Focus or diversify?


PVR began its innings in the movie exhibition business by introducing world-class multiplexes in India and went for a ‘related’ diversification into the high-risk high-return business of film production. It decided to get out of the movie making business post the 2012 release of Hindi movie Shanghai because it doesn’t see this as a viable business opportunity for the long term. HCL Infosystems, our second example, said recently that it will phase out its manufacturing business over the next few years to improve margins and increase organisational efficiency. The company will instead focus on strengthening the services and distribution verticals. HCL Infosystems CEO and managing director Harsh Chitale has been quoted in the media saying HCL “will be in PC distribution and in after sales services but will not manufacture HCL branded products in the future”.

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