A Presentation

on
“Indian company going global”

WIPRO Ltd

From Vision to Action…

Submitted to:
Prof.B.K.Kumar

Submitted by: (Gr.No-13)

Sapan ku.Prusti (039)
Rajesh Pradhan (103)
Subhra Ranjan Ray (052)
Meenaketan padhi ( 086)
Rahul Shrivastava (031)

TABLE OF CONTENTS
Topic Page No:

Company Overview 2
Global IT Industry Overview 5
Wipro’s SBU’s 7
Strategic Alliances 8
European Market Perspective 10
SWOT Analysis 12
Comparative Analysis 14
Wipro’s Strategy to become Global 15
Positioning for Global Strategy 22
Financial Analysis 26
Financial Statistics 28
Road Map of IT 32
BCG Matrix for WIPRO SBU’s 33
Future Road Map of WIPRO 36
Suggestions and Recommendations 37
Bibliography 38

Wipro as a company going global 2

Company overview: Wipro Limited was incorporated in 1945 as Western India
Vegetable Products Limited under the Indian Companies Act, VII of 1913, which is now
superseded by the Companies Act, 1956. It is deemed to be registered under the
Companies Act, 1956, or the Companies Act. Wipro is a global IT services company. It
has been acknowledged as an offshore provider of technology services by Gartner,
Forrester and other research and advisory firms. Wipro provides a comprehensive range
of IT services, software solutions, IT consulting, business process outsourcing, or BPO,
services and research and development services in the areas of hardware and software
design to companies worldwide. The Company combines business knowledge and
industry expertise of its domain specialists and the technical knowledge and
implementation skills of its delivery team in the development centers located in India and
around the world, to develop and integrate solutions which enables its clients to leverage
IT for achieving their business objectives. Wipro has three principal business segments:
Global IT Services and Products, India and AsiaPac IT Services and Products and
Consumer Care and Lighting. Global IT Services and Products segment provides IT
services to customers in the Americas, Europe and Japan. The range of its services
includes IT consulting, custom application design, development, re-engineering and
maintenance, systems integration, package implementation, technology infrastructure
outsourcing, BPO services and research and development services in the areas of
hardware and software design. The Company's service offerings in BPO services include
customer interaction services, finance and accounting services and process improvement
services for repetitive processes. Wipro's sales teams are organized in three ways: by the
vertical market segment of the client's business; by the geographic region in which the
client is located; and by the specific practice specialization or skill set that the client
requires. The market for IT services is highly competitive and rapidly changing. India
and AsiaPac IT Services and Products segment focuses primarily on meeting the IT
products and services requirements of companies in India, Asia-Pacific and the Middle
East region. Its suite of services and products consists of the following: Technology
Products and Technology integration and management services and outsourcing services.

Wipro as a company going global 3

Wipro's offerings include: Availability Services, System Integration, Infrastructure
Management and Total Outsourcing and Technology Support Services. Consumer care
and lighting business segment focuses on niche profitable market segments and has
historically generated cash to support the growth of its other business segments. Products
in this segment includes: Soaps and toiletries, Lighting and Hydrogenated cooking oils.
The Company sells and markets its consumer care products primarily through
distribution network in India, which has access to 2 million retail outlets throughout the
country. The primary raw materials for many of its soap and hydrogenated oil products
are agricultural commodities, such as vegetable oils. Wipro relies on a combination of
patent, copyright, trademark and design laws, trade secrets, confidentiality procedures
and contractual provisions to protect its intellectual property. Regulation of its business
by the Indian Government affects Company's business in several ways. As of March 31,
2006, Wipro had over 53,700 employees. Wipro Technologies is the global IT services
business of Wipro Limited, a diversified company with the principal line of business of
IT and consumer products. Wipro Limited, which had $1.2 billion in revenue for FY04,
also has other interests in fluid power, lighting, medical equipment products, and
financial services. Wipro Technologies makes up around 67% of the company’s total
revenue and is Wipro’s fastest-growing business. Wipro Technologies is a part of Wipro
Limited (NYSE:WIT) and is a leading global provider of high-end IT solutions. The IT
solutions provided include application development services to corporate enterprises and
product engineering services to technology companies. Wipro Technologies achieved
$617 million in revenue for the fiscal year ending March 31, 2003, and has over 18,500
employees. With over 10000 consultants Wipro integrates people processes and
technologies to deliver innovative solutions that enable implementation of product
development strategies efficiently and cost-effectively. Wipro Technologies has emerged
as the second-largest software exporter from India and has a high-powered client base,
including GM, Lehman Brothers, Sony, NYSE, Weyerhaeuser, Thames Water, Lucent
Technologies, Nike, and Nortel. Wipro Technologies provides end-to-end IT deployment
solutions to suit the specific business needs of large enterprises and small and medium-

Wipro as a company going global 4

sized enterprises in the United States, Western Europe, and Japan. It offers systems
integration solutions, network integration solutions, application development and
maintenance solutions, packaged applications (such as enterprise resource planning
[ERP], customer relationship management [CRM], and supply chain management
[SCM]) solutions, ecommerce solutions, IS outsourcing services, and business process
outsourcing (BPO) services. Wipro’s unique value proposition is further delivered
through its pioneering Offshore Outsourcing Model and stringent quality processes of
SEI and Six Sigma. Wipro is also the first IT services company in the world to achieve
the highest level of quality certification, the SEI-CMM Level 5. When India opened
its economy in 1990, Premji acknowledged that Wipro could not
compete with PC imports. But he had his R&D lab, filled with some of
India's best talent. Wipro’s engineers designed semiconductors for
Texas Instruments, phones for Nokia, and switches Azim Premji, current
chairmain of Wipro, with a fortune estimated at $6 billion, is by far the
nation's wealthiest individual. In 1946, his father founded the Western
India Vegetable Products Company to manufacture and distribute
cooking oils. The elder Premji died suddenly in 1966, thus Premji had
to cut short his studies at Stanford to take over the family business.
(He finished his electrical engineering degree in 1999). He diversified
into personal-care products and then into lightbulbs. In the early
1980s, Wipro started up an R&D lab. Within a few years, Wipro was the
leading manufacturer of personal computers, printers, and scanners in
India. and routers for Nortel. Then they started tinkering with software.
Today, it is India's second-biggest exporter of software services.
Since 1997, Wipro's revenue has grown by an average of 26% a year
while profits have grown by 69%. At present, Wipro is the first PCMM
Level 5 and SEI CMMi Level 5 certified IT Services Company globally. It
is providing comprehensive IT solutions and services (including
Systems Integration, IS Outsourcing, Package Implementation,

Wipro as a company going global 5

software Application Development and Maintenance) and Research &
Development Services (hardware and software design, development
and implementation) to corporations globally.They are cheaper -- on
average about 40% cheaper -- than comparable American companies.
The vision for Wipro's Global Command Center is to offer services based on world-class
infrastructure, industry expert skills, proven process-oriented service operations that are
backed by principals to ensure the world's best way of delivering IT infrastructure
management solution."

