Wipro rides high on software boom..
Anil:
Here is another good one worth considering.
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(Courtesy: Quantum research)
The company
Wipro Ltd. is a part of Wipro Corporation, and is engaged in the businesses of information technology, financial services, health care systems, consumer, lighting, and hydraulic products. Its infotech division is the premier PC and peripherals supplier in the country, and the second largest software service provider. It is an IT leader in many sectors, including finance, telecom, government and energy.
Wipro markets its own products as well as those of its partners including Canon, Sun Microsystems, Cisco, Epson, HP, Tandem, and Seiko. Besides, it markets software products of Netscape, Adobe, and Borland. Wipro's international operations are spread across USA, Europe and the Asia-Pacific regions. International clients include Samsung, Lucent, Mitsubishi and Sony. It has entered the high-end of the PC maket in (55:45) collaboration with Acer. It also has a JV with British Telecom for providing value-added network and VSAT services.
The consumer division manufactures vanaspati, baby products, and toilet soaps. Its lighting division has a technical collaboration with Toshiba lighting, while its medical systems division has a JV with GE (USA) and the the hydraulics division has an alliance with Sun Hydraulics (USA).
During FY98, Wipro's software revenues contributed 27% towards sales and is now its largest division. Software is the thrust area for the company's future plans, and it plans to ride the Y2K and Euro boom. By FY2000, Wipro plans to expand its software facilities by 200,000 sq.ft., and set up subsidiaries abroad at an estimated cost of Rs 3 bn. Its total capex for the next three years is Rs 4 bn.
Is Azim Premji India's richest individual?
Over the past two years, Wipro's market capitalisation (defined as number of shares outstanding x market price per share) has increased exponentially, and with it, the networth of its chief promoter, Mr Azim Premji (Chairman & Managing Director). A quick calculation yields the following:
No. of shares outstanding 45.83 m
Market price per share Rs 1,716.50 (as on 28th September '98)
...leading to a market capitalisation of Rs 78,667 m or US$ 1,851 m (at Rs 42.5 per US$)
Azim Premji's holds 77% of Wipro's equity which implies that his holding in Wipro is worth around Rs 60,574 m or US$ 1,425 m
...which is far ahead of the Ambanis, Bajajs and Birlas in these beleagured times.
So is Azim Premji the richest man in India? Just off the record, Mr. Subhash Chandra could come a close second depending on how the now-on-now-off deal with Rupert Murdoch Star TV works out. Watch this space for more of that.
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