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Hewlett Packard, the $47 billion US major's decision to split its worldwide operations into two companies will lead to split in the India operation too.

The software business, which is being conducted by HP India Software Operations, would continue to exist as a part of HP India.

Hewlett Packard India, the existing company, would retain the computing and imaging businesses, which include computers, printers and peripherals.

The measurement business, including medical equipment, testing equipment and component and chemical analysis systems, would be shifted to a new company, which is yet to be named.

Currently, HP India has a presence under two independent business identities - Hewlett Packard India and HP India Software Operations. These give gross revenue of Rs 6.56 billion.

HP India President Ganesh Ayyar has said that HP's operations in India would reflect the changes made globally.

"The measurement business has always been a separate business for HP and the management has decided to hive it off into a separate company to give focus to this area. Worldwide, the measurement business is about $8 billion out of the total HP business. A separate company for this business would also be formed in India," Ayyar explains.

Ayyar is not very clear on the equity status of the proposed company but says that globally the new company would offload 15 per cent stake to public by the end of the calendar year.

"The entire restructuring exercise should take about 12 to 18 months. The proposed company should make its initial public offer of 15 per cent stake by the end of this calendar year," Ayyar assures.

On the shareholding of the proposed company, Ayyar has said that the existing stockholders of HP would hold stocks in the new company too.

"The details are being worked out on this front and we hope to make a decision soon. The price ratio and any other details of offer to existing stockholders would only be known then," he has said.

The proposed company is also likely to have its own CEO. "Hewlett Packard and the new company would have different CEOs. Whether that would be the case in India as well it is not very clear. "Both these CEOs would be reporting to a common chairman, Lewis E Platt, who is at present the chairman, president and CEO of HP," Ayyar explains.

HP is also bringing the Indian operations of Verifone, a company globally acquired by HP last year, under its banner.

"Verifone would be renamed HP, but would continue to operate as a separate company. The pay scale and other incentive plans would be at par with HP India, but Verifone would continue to operate separately. The name of the company would, however, be changed," said Ayyar.

- Compiled from the Indian media

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