• Vision : To offer services based on world-class infrastructure, industry expert

skills, proven process-oriented service operations that are backed by principals to
ensure the world's best way of delivering IT infrastructure management solution.“
• Mission: "To serve customers with integrity through innovative, value for money
solutions, by applying thought day after day"
• Values: Human values , integrity, Innovation drives us

Global IT industry overview: Information Communication Technology (ICT), the

fastest growing industry of the present era, has not only captured the imagination of the
people but also contributed to foster the pace of globalization and bringing together
humanity as has never been before by breaking geographical, territorial and man made
barriers. In the process, it has generated economic opportunities, social-closeness and
contributed to the overall growth process of the whole world. Many countries have
plunged into the arena to reap benefits as per their advantages. Even Asian countries like
China, Taiwan and India have created a niche for themselves, the first two in the area of
hardware and the latter in the area of software. Within a short span, ICT related exports
has become the largest export item of India surpassing a large number of traditional
products and services including dynamic ones. Information technology (IT) refers to the
collection of products and services that turn data into useful, meaningful, accessible
information. The information technology industry has several major facets: computer

Wipro as a company going global 6

hardware, software and services. Often, telecommunications hardware, software and
services are also included in the definition. Given the convergence of this technology,
including the Internet, hand held devices, intelligent machines and other equipment, clear
distinctions between “information technology” and “telecommunications” are
exceedingly difficult. The U.S. is the world leader in information and communications
technology (ICT) products and services, representing almost 40 percent of global
spending. U.S. spending on ICT has increased almost 21 percent since 2000, to almost
$1.13 trillion in 2005. Between 2000 and 2005, ICT in the U.S. has achieved a compound
annual growth rate of 4 percent, compared to 6.3 percent for all global economies. This
comparison is somewhat misleading, however, given that many countries began the
millennium with a very small installed base of information technology. To put U.S. ICT
spending into context, member nations of the G-8 experienced CAGR of 4.5 percent for
the same years. At $3,800, the U.S. is also one of the world’s largest per capita ICT
spending nations. The business community has responded the Information Technology
Industry is the fastest growing segment of the Indian economy. The Information
Technology Sector has grown in size from Rs. 5,450 crores in 1994-95 to about Rs.
64,200 crores in 2001-02 contributing 0.59% and 2.87% to G.D.P. growth respectively in
the corresponding periods. The composition of Hardware and Software exports is
estimated as follows:
Description 1994-95 Rs. 5450 crore to 2001-02 Rs. 64200 crore
Software and Service Exports 28.3%and 57.4% respectively
Domestic Software and Services 17.9% 17.3%
Hardware peripherals and networking 48.4% 22.3%
Training 5.5% 2.9%
The country wise Indian Software Exports in 2000-01 was as follows:
Country Rs. in crores Percentage
USA 17336 61.15
UK 3355 11.84
Japan 1021 3.60

Wipro as a company going global 7

Germany 900 3.20
Singapore 540 1.90
Canada 425 1.50
Netherlands 360 1.27
Switzerland 340 1.20
The NASSCOM estimates the global market and the opportunity for Indian Exports to a
level of US $700 billion and India's exports form about 5% of the global market by 2005.
The NASSCOM review paper also indicates that the Internet subscribers base will grow
from 5, 11,376 persons in 2001 to 56, 33,322 persons in 2006.

WIPRO’s Strategic Business Unit’s (SBU’s):

Wipro Infrastructure Engineering - Wipro Infrastructure Engineering offers world-

class hydraulic cylinders and truck hydraulic components and represents the Kayaba,
Kawasaki, Sun Hydraulics and Teijin Seiki range of hydraulic products in India. With
state-of-the-art manufacturing facilities and extensive product development and testing
facilities, Wipro Infrastructure Engineering has emerged leader in the hydraulic cylinders
and truck tipping systems market in India.

Wipro Infotech India - Wipro Infotech is the IT services, solutions and products
division of Wipro. It operates in the geographies of Asia-Pacific and the Middle-East.
Wipro Infotech is one of the leading manufacturers of computer hardware and a provider
of systems integration services in India. The company manufactures a popular line of
desktops, notebook PCs, data servers and offers a range of technology services. Wipro
infotech, the company’s middle east and Asia Pacific IT services and products business,
recorded revenues of Rs 2.70 billion, an increase of 68 per cent over the same period last
year. Its PBIT grew by 48 per cent to Rs 135 million. Wipro infotech accounted for 15
per cent of revenue and three per cent of PBIT for the quarter ending June 30, 2004.

Wipro as a company going global 8

Wipro Lighting –Vision: innovative range of cleanroom luminaries, clean & pure Wipro
Lighting manufactures and markets the Wipro brand of luminaires, lamps and
accessories. Wipro Lighting caters to both institutional and retail consumers, offering
lighting solutions across various application areas such as commercial lighting for
modern work spaces, manufacturing and pharmaceutical companies, designer petrol
pumps and outdoor architecture.

Wipro consumer care Products - At WIPRO, the consumer care and lighting division,
which precedes the mainstay IT services, made news recently with its aggressive moves.
It gobbled up Hindustan Lever's dormant brand Glucovita in the glucose drinks segment
and then upstaged Marico Industries to take up the distribution of Chandrika soap. And
there are no pauses, as Vineet Agrawal, President of Wipro's Consumer Care and
Lighting division, is betting on further acquisitions to help the business leapfrog to new
highs.

