Wipro May Turn PC Plant Into Consumer Product Plant

BANGALORE: Wipro, which exited hardware business six months ago, is evaluating a plan to turn its computer manufacturing and assembly factories in Puducherry into a production unit for its consumer care and lighting division, a senior executive said.

The Bangalore-based company, which used to manufacture laptops, desktops and servers at the Puducherry plant, exited its struggling hardware business in December last year due to weak customer demand and increased competition from rival PC makers.

“We are evaluating how best to use that plant but Wipro consumer care business could use it,” said Soumitro Ghosh is the Chief Executive for Wipro Infotech, the India and Middle East IT business unit of Wipro Ltd.

Ghosh, who used to head Wipro’s banking, financial services and insurance business until October last year, said the company has managed to absorb “almost 100% of the full-time factory employees”, and that most of them have joined the manufacturing industry vertical that contributes about 18% of the overall sales.

Wipro entered the hardware business in 1982, but later expanded into IT services, which later became its mainstay business. The company discontinued its unprofitable hardware business weeks after home-grown rival HCL Infosystems announced it would exit the PC manufacturing business.