Premji looks for acquisitions in consumer care
Wipro is not just looking at overseas acquisitions, but is also keen on domestic buyouts, be it in the IT space or consumer care.
By TNN |
BANGALORE: Acquisitions would continue to be a dominant theme for Wipro. The company is now honing on large acquisitions, says Wipro chairman Azim Premji. “The growth rate of revenues in our acquisitions is significantly ahead of the company’s growth rates. We intend to look at large deals,” he added. Typically, Wipro has done deals in the $20 million to $25 million range (cost of acquisition).
Wipro is not just looking at overseas acquisitions, but is also keen on domestic buyouts, be it in the IT space or consumer care.
The six acquisitions consummated during the last 10 months brought in revenues of Rs 136.8 crore for the second quarter (Q2) ended September 30, 2006, while for the six-month ended September 30, 2006, this was pegged at Rs 193.3 crore. Analysts at some of the broking firms tracking IT sector say that the ‘string of pearl’ acquisition strategy of Wipro is not to be seen as revenue or earning accretive, but was vital from a cross-sell opportunity. It would be pertinent to mention here that Wipro is aggressively pursuing an end-to-end solution strategy which is bearing fruit for arms like Wipro BPO.
The profit before interest, taxes and depreciation (PBIT) for the acquisitions was only Rs 1.4 crore in Q2, while the six-month period saw a loss of Rs 8.2 crore.
Wipro is not just looking at overseas acquisitions, but is also keen on domestic buyouts, be it in the IT space or consumer care.
The six acquisitions consummated during the last 10 months brought in revenues of Rs 136.8 crore for the second quarter (Q2) ended September 30, 2006, while for the six-month ended September 30, 2006, this was pegged at Rs 193.3 crore. Analysts at some of the broking firms tracking IT sector say that the ‘string of pearl’ acquisition strategy of Wipro is not to be seen as revenue or earning accretive, but was vital from a cross-sell opportunity. It would be pertinent to mention here that Wipro is aggressively pursuing an end-to-end solution strategy which is bearing fruit for arms like Wipro BPO.
The profit before interest, taxes and depreciation (PBIT) for the acquisitions was only Rs 1.4 crore in Q2, while the six-month period saw a loss of Rs 8.2 crore.
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