Wipro Technologies: Wipro Technologies is the No.1 provider of integrated business,

technology and process solutions on a global delivery platform.
Wipro Technologies is a global services provider delivering technology-driven business
solutions that meet the strategic objectives of our clients. Wipro has 40+ ‘Centers of
Excellence’ that create solutions around specific needs of industries. Wipro delivers
unmatched business value to customers through a combination of process excellence,
quality frameworks and service delivery innovation. Wipro is the World's first CMMi
Level 5 certified software services company and the first outside USA to receive the
IEEE Software Process Award

Strategic alliances: In its sixth acquisition in seven months, Wipro on Thursday said
it has acquired the Finland-based Saraware Oy in an all cash deal worth $32 million.
Just a week ago, Wipro took over Enabler, an EU-based retail service provider for $53
million.

Wipro as a company going global 9

Saraware, a 21-year-old company, is a leading provider of design and engineering
services to telecom companies. This acquisition adds expert domain competencies in the
areas of radio networks and secure mobile platforms. Saraware has nearly 200 specialists
in these domains based out of Finland. Close to 50% of global market share in wireless
infrastructure domain is dominated by major players in the Nordic belt. Sudip Nandy,
Chief strategy officer, Wipro Technologies said "Over the past few months through
acquisitions in Europe we have added local work force in Portugal , Austria, France, and
Germany. Saraware gives us a local work-force in the Nordic region through a presence
in Finland. This is in line with our drive to transform ourselves into a truly global
company with global workforce. Wipro’s R&D arm, the product and engineering
solutions (PES) division, is more than twice as large as that of its closest competitor, Tata
Consultancy Services (TCS), India’s largest software exporter. It generates 35% of its
turnover and 60% comes from software services. Wipro sees that changing by 2010,
when both would be in equal proportion.

Wipro’s expertise in the domain of Consulting:

• Business consulting- Wipro provides quality business performance and helps its clients
to leverage the strengths of IT to get the most from their business processes.
• Process consulting- Wipro provides process improvements and implementation of
packaged applications to their clients through this.
• Quality consulting- By deploying six sigma methodology and programs and process
Improvement tools, Wipro helps in setting up quality frame works that deliver
measurable value for the businesses concerned.
• Technology consulting- Wipro covers from package and technology assessment to
large-scale systems integration, and envisions, architects and builds robust
Solutions tailor-made for organizations.

Wipro as a company going global 10

European market perspective: (for Wipro)
(1) Fragmented market:
• Distinct streams of customer behavior across Europe
• High cultural and linguistic diversity

(2) Regulated market:

• European Union and country-level regulations
• Global Delivery Model adoption is lower
(3) Demographic profile:
• Ageing work force
• Decline in computer science graduates in Western Europe
• High adoption of telecom technology
(4) Customer uniqueness:
• More detailed and demanding on service delivery
• IT groups focusing more on business value and Return on Investment

IT Market statistics:

Projected IT Services Spending (Bn Euros)

140
Project Based
120
Services
100 69.1
62.3 65.6
80 56.3 59.2 Infrastructure
Related Outsourcing
60 26.3
25.9
40 24.3 24.9 25.4 BPO
14.7 16.6
10.9 11.9 13.2
20
17.1 18.5 Wipro as
20.2 a company
22.3 24.8
going global 11
0 Application
2006 2007 2008 2009 2010 Outsourcing
 • Improving IT efficiency continues to be a priority
• Infrastructure consolidation continues to be a focus area
• Preference towards ERP packages vis-à-vis custom built applications
• Increasing interest in Integrated BPO+IT solutions
• Regulatory changes adding to IT budgets
• Outsourcing contracts getting shorter

Wipro gears up for mega global deals: Tech major Wipro seems to have enhanced
significantly its delivery capabilities through its series of acquisitions, building multiple
domain expertise and readying a bouquet of service offerings. The company says it is
now ready to venture into deep waters to contest for mega deals, in the range of $250 to
$500 million, with top global players like IBM, Accenture and EDS. Suresh Vasvani,
president, Wipro Infotech, told The Times of India, ‘‘All the investments we have done
so far towards enhancing our service lines have started yielding results. This has given us
immense strategic edge. As a result, we currently have a pipeline of several $100 million
deals and many mega deals of international size. We started experiencing this trend in the
domestic market a couple of quarters ago by winning work orders from HDFC and Dena
Bank worth $80 mn and $70 mn respectively. Most of these mega deals are going to be in
the areas of offshoring, infrastructure management and business process outsourcing.”
Wipro’s integrated services approach seems to have worked well for it. It has brought all
its services; consulting , infrastructure management, software applications, systems
integration, data centre, BPO services and PC business under a single package.
"Customers are looking at companies that can provide integrated services. total
outsourcing proposition strategy has been effective in the last six quarters,". Wipro has

Wipro as a company going global 12

strengthened its consulting business that has 250 vertical-specific consultants who
evaluate clients’ businesses, and suggest strategies for profitability and cost reduction.

SWOT Analysis of Wipro in the current scenario:

Strengths Weaknesses

Large Employee Base: (42000 as on 2005-06 with
low attrition rate)
Large number of Bluechip Clients like Nortel,
Compaq and Seagate
Operating profit margins at 32.3% lower than its
peers.
High reliance of US and European markets.
Lack of focus on Consumer durables and
Engineering products.
Small size of Balance sheet to make a deal and
acquire new profitable companies as compared to
TCS and Infosys.

Global partner with GM, Nike, JP Morgan, Franklin

Templeton, ABN Amro, GM, Boeing and GE, and
300 others

Global delivery model: Market leader in Offshore,

consulting and business process outsourcing
business.

Global Diversified company with a strong R&D

division twice as large as TCS and Infosys.
Opportunities Threats

IT Sector is booming Increase in English speaking people in china.

