Acquisition Strategies by Wipro (Vinay M - 0921911)

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Acquisition Strategies by Wipro Acquisition Strategies by Wipro Presented by: Presented by: Vinay M (0921911) Vinay M (0921911)

Transcript of Acquisition Strategies by Wipro (Vinay M - 0921911)

Page 1: Acquisition Strategies by Wipro (Vinay M - 0921911)

Acquisition Strategies by WiproAcquisition Strategies by Wipro

Presented by:Presented by: Vinay M (0921911)Vinay M (0921911)

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TOPICSTOPICS

Mergers & Acquisitions (M&A) in INDIAMergers & Acquisitions (M&A) in INDIA

Acquisition Strategies at WIPROAcquisition Strategies at WIPRO

Acquisition by WIPRO: An ExampleAcquisition by WIPRO: An Example

Acquisitions by WIPRO: StatisticsAcquisitions by WIPRO: Statistics

Latest NewsLatest News

Q&AQ&A

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Mergers & Acquisitions in INDIAMergers & Acquisitions in INDIA

M&A Across Indian SectorsM&A Across Indian Sectors

INDIA is now one of leading nations in the world in terms of M&AINDIA is now one of leading nations in the world in terms of M&A

IT, Telecom, Finance, FMCG, Automobile, Steel & Construction Materials IT, Telecom, Finance, FMCG, Automobile, Steel & Construction Materials

Total Estimated to a Value of $100 billion in 2007Total Estimated to a Value of $100 billion in 2007

Latest / Changing TrendsLatest / Changing Trends

Acquiring Foreign CompaniesAcquiring Foreign Companies

Factors ResponsibleFactors Responsible

Favorable & Dynamic Government PoliciesFavorable & Dynamic Government Policies

Economic StabilityEconomic Stability

Additional Liquidity Additional Liquidity

Increased Participation in Global Corporate SectorIncreased Participation in Global Corporate Sector

Dynamic Attitudes of Indian EntrepreneursDynamic Attitudes of Indian Entrepreneurs

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Acquisition Strategies at WIPROAcquisition Strategies at WIPRO

STRING of PEARLSTRING of PEARL

Acquiring Small and Mid-Sized companies operating in niche segments Acquiring Small and Mid-Sized companies operating in niche segments

Expand geographic footprint and also add new delivery centers in Expand geographic footprint and also add new delivery centers in

strategic locations such as US & UK. strategic locations such as US & UK.

Recent Acquisitions in Niche Segments:Recent Acquisitions in Niche Segments:

New Logic, Nerve wire, cMango, mPower, Saraware, Enabler and QuantechNew Logic, Nerve wire, cMango, mPower, Saraware, Enabler and Quantech

Its acquisition strategy is guided by three factors: Its acquisition strategy is guided by three factors:

Strengthening the domain expertiseStrengthening the domain expertise

Adding new service line Adding new service line

Expanding geographical reachExpanding geographical reach

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Acquisition by Wipro: An ExampleAcquisition by Wipro: An Example

Acquisition in 2002: American Management System’s global Acquisition in 2002: American Management System’s global

energy practiceenergy practice

Shell had outsourced a range of its IT requirements to IBM and Wipro in a Shell had outsourced a range of its IT requirements to IBM and Wipro in a

total deal, which will run up to $3 billion (about Rs 1,35,000 crores) over a total deal, which will run up to $3 billion (about Rs 1,35,000 crores) over a

period of timeperiod of time

AMS's expertise will be the lever for Wipro to get a significant part of this AMS's expertise will be the lever for Wipro to get a significant part of this

deal deal

Wipro acquired the AMS consulting capabilities in the energy practice for Wipro acquired the AMS consulting capabilities in the energy practice for

$26 million. This acquisition is certainly pays off pretty well in respect to $26 million. This acquisition is certainly pays off pretty well in respect to

Shell as well as to scale up the energy practiceShell as well as to scale up the energy practice

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Acquisitions by Wipro: StatisticsAcquisitions by Wipro: Statistics

Wipro Ltd. has made 26 acquisitions while taking stakes in 4 Wipro Ltd. has made 26 acquisitions while taking stakes in 4

companies. Wipro Ltd. has 7 divestitures during this period.companies. Wipro Ltd. has 7 divestitures during this period.

Acquisition of Information Technology (IT) Infrastructure Acquisition of Information Technology (IT) Infrastructure

Management Company Infocrossing at a price of $600 million in Management Company Infocrossing at a price of $600 million in

2007 - one of the biggest acquisition by Wipro2007 - one of the biggest acquisition by Wipro

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Latest NewsLatest News

Wipro Eyes Acquisitions In Niche Segments - Wipro Ltd is looking at Wipro Eyes Acquisitions In Niche Segments - Wipro Ltd is looking at

acquisitions in the telecom, healthcare and energy utilities segments, acquisitions in the telecom, healthcare and energy utilities segments,

as part of its plan to strengthen its services in these verticalsas part of its plan to strengthen its services in these verticals

Wipro is targeting smaller firms with strong product offerings, though Wipro is targeting smaller firms with strong product offerings, though

the timeframe and the geographies for the acquisitions is not disclosedthe timeframe and the geographies for the acquisitions is not disclosed

Rishad Premji is elevation as Wipro’s chief strategy officer (CSO) from Rishad Premji is elevation as Wipro’s chief strategy officer (CSO) from

September 1, 2010September 1, 2010

In Wipro, the CSO looks after two key responsibilities: strategy and In Wipro, the CSO looks after two key responsibilities: strategy and

acquisition, both critical to the future of the companyacquisition, both critical to the future of the company

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Q&AQ&A

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THANK YOU!THANK YOU!