  Increasing R&D cost  Demand Supply Gap of R&D talents –Global Knowledge Source and Seamless Global Network –Innovation in Multi-Geography and Multi-Organization System thru’ Global Knowledge Collaboration –Technoglobalism R&D Innovation India is poised to become the Global Innovation Hub for the 21 st Century

4. 4 / 16 4 R&D Ecosystem @ India CSIR IICT DRDO R&D Organizations IIT IISc RECs Universities Talent Pool Chrysalis / Draper / Walden > 150 US based Start-ups have some R&D in India Venture Funds HCL Technologies Wipro Tatas Infosys IT Service Provider Flextronics Celestica Jabil Circuit Sanmina-SCI EMS Companies Tata Motor Moser Baer Hero Honda HCL Infosystems Indian Industry SCL BEL ITI GAETEC Fabrication Units Texas Instruments Microsoft Cisco Motorola Captive Units The R&D Ecosystem

5. 5 / 16 5 Leverage India : R&D prowess – some examples Automotive –Honda –Visteon –Ford –General Motors –Daimler Chrysler –India exported over $ 1 B in designed components in 2004 Aerospace –Honeywell Chemical –Cargill –DuPont Conglomerates & Consumer Goods –GE –Samsung –LG –Hyundai –Unilever –Whirlpool –Philips –Electrolux –Sony –Siemens –Kone Hardware & Semiconductor –Intel –Texas Instruments –Motorola –Cisco –IBM –ST Micro Electronics –Xilinx –NVIDIA –AMD –BELL Labs –3Com Software –Adobe –Microsoft –Oracle –Yahoo –Google –Cadence –Symantec / Veritas –BMC BioTech & Pharmaceuticals –Merck –Glaxo SmithKline –Pfizer –Astra Zeneca > 100 Fortune 500 Companies have R&D in India Chinese Companies With R&D in India Huawei, ZTE

6. 6 / 16 6 Disruptive Technologies : Some Case Studies Medical Electronics – Endoscope Controller Next Generation design and development of Endoscope with built in camera (Class II Device) Cutting Edge Development –Electronics design of the video console –Image processing software development - leverage IPs –Electronics for robotic movements –Joystick design for probe movement control Key Advantages –Time to Market / IP driven advantage –FDA certification compliant processes –SW-68 design controlled process documents and FDA &MDD compliant DHF & TCF –Ready-to-manufacture design Home Gateway Solution VOIP enabled Home gateway solution encompassing hardware, software and prototype development Scope → Production ready PCB design targeted at OEMs and ODMs → Optimization for low cost and high volume production - from Architecture and component selection onward → Fully tested, robust and conforming to the performance targets → Usage of IP’s such as SIP Stack etc. in developing comprehensive software solution Key Advantages → Time to Market – Full Solution developed on VOIP ; Ability to demonstrate the capability of silicon and systems ; volume production by OEMs / ODMs → Global Delivery Model

7. 7 / 16 7 HCL selected as the Software Development partner for the 787 program –Strategic and Multi-year agreement to cover expected life cycle of the planes Diverse leading edge technologies for various 787 avionics systems –Airborne Collision Avoidance System –Integrated Surveillance Systems –Display Systems –Crew alerting systems –Proximity Warning Systems –Ground-based Software Tools –Auxiliary Power Unit Boeing has also tied up with Indian Institute of Science, Bangalore for strategic alliance to conduct research in aerospace materials, structures and manufacturing technologies –The alliance will provide innovative ideas and help infuse the best of these technologies into Boeing Leverage India : Next Generation Planes from Boeing

8. 8 / 16 8 Huge Potential to Invest and Grow Bio Tech –Estimated to grow to $ 5 B by 2009 ( 10% of Global Industry ) from current $ 700 M –Strong Ecosystem of : 40 Research Institutes, 15000 Scientists, 200 Bio Tech Companies –Bio Pharma, Genetic Engg, Drug Delivery, Bio Informatics, Clinical Trials  World’s Largest Producer of DPT vaccines, 90% of measles vaccines –Indian Pharma Industry is the 4 th Largest in the World Telecom Industry –8 th Largest Telecom Network in the World ; Growing @ 20% –Telecom Equipment and Handset Market to grow to $ 29 B by 2008 –45 M wirelines ; 48 M wireless connections ; teledensity of 8.6% ; HUGE Potential to Grow  Wireless will lead the Telecom Boom in India  1.5 M wireless subscriber getting added every month  Expected to Grow to 300 + M subscriber by 2010

9. 9 / 16 9 R&D Industry Segments INDIA Semiconductor Devices Software Products Medical Devices and Bio Tech Full Lifecycle R&D ; from Concept to Production Automotives Aerospace Telecom Products Networking and Storage OEM / ODM / EMS Banking and Retail Technologies Computing Products, Peripherals Semiconductor Equipment Mfg.

10. 10 / 16 10 Concluding thoughts Fresh & innovative thinking Not enough confidence to change and innovate Reduced impetus for innovation Propensity to Innovate State of Economy DepressedUncertainGrowingBooming Sight on value and result may be lost India is a Growing Economy with Tremendous Potential and Propensity to Innovate

11. 11 / 16 11 Thank You Sandeep Kishore (408) 523-8347 skishore@hcltech.com