Innovations of latest Technologies Emerging Small IT companies

Good scope for expanding business Unrelated diversification of other multinational

Wipro as a company going global 13

worldwide(liberalization, Globalization, companies such as TATA Elxi, L&T
Privatization) Infotech,TITAN

Number of SEZ and STP’s are increasing.

While strengths and weaknesses of the Indian software sector have been an outcome
of the past decisions and initiatives, what lies ahead is well captured in the
opportunities and threats. While India’s share in the global technology marketplace
continues to remain miniscule (at 1.8%), this presents an opportunity for Indian
software companies to increase their penetration into newer markets and newer
domains. Further, as more global companies are looking towards outsourcing their
tasks to Indian software companies with a view of becoming more cost competitive,
the imperative for the former (Indian software companies) lies in moving rapidly up
the software value chain, into high-end domains like telecom and banking services.
In this initiative of moving up the value chain, Indian companies are then likely to
benefit from the scale advantages of the selling and marketing expenditure that
have been made in the past. Talking about probable threats to the fortunes of these
Indian tech companies, the most serious being the ‘successful’ replication of the
Indian offshoring model by the global tech biggies like EDS, IBM and Accenture.
While, at present, most of the managements of Indian software companies are of the
belief that it would be rather difficult for these global giants to completely replicate
the Indian model owing to the changes that they would have to make in their
revenue and cost structures, as and when these MNCs are successful in the
replication process, it would pose tough times for the Indian companies. Finally,
Indian software companies, in retaliation to increasing pressure due to global
economic slowdown, have reengineered their business models and widened their
service base through moving up the software value chain. Not only have these
changes helped these companies in improving their financial performance, even the
stock markets have rewarded them as seen by the rally that these stocks have been

Wipro as a company going global 14

witnessing since their April 2003 lows. However, there have been several bouts of
volatility in between this rally and the rapid rise witnessed in the month of
November raises some serious questions regarding the sustainability of this rally.

Comparative analysis:

It is clear that valuations (based on our FY04 earnings estimates) for most of the Indian
software majors now look stretched. And this is a result of the ‘irrational exuberance’
displayed by market players on stocks of these companies time and again. The main
concern lies in the fact that nothing so ’revolutionary’ seems to be happening with the
software companies that vouch for their prices rising so rapidly. While the overall
environment certainly has shown signs of improvement, investors need to practice utmost
caution from rallies of these kinds as they take along with them even those companies
that have destroyed capital in the past. Temptations are definitely very hard to suppress
but we believe, fallacies resulting from such temptations in the past must have made
investors more wise and introspective in their investment decisions.

Wipro as a company going global 15

 WIPRO’S STRATEGIES TO BECOME GLOBAL

Past strategies: Growth has four faces: organic; acquisitions; diversifications and joint
ventures. Premji's growth strategy over the past years shows a marked change from
earlier patterns. Between 1966-2000, Wipro grew through diversification, partnerships
and organically, through innovations it pioneered. Today, growth is also through
acquisitions and borrowed ideas, and there are fewer partnerships.

Interestingly, Premji's entry into the BPO (business process outsourcing) was remarkably
late in coming, and seems to be a somewhat knee-jerk reaction to slowing growth rates in
his core businesses. In July 2002 Wipro acquired Spectramind in a Rs4320mn deal. The
takeover caused a few rumblings amongst analysts who felt that Wipro overpaid for
India's largest non-captive call-center (GE's operations in India are estimated to be larger)
but Spectramind is already a growth driver, contributing about 4% to Wipro's total
revenues.

Moving up the value curve is another growth strategy. It is no secret that Premji would
like Wipro to join IBM and Accenture in the sophisticated and lucrative tech consulting
business, helping customers design their IT systems, and not labor in the lower level
space of offshore coding. Moving towards this goal, he bought NerveWire Inc, a
financial services consultancy located in Newton, Massachusetts, for Rs912mn.

Wipro as a company going global 16

The next shot in the arm was the November 2002 acquisition of American Management
Systems Inc, a Boston based 100 person energy practice, for Rs1152mn. Today research
led consulting represents 7% of Wipro's revenues, up from zero two years ago. Enroute
he has made some impressive gains: in April 2002, Wipro won a contract to provide tech
services to the Scandinavian TeliaSonera, beating world leaders like Oracle Corp on their
own turf.

Recent strategies: IT Services and Products segment accounted for 69% of the
Company's revenue during the fiscal year ended March 31, 2006 (fiscal 2006). Wipro
provides its clients customized IT solutions in the areas of enterprise IT services,
technology infrastructure support services, and research and development services. The
Company provides a range of enterprise solutions primarily to Fortune 1000 and Global
500 companies. Wipro addresses the banking and financial services segment, the
manufacturing sector, and the retail, energy and utilities industries through its range of
service offerings. The Company's enterprise solutions division accounted for 63% of its
IT Services and Products revenues in fiscal 2006.

Wipro Technologies is expanding its portfolio of IT services by offering high value

services such as IT consulting and systems integration, bringing it into direct competition
with global IT consulting giants like Accenture.

Wipro's strategy revolves mainly around three points:

Service line expansion - Wipro will build a full port- folio of technology services. The
company has already added a number of new services such as package implementation,
infrastructure outsourcing (including remote network management), business process
outsourcing and so on.

Quality leadership - Wipro has been well-known for embracing cutting-edge quality
standards such as six sigma. It has also begun six sigma consulting in an effort to become
a global six sigma leader.

Wipro as a company going global 17

Investing in human capital - Wipro Technologies is investing a lot in training, not only
on the technical side but also on teaching its engineers how to be consultants. The
company's employees, who several years ago were basically "code cutters", have
demonstrated the ability to take on large, complex projects and run them out of India.
Now, they must be able to develop a peer-like relationship with customers, persuading
customers instead of just accepting direction and doing a good job of execution.

The Company develops strategies and implements solutions for its clients to manage
multiple sources of data for use in their decision-making processes. Wipro uses its
expertise in package software to architect, implement and maintain client-specific
solutions. The Company also provides consulting services. Wipro provides offshore
testing services. The Company's service portfolio in testing covers the entire gamut of
user needs from product concept to deployment, across the stages of the
product/application life cycle.

