1. After the Cover page, create a sheet for the declaration which should be in the following format:

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

A UGC Recognized Institute

A-8B, Plot-C, Sector-62, Noida

DECLARATION

I, ______________________, bearing the Roll No___________ Class________________ of the Institute of Management Studies, Noida hereby declare that the Seminar Report-108 entitled _______________________ is an original work and the same has not been submitted to any other Institute for the award of any other diploma. The suggestions as approved by the faculty were duly incorporated.

Signature of the Student

Countersigned

Signature of the Faculty Guide

2. Points to be remembered:

The font size is varying from paragraph to paragraph in your report. And also the font style is varying. Make it uniform throughout by using Times New Roman font and in 12 size.

Spacing should be 1.5 in between lines.

Some content needs to be added for CSR and you can find the same on http://www.wipro.com/corporate/aboutus/corporate-social-responsibility.htm Incorporate it well.

You can shorten/summarize the elaborate content given for ‘Strategy

to become Global’, ‘Positioning for Global Strategy’, ‘Financial

Analysis’ and ‘Financial Statistics’ Its too elaborate.

The page of ACKNOWLEDGEMENT is missing.

Separate History of the organization from the Introduction.

The numbering of pages given in the table of contents is incorrect. It

should be like this: 1-2. 3-5 and so on.

Seminar Report

on

“WIPRO”

(Times New Roman, Bold, Font Size 18 and 1.5 spacing)

Submitted in Partial Fulfillment for the Award of the Diploma of

Post Graduate Diploma in Management

(Session 2010-12)

(Font Size 14)

Submitted to: Submitted By:

Miss. Shailja Saxena Madhur Malik

Internal Guide PGDM – I Trimester

Roll No

Sec-B

DEPARTMENT OF MANAGEMENT

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

A UGC Recognized Institute

A-8B, Plot –C, Sector-62, Noida

DECLARATION

I Madhur Malik hereby declare that the project work entitled

“WIPRO”, is a record of an original work done by me under the

guidance of _____________ , ________________, and this project

work is submitted in the partial fulfillment of the requirements for

the award of Post Graduation Diploma in Management. The results

embodied in this thesis have not been submitted to any other

University or Institute for the award of any degree or diploma.

TABLE OF CONTENTS

Topic Page No:

» Company Overview 02

» Global IT Industry Overview 05

» Wipro’s SBU’s 07

» Strategic Alliances 08

» 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

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'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- 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, 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 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

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 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.

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.

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:

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

2006 2007 2008 2009 2010

0

20

40

60

80

100

120

140

17.1 18.5 20.2 22.3 24.810.9 11.9 13.2 14.7 16.6

24.3 24.9 25.4 25.926.3

56.3 59.262.3 65.6

69.1

Projected IT Services Spending (Bn Euros)

Project Based Services

Infrastructure Related Outsourcing

BPO

Application Outsourcing

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 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

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.

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.

Weaknesses

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.

Opportunities

IT Sector is booming

Innovations of latest Technologies

Good scope for expanding business

worldwide(liberalization, Globalization,

Privatization)

Threats

Increase in English speaking people in china.

Emerging Small IT companies

Unrelated diversification of other multinational

companies such as TATA Elxi, L&T

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 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’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.

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.

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 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 (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 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 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 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 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 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 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.

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 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

FINANCIAL STATISTICS UPTO FINANCIAL YEAR 2005-2006

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.

Roadmap of IT sector:

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.

*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 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.

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.

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.

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