Business Daily from THE HINDU group of publications
Thursday, Jul 20, 2006
Business Daily from THE HINDU group of publications Thursday, Jul 20, 2006 |
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Info-Tech
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Mergers & Acquisitions
Our Bureau
Bangalore July 19 After having acquired half-a-dozen small IT firms in the past six months, Wipro Ltd is now eyeing bigger buyouts. The Chairman, Mr Azim Premji, said that Wipro would go in for bigger acquisitions going forward as it seeks to build a stronger global footprint. "The size of the acquisitions will be a little bigger than we have been doing in the past." But that does not necessarily mean they will be substantially bigger, he told a post-earnings news conference.
Earlier acquisitions
Wipro had acquired firms such as NewLogic, Quantech, Saraware Oy and Enabler in the recent past. "While these acquisitions definitely have long-term strategic value, we are equally confident that we will derive significant value from these in the medium term as well," Mr Premji said. "Overall, our experience in terms of early wins and business integration so far gives us confidence that we are progressing well with the very sound strategy in acquisitions."
Growth rate
The CFO, Mr Suresh Senapaty, said that the inorganic growth would only supplement organic growth and not replace it. "We will grow ahead of the industry rates and the acquisitions will sit on top of it." Mr Senapaty also said that the acquisitions contributed about two per cent to Wipro's overall revenues in the first quarter. "We would expect greater percentage of revenue from acquisitions." To a query on the anticipated slowdown in the global market, Mr Premji said that he does not see any sense of uncertainty building up. While outsourcing is getting mainstream, the marginal movement in GDP growth rates in the US and Europe would not have any impact, he said.
Goa operations
Wipro is in the final stages of buying land for setting up operations in Goa. Without divulging details, Mr Premji said that the company expects to start its BPO operations in Goa in the first phase. Apart from expanding its existing facilities at Chennai, Hyderabad, Pune, Kolkata, Gurgaon, and Kochi, the company is planning operations in Visakhapatnam, Chandigarh and Bhubaneswar. Meanwhile, the company has received SEZ status for two of its campuses at Electronics City and Sarjapur Road in Bangalore.
More Stories on : Mergers & Acquisitions | Software | Wipro Ltd | Outlook
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