Effective as of July 1, 2005, the Company reorganized the Global IT Services and
Products segment into two operating segments: IT Services and Products, and BPO
Services.

In December 2005, Wipro acquired mPower Software Service Inc. and its subsidiaries.
Pursuant to the terms of this acquisition, the Company also acquired MPact India, a
joint venture between MasterCard International and mPower Software Services Inc. In
December 2005, Wipro acquired BVPENTE Beteiligungsverwaltung GmbH and its
subsidiaries (NewLogic Technologies AG), a European system-on-chip design company.
In April 2006, the Company acquired cMango Inc., a provider of business service
management (BSM) solutions. In May 2006, Wipro acquired, subject to completion of
certain closing conditions, Enabler, a Europe-based retail solutions provider. In the same
financial year, Wipro Technologies announced yet another acquisition — Finland-based
Saraware Oy, a wireless network infrastructure provider. The € 25 million
(approximately Rs 147.5 crore) deal included upfront cash payment and debt takeover. In

Wipro as a company going global 18

addition, there are earn-outs on achieving targeted financial conditions over an 18-month
period. This is Wipro's third acquisition this financial year. The company has spent over
Rs 400 crore on the acquisitions and added around 1,600 employees In May 2006, the
Consumer Care and Lighting segment acquired North-West Switches business from
North-West Switchgear Ltd, an Indian company engaged in the business of switches
and sockets.

Wipro competes with Accenture, EDS, IBM Global Services, Cognizant, Infosys, Satyam
and Tata Consultancy Services.

Wipro GE Medical Systems Private Limited is a joint venture with General Electric.
General Electric holds 51% of the equity in the joint venture and Wipro holds 49%. The
joint venture provides customers in South Asian markets after-sales services for all GE
Medical Systems products sold to them. Products offered in this market consist of GE
Medical Systems products manufactured worldwide and portable ultrasound equipment
manufactured in India by this joint venture for the global markets.The Company
competes with Hindustan Lever, General Electric, Philips, Hitachi Ltd., Hyundai Motor
Company, UT Limited (India), Danfoss Group, Komatsu Ltd. and Siemens.

Strategy for Middle East: Middle East forms a critical component of our global
strategy,' says Wipro. Being a rapidly growing IT services market, Middle East forms a
critical component of our global strategy,' said Suresh Vaswani, President, Wipro during
his visit to the region. 'Wipro is extremely committed to building a strong customer base
in the Middle East and will continue to provide value to our customers through our
global experience, understanding of various technology domains and bringing
customized solutions to our customers in the region.' Wipro Limited successfully
implemented Oracle 'database migration' and 'forms upgrade' using Oracle product tools
for the core exchange application at Al Ansari Exchange, UAE. Al Ansari Exchange had
selected Wipro for this critical project to facilitate user friendliness of the application and
offer scalability to support the business growth of the Exchange. Wipro Limited

Wipro as a company going global 19

(NYSE:WIT), the Global IT Services Company, has further consolidated leadership
position and has extended its commitment in the region by implementing two projects in
Qatar. Wipro announced the successful completion of two projects in Qatar. The
company has successfully completed the Engineering Consultancy and IP Telephony
testing project for Qatar Petroleum for the proposed QP Complex and also implemented
an Enterprise and Desktop management suite for College of North Atlantic-Qatar
campus.
"Wipro is delighted to have completed these leading edge projects across the region.
Successful projects like these go a long way in reiterating our commitment for delivering
high levels of customer satisfaction. We look forward to adding value to our customers'
technology initiatives through our expertise in global delivery and knowledge of
technology domain. Wipro had also been selected by Qatar Petroleum (QP) to provide
Technology Consulting Services for their prestigious Ras Abu Aboud Development
Project as a consequence of QP's objective to explore the use of convergence for the new
QP complex. This 11-month project involved Wipro consultants working on designing,
architecting and testing the solution in Qatar Petroleum. The IT major implemented the
project on time and within schedule. Furthermore, the company also implemented HP
Openview Enterprise Management suite for College of North Atlantic in Doha, Qatar.
The College as a part of a larger consortium had selected Wipro. The IT major
implemented HP Open View Service Desk and Altiris Client Management Suite - the
desktop management tool from Altiris. These tools will provide proactive management of
the IT Services in College of North Atlantic thereby enabling higher level of services to
the students and faculty of the college. Wipro started its operations in Middle East region
in June 2001. In the subsequent years it expanded its operations in the region to Kingdom
of Saudi Arabia, Oman, Qatar, Bahrain and Kuwait. Today it has built a strong customer
base in Middle East. Some of its customers in the region include-Doha Bank, Gulf
Insurance Company, Sharjah Electricity and Water Authority, Dubai Metal and
Commodity Center, SPC and Dubai Municipality among others. Wipro delivers high end
IT services and consulting services to its client in the Middle East region through its two

Wipro as a company going global 20

regional offices. One in Dubai Internet City handling operations in UAE, Qatar, Oman
and Kuwait, and the second at Al Khobar catering to Saudi Arabia and Bahrain.

Strategy for west Asia: WIPRO sees a tremendous synergy in the Indo-Gulf markets
and it aims to further strengthen this relationship in the years to come, according to Mr
Rajat Mathur, Vice-President, International Operations. Speaking at the recently-
concluded India-Gulf Partnership Summit in Dubai, Mr Mathur said that West Asia and
the Gulf were moving into higher value services as IT was increasingly relied upon to
drive business momentum. He said this region formed a critical part of Wipro's global
business strategy. "Wipro as a company is extremely committed to building a strong
customer base in the UAE and across the region. We are confident that our efforts in
bringing best practices will spur healthy growth of ICT industry in UAE,". In 2004-05
alone, Wipro had year-on-year growth of 85 per cent in APAC/Middle East region. In Q2,
2005-06, the company had a growth of 28 per cent in the Asia Pacific/Middle East
region. In Q2 ending September 2005-06, Arab National Bank, Saudi Arabia, selected
Wipro as its partner for managing the data centre operations of the `Disaster Recovery
Centre'. In addition Manso Group, a diversified business group in KSA, having interests
in petrochemicals, steel, laminates and transportation business has chosen Wipro to
Implement Enterprise Application Platform - SAP Enterprise Version.

