Inorganic Growth of Wipro

Inorganic growth is classified by growth in the operations of a business through mergers or takeovers, when compared to an increase in the companies own business activities. It is believed to be a faster way for any company to grow when compared with organic growth. In the technology space, growth is directly related to innovation, and the best way for firms to compete is to choose to align themselves with innovative companies, even if it means that they have to buy these companies.

Steve Hamm, senior writer and the software editor at BusinessWeek, wrote in Bangalore Tiger: How Indian Tech Upstart Wipro Is Rewriting the Rules of Global Competition that "Wipro is not just a company, it's a quest. And, in a fiercely competitive and rapidly changing business environment, no company that is not also a quest can succeed for long. Bottom line: Wipro matters because it challenges other companies to strive for excellence."

Wipro's list of acquisitions is long and illustrious. Last year, Wipro acquired the consumer products and lighting business of Yardley and Unza Holdings, which manufactures a number personal care and household care products. In 2006, Wipro acquired cMango Inc., a US based Technology Infrastructure Consulting firm. In 2007, Wipro entered into a agreement to acquire Oki Techno Centre Singapore Pte Ltd (OTCS). Since December 2005, Wipro Technologies has acquired over eight technology companies in Europe and the US. Wipro struck a deal with Saraware Oy, a 21 year old Finnish company, a leading provider of design and engineering services to telecoms companies, for Euro 25 Million in June 2006.

Earlier this year, Wipro Ltd's Joint CEO-IT Business, Girish Paranjpe stated that they are looking out for acquisitions in niche segments like telecom, healthcare and energy utilities in the coming years. He said that the company will be growing through both organic and inorganic routes.

Wipro is known for its ambitious growth plans and the aim of its acquisitions is not necessarily to facilitate greater sales. It seeks to find skills needed in newer and "in demand" domains and even access to newer customers through a smaller acquisitions. As Ramesh Emani, ex President, Product Engineering Services of Wipro Technologies put it "It's the 'string of pearls' acquisition strategy in which we look for complimentary companies that add value to us".

Wipro Limited M&A Summary

Wipro Limited has made 30 acquisitions while taking stakes in 4 companies. Wipro Limited has 7 divestitures during this period.

Year Acquisitions Stakes Divestitures

2012 0 0 0

2011 1 0 0

2010 1 0 0

2009 1 0 0