According to HP India president Ganesh Ayyar, the local subsidiary will be aligned on the pattern of the parent company, with one part focusing on computing and imaging segments while the other targeting the testing and measurement market.

Ayyar said the need to adjust the impact of Internet on the company's business was one of the reasons for taking such a strategic step. "It will also help us to be more focused."

Ayyar, however, said the nitty-gritty of the local companies have not been worked out. It will be done within the next 12 months, he said.

He allayed fears that the restructuring will lead to reduction in work force.

The restructuring will help HP India to focus on the computing market where it is one of the market leaders, Ayyar said.

In the testing and measurement segment, HP is a market leader and will continue to be so, said HP India director(medical products group) Anjan Bose. Declining to give revenue break-up for measurement and computing markets, Ayyar said it will be similar to the company's international performance where 82 per cent of revenue comes from computing and imaging segment while measurement and testing equipment contribute 18 per cent.