Wipro's strategy for future growth: Wipro, a leading India based provider of IT
services, has drawn up its strategy to become a world leader in the field. The company
has stated in its latest annual report that the markets addressed by it are undergoing rapid
change due to the pace of technology development and change in business models. It
believes that these trends provide significant growth opportunities.

Wipro as a company going global 21

Wipro expects to significantly grow its global IT services business and the percentage of
its total revenues and profits contributed by this business over the next few years. It
hopes to achieve this objective by identifying and developing service offerings in
emerging growth areas as separate business opportunities, such as infrastructure support
services, business intelligence services and telecommunication, internet and application
service providers.

It is also planning to aggressively develop the research and development services by

focussing on high growth markets such as telecommunication, mobile communication
and the internet and high growth technologies such as embedded software. Also, the
company will be leveraging its experience in providing IT services in the Indian market
and its access to existing clients outside India to provide global support services.

The intention is also to increase the number of clients through a dedicated sales team
focussed on new client acquisitions and increasing its presence in Europe and Asia. The
goal is to make every new client account earn over $1 million in annual revenues within
twelve months. Also the company intends to increase its share of business with existing
clients by expanding its range of IT solutions and by increasing its knowledge of industry
segments and individual client businesses to allow it to better understand client
requirements. The focus would be on improving operating margins by increasing the
revenue per IT professional by providing higher value added services, increasing the
number of productised services and increasing the proportion of the company's fixed
price contracts. In India, the growth plan includes offering a full service technology
solution including systems integration, support services, software and networking
solutions along with branded hardware products which the company hopes would
enhance profitability significantly. The company is also planning to pursue selective
acquisitions of IT service companies that would allow it to expand service offerings and
acquire additional skills. This would strengthen its relationships with clients and allow
the company to realise higher revenues from them. In pursuing acquisitions, the focus
would be on companies where a significant portion of their work can be moved offshore

Wipro as a company going global 22

to India to leverage the company's low cost offshore delivery model and realise higher
margins.

Traditional business: The Company has been in the consumer care business since 1945
and the lighting business since 1992. The consumer care business has historically
generated surplus cash for the company to be able to grow in other businesses. The
strategy is to maintain a steady growth in operating income through efficient capital
utilisation, strong brand name recognition and expanding nationwide distribution
network

Wipro expects to close at least one acquisition in 2007. This is in line with Wipro's
strategy of acquiring a string of companies across different verticals that either fill up
their technology gaps or a ready customer base. It has put through half a dozen
acquisitions over the past 12 months.

POSITIONING WIPRO FOR GLOBAL COMPETETION

Wipro Limited is a leading provider of IT solutions for customers across Americas,

Europe, Asia, Australia and the Middle East. Started as a ground nut crushing unit in
1947, Wipro has grown into a multi business multi location conglomerate. Wipro has
grown from a India centric consumer products manufacturing company to a global
company providing comprehensive service portfolio, an adaptive, value-driven
engagement model and our quality leadership in every aspect of service delivery. The
depth and width of the services that it provide is perhaps unmatched by any other
company.

In its non-IT businesses, Wipro has a significant presence in Consumer Products and in
Infrastructure Engineering. The company has a significant presence in toiletries and

Wipro as a company going global 23

lighting products and solutions. It is the preferred suppliers to OEMs supplying to the
growing infrastructure industry globally.

Wipro, Ltd. operates through a handful of subsidiaries, namely Wipro Technologies,

Wipro Infotech, Wipro Consumer Care and Lighting, Wipro Fluid Power, Ltd. and Wipro
GE Medical Systems, Ltd. The firm has 37 offices across North America, Europe and
Asia. Wipro Infotech is responsible for technology operations in the Indian, Asia-Pacific
and Middle-East markets. Wipro's Consumer Care and Lighting business segment
accounted for 5% of its revenue in fiscal 2006. Wipro Consumer Care and Lighting
focuses on niche markets and offers a mix of consumer products including soaps and
toiletries, light bulbs and fluorescent tubes, lighting accessories and hydrogenated oil. Its
umbrella brands include the Santoor and Wipro Active lines of soap and talcum powders,
as well as the Wipro Baby Soft line of infant and child care products. The Fluid Power
division develops hydraulic technologies for Indian mobile equipment manufacturers,
while Wipro GE Medical Systems, in conjunction with GE, produces and exports
electronic medical equipment. In December 2005, Wipro Technologies purchased
NewLogic, an Austrian semiconductor design firm, for $56 million. This acquisition will
greatly enhance the company's hardware design arm, adding 120 semiconductor
specialists and access to 25 new patent filings. Wipro offers medical and educational
assistance, sabbaticals for higher studies, interest-free and contingency loans, an on-site
cafeteria and transportation to its development centers.

In a vision exercise that Wipro went through in mid 2000, Wipro Technologies expected
to generate annual revenues of US$4bn by 2004. Half of these revenues were to come
from organic growth and the other half from acquisitions. The company is still far from
this goal: revenues in 2001/02 amounted to US$470m. However, Mr. Paul emphasizes
that the US$4bn figure was not meant to be a target but a vision that was used as a
rallying cry for the entire organization to think big. The statement also forced
management to think through a number of fundamental issues such as how to

Wipro as a company going global 24

successfully scale recruiting, induction, quality systems, and delivery mechanisms.
Moreover, if the company is going to grow to the point where a majority of staff have
been employed for less than two years, it will be important to be able to "scale" the
Wipro culture and instill Wipro values.

Like many other Indian IT services companies, Wipro Technologies has also been trying
to diversify away from the US market, which in 2001/02 accounted for 57% of the
company's revenues. It has been targeting particular industries in Europe such as telecom
and utilities. As a result, the share of Europe in revenues, about 36% in 2001/02,is
relatively high compared with many other major Indian software exporters. Japan has
also emerged as a significant market.

