MIRA INFORM REPORT
|
Report
Date : |
12.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
WIPRO
CONSUMER CARE AND LIGHTING DIVISION OF WIPRO LIMITED |
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Registered
Office : |
Doddakannelli, Sarjapur Road, Bangalore – 560035, Karnataka |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
10.07.1996 |
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Com.
Reg. No.: |
08-20800 |
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CIN
No.: [Company
Identification No.] |
L99999KA1996PLC020800 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
BLRW00415C |
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Legal
Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line
of Business : |
Software exports, software & services, consumer care, lighting
and healthcare. Providing services of IT and IS consulting for E-business
transformation, electronic commerce, web enabling, data warehousing and
customer relation's management. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
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Maximum
Credit Limit : |
USD
250000000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well-established and reputed company having
excellent track records. Available information
indicates high financial responsibility of the company. Financial position is good. Payments are always correct and as per
commitments. The company can be considered normal for business dealings
at usual trade terms and conditions |
LOCATIONS
|
Registered
/ Corporate Office : |
Doddakannelli,
Sarjapur Road, Bangalore - 560 035, Karnataka, India |
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Tel.
No.: |
91-80-28440011 |
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Fax
No.: |
91-80-28440054 |
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E-Mail
: |
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Website
: |
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Software
Technology Parks: |
·
Bangalore,
Karnataka ·
Chennai,
Tamilnadu ·
Secunderabad,
Andhra Pradesh ·
Pune,
Maharashtra ·
Gurgaon,
Haryana ·
Hyderabad,
Andhra Pradesh ·
Mumbai,
Maharashtra |
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Factory : |
> Sigma Infotech Park,
Whitefield, Bangalore, Karnataka, India > S B Towers, 88, M G Road,
Bangalore - 560 001, Karnataka, India > 608-610, Carlton Towers, No.
1 Airport Road, Bangalore - 560 001,
Karnataka, India > Information Technology Park,
Whitefield, Bangalore - 560 066,
Karnataka, India > 271-27 1 A, Sri Ganesh
Complex, Hosur Main Road, Bangalore - 560
068, Karnataka, India > 26, Sri Chamundi Complex,
Madivala II, Bommanahalli, Hosur Main
Road, Bangalore - 560 068, Karnataka, India > No. l, 2, 3, 4 and 54/1,
Survey No. 201/C, Madivala III, Bangalore - 560
068, Karnataka, India > No. l, 2, 3, 4 and 54/1,
Survey No. 201/C, Madivala III (Research &
Development), Bangalore - 560 068, Karnataka, India > No. 1 , 2, 3, 4 and 54/3,
Survey No.- 201/C, Madivala IV, Bangalore –
560 068, Karnataka, India > 3rd Floor, Ahmed Plaza,
No.38/l&2, Bertenna Agrahara, Hosur Main
Road, Bangalore - 560 068, Karnataka, India > Subramanya Arcade,
Bannergatta Main Road, Bangalore, Karnataka,
India > K-3 1 2, Koramangala
Industrial Layout, Bangalore - 560 095,
Karnataka, India > V Block, Koramangala,
Bangalore - 560 095, Karnataka, India > Electronics City 1 - No. 72,
Keonics Electronic City, Hosur Road,
Bangalore - 561 229, Karnataka, India > Electronics City - II, Tower
IV, No. 72, Keonics Electronic City, Hosur
Road, Bangalore - 561 229, Karnataka, India > No.92, 2nd Main Road, KEONICS
Electronic City – SIRI, Bangalore –
561 229, Karnataka, India > S. No. 70/1, 2, 3, 4(P)
&. 84/1, 2, 3, 4(P) Doddathogur Village, Begur
Hobli, ' Bangalore - 561 229, Karnataka, India > Capitale, 552 &. 555,
Anna Salai, Teynampet, Chennai, Tamilnadu > 475A, Shollinganallur, Old
Mahabalipuram Road (CDC-III), Chennai –
600 019, Tamilnadu > 111, Mount Road, Guindy,
Chennai - 600 032, Tamilnadu > No. 105, Guindy, Mount Road,
Chennai - 600 032, Tamilnadu > Infotech Park, SDF Building,
4th Floor, Kusumagiri, Kakkanad, Cochin > Infotech Park, 4th Floor,
Vismaya Building, Kakkanad, Cochin > 239, Okhla Industrial Estate,
Delhi, India > Plot No.27/28, Phase IV,
Udyog Vihar, Gurgaon - 122 016 > Plot No. 281,Phase II, Udyog
Vihar, Gurgaon - 122 106, Haryana > No. 480-481, Udyog Vihar,
Phase-Ill, Gurgoan - 122015, Haryana > S. No. 203/1, Manikonda Jagir
Village, Rajendranagar Mandal, RR
District, Hyderabad > Survey Nos. 64,