The Company's India and AsiaPac IT Services and Products business segment, which is
referred to as Wipro Infotech, is focused on the Indian, Asia-Pacific and Middle-East
markets, and provides enterprise clients with IT solutions. The India and AsiaPac IT
Services and Products segment accounted for 16% of Wipro's revenue in fiscal 2006. The
Company's suite of services and products consists of technology products, technology
integration, IT management and infrastructure outsourcing services, custom application
development, application integration, package implementation and maintenance, and
consulting. In addition, Wipro provides its domestic customers with access to its range of
global IT services, including enterprise solutions, and research and development services.
The acquisition of Saraware would help in positioning itself in the GSM/WCDMA
wireless network market, which stood at $32 billion in 2005. Wipro's near-shore presence
in Europe has been fortified by this acquisition. It would also help Wipro prepare for the
3G evolution and give it access to the mobile security (public radio systems used by
police) domain. The acquisition of the Austrian chip design firm NewLogic would
strengthen Wipro's presence in Bluetooth and the wireless local area network (WLAN)
space in the global market. Acquisition would help the company create a strong footprint
in Europe and enhance the local delivery capability. NewLogic has three design centres
in Europe at Lustenau (Austria), Sophia Antipolis (France) and Munich (Germany). The

Wipro as a company going global 25

NewLogic acquisition is a significant step in the plans to be the leader in the Wireless IP
and RF technology space. It will position Wipro as a complete SoC solution provider to
its customers. The acquisition also helps to consolidate its position as leaders in this
space and more particularly provides a solid base for addressing the large market in
Continental Europe.

Impact in the wipro’s share price in the Indian stock market after it had bought
New Logic and other foreign acquisitions in 2005:

NewLogic is ranked number one in wireless interfaces, WLAN and Bluetooth IP

according to Gartner report of April 2005. NewLogic has 10 per cent global market
share each in WLAN and Bluetooth IP space.

Wipro as a company going global 26

With New Logic’s buyout, Wipro said it is aiming to become number one in
communication standards based semiconductor IP category in the world in three years.
Wipro shares gained 3.25 per cent on Monday to close at Rs 455.80 on the BSE

Financial analysis of Wipro

WIPRO Ltd's net profits grew by 97 per cent over the corresponding quarter last year to
Rs 214 crore. Revenues grew to Rs 798 crore, an increase of 28 per cent year-on-year, a
performance backed by cost cutting, and strategies that seem to have paid off. However,
results showed a negative growth vis-a-vis the previous quarter. Total revenues in Q4 last
year was Rs 938 crore and PAT was Rs 217 crore. The company has been following a
three-pronged strategy -- of going after the large $ 100-billion systems integration and
technology infrastructure market competing with global players; entering the APAC and
Middle East regions through Wipro Infotech and following the Six Sigma processes and
eprocurement as strategies to cut costs. Wipro Technologies, which contributed a major
chunk of revenues at 65 per cent, has shown a growth in offshore realisations of 3.4 per
cent and onsite realisations of 2.6 per cent. Wipro Technologies also contributed 93 per
cent of the PBIT. Revenues from the Global IT arm were Rs 521 crore for the quarter and
PBIT was Rs 190 crore. Operating margins went up to 36 per cent for the first quarter
this year as against from 31 per cent in Q1 ended June 2000, and 35 per cent in Q4 last
year. The increase was primarily due to increase in offshore realisation by 15 per cent and
onsite realisation by 16 per cent. In the quarter, Wipro's R&D Services contributed 52 per
cent of the Global IT services revenue, Enterprise Solutions contributed 42 per cent and
the remaining 6 per cent, was contributed by Technology Infrastructure Services.
Continuing its derisking strategy, the company has brought down the percentage of its

Wipro as a company going global 27

revenues from the US from 65 per cent to 60 per cent compared to the corresponding
quarter last year. Europe has moved up to 33 per cent from 27 per cent and Japan is 6 per
cent. Wipro Infotech, accounted for 20 per cent of the revenues and 4 per cent of the
PBIT. PBIT grew by 26 per cent to Rs 8 crore. Operating margin expanded from 3.8 per
cent for the quarter ended June 2000 to 5 per cent for the three-month period ended June
2001, driven by growth in services and solutions business by 24 per cent year-on-year. In
its first quarter of operations in Asia Pacific and the Middle East, the business won two
marquee customers and generated good interest among prospect base.

For 3rd quarter ended on December 31, 2006:

• Wipro Limited Revenue increased by 45% Year on Year (YoY) to Rs. 39.79
billion (Rs. 3,979 Crores)
• Profit After Tax (PAT) grew by 41% YoY to Rs. 7.65 billion (Rs. 765 Crores)
• Global IT Services & Products Revenue was Rs. 28.76 billion (Rs. 2,876 Crores),
a 35% increase YoY
• Global IT Services & Products Profit before Interest and Tax (PBIT) was Rs. 6.96
billion (Rs. 696 Crores) and grew by 32% YoY; Operating Margin was at 24.2%
• Global IT Services & Products added 37 new clients in the quarter
• Wipro’s India, Middle East & Asia Pac business recorded 56% growth in PBIT
YoY. Revenue grew 76% YoY

Wipro as a company going global 28

FINANCIAL STATISTICS UPTO FINANCIAL YEAR 2005-2006

Wipro as a company going global 29

Wipro as a company going global 30
Wipro as a company going global 31
Wipro as a company going global 32
 Road mapping: ‘Understanding the dynamics of competitors within an industry is
critical for several reasons. First, it can help to assess the potential opportunities for a
business enterprise, particularly important if it is a new venture. It can also be a critical
step to better differentiate a firm from others that offer similar products and services.
Globalization, outsourcing, innovative organizational structures, a far-reaching regulatory
environment - these are just some of the profound trends affecting the way businesses
work today. Roadmapping is an established technique that brings discipline and rigor to
the product and technology planning process. Popularized by Motorola and Corning in
the 1980's, today, industry leaders like Honeywell, Medtronic and Philips rely on
roadmaps to dynamically connect product and technology plans across the company and
strategically map them to market opportunities. Leading innovative companies use
roadmaps to visualize innovation efforts across the enterprise, allowing them to better
plan for and make decisions about the future. Through the process of roadmapping,
organizations can exchange up-to-date strategic planning information about emerging
technologies, customer needs, market demands and competitive information. Today,
many companies are using roadmapping software to streamline the information
collection process, providing more accurate and current data to roadmapping participants.
Because planning information is often stored in static Word, Excel, and PowerPoint
documents on multiple desktops, key strategic planning information often resides in
different functional silos. With roadmapping software, this data is maintained in a central
database, providing participants with the ability to easily access, share, update, and
integrate information throughout the organization. With roadmapping software,
companies are able to optimize visibility into innovation efforts across multiple business
units and departments, providing a collective truth about R&D capabilities, projects and
resources. Roadmapping software can help companies effectively discipline ad hoc
innovation and planning processes, improve communication and collaboration
throughout the planning process, and help align cross-functional participants who need to
stay on top of information as it dynamically changes.

Wipro as a company going global 33

Roadmap of IT sector:

Wipro as a company going global 34

 BCG matrix of Wipro’s SBUs:

The strategic business units of Wipro are, Wipro infrastructure,Wipro infotech,Wipro

ligtining and Wipro consumer durables and Wipro Technologies.

• Wipro Infotech: It falls under Question Mark. Question marks are growing
rapidly and thus consume large amounts of cash, but because they have low market
shares they do not generate much cash. The result is a large net cash comsumption.
A question mark (also known as a "problem child") has the potential to gain market
share and become a star, and eventually a cash cow when the market growth slows. If
the question mark does not succeed in becoming the market leader, then after perhaps
years of cash consumption it will degenerate into a dog when the market growth
declines. Question marks must be analyzed carefully in order to determine whether
they are worth the investment required to grow market share.

Wipro as a company going global 35

*Source: Wipro Infotech had a good third quarter this fiscal. The arm recorded revenues
of Rs 700.8 crore, a growth of 76% Y-o-Y and a PBIT of Rs 58.7 crore, a growth of 56%
Y-o-Y. The services business contributed 32% to the total revenues and grew 49% Y-o-Y,
while the products business grew 91%. The division’s contribution to Wipro’s total sales
stood at 18% in the third quarter as against 15% in the previous two quarters. Wipro
Infotech’s share of Wipro’s PBIT was 7%.

Wipro Technologies: It falls under Question Mark.

*Source: Europe has been one of the fastest growing markets for Wipro. For the fiscal
year 2005-06, Revenues from Wipro’s the European operations delivered 48% growth
rate and contributed more than 32% to Wipro’s IT Services revenues.

Wipro consumer care & lighting: It falls under Question Mark.

*Source: Wipro's Consumer Care and Lighting division will be firing on several
cylinders in the current year. It is buoyed by the 20 percent plus top line growth achieved
in two successive years(2003-05). When the FMCG industry as a whole has been moving
forward at 4-5 percent.

Wipro's lighting division, set up in 1992, has been catering to specialised niche segments
within the institutional sector, such as software companies, banks and landscaping. The
organised lighting industry is estimated at about Rs 500 crore, and Wipro, Philips and
Bajaj are among the leading players.

Wipro as a company going global 36

Wipro infrastructure engineering: it also falls under Question Mark.

*Source: Azim Premji addressing the analysts for the quarter ends 31st dec, 2006.

Azim Premji addressing to the investors in AGM:

The infrastructure business is a big growth driver for us. Even if you look at our last
quarter performance, the performance was 20% less sequential growth. At last quarter
we've grown roughly 80% year-on-year. So it is a high growth business and a big growth
driver for us globally as well as a big differentiator for us globally.

Wipro as a company going global 37

Future Road Map of Wipro:

The software industry is anticipated to grow at 25% a year over the next five years as per
the McKenzie Nasscom report, and the BPO industry is expected to grow in excess of
30% a year. On a sum total, we will grow ahead of the industry going forward.

Wipro as per current financial data , Revenue increased by 30% to reach 10,626 crores;
Profit after tax grew 27% to reach 2067 crores. Revenue from our combined IT business
crossed two billion dollars landmark. Global IT services business grew 33%; and Wipro
Infotech, the India, Middle East, and Asia Pac business, grew 22%. R&D business as
well as the Europe Geo reached half a billion dollar mark in this fiscal. And employee
strength reached about 53,000 crossing the 50,000 mark.

In the coming years the company will grow by more than 30% in terms of revenue and
profit because of more overseas acquisitions and demand in the IT Market.

Coming to the point of consumer care durables and engineering products,Wipro is

implementing aggressive promotion and advertising cost so that we can predict the
demand and can increase the market share of consumer cares.
In other terms the rise and booming of Retail sector, Wipro can take the advantage of
extending its consumer care product lines and can have joint ventures with several
Branded Retail like WalMart, Big Bazaar and reliance like oranic Retail stores to sell its
product and hold and continue to increase the demand for its consumer care products.

IT software and services industry in India accounted for 2.4 per cent of the country's
GDP and 16 per cent of exports in 2002-03.

- By 2008, the Indian IT software and services industry is projected to account for 7 per
cent of India's GDP and 35 per cent of total exports.

Wipro as a company going global 38

 Suggestions and Recommendations:

1. Product Diversification: It can move to related-diversified towards

telecommunication and Mobile handsets in India, which is a 3rd largest user for
Mobile phones. and other emerging countries

2. Strategic Business Units which are right now in question Mark (BCG Matrix)
should increase their market share by implementing long term strategies to
become in the star mark(BCG Matrix). It should strengthn the domestic market as
well by taking the advantages of liberlisation and Globalisation.

3. Establish presence in emerging markets such as Brazil, china, korea, where there
is a huge potential for further growth. Since being the first player in the market
results in market leadership in subsequent years when the market is more open
and attractive for other investors.

4. Wipro should try to improve in net profit margins to improve its valuations in the
coming years.

5. Wipro can take the strategic advantage of growing market demand of retails
which is booming in Indian Market by having strategic alliance with different
Retail Companies.

Wipro as a company going global 39

BIBLIOGRAPHY:

www.wipro.com

Business Today magazine

www.wipro.com/webpages/index.htm

Data Quest Magazine

www.Quickmba.com

www.hinduonnet.com

Business Line

www.marketresearch.com/product

www.dqindia.com

Wipro as a company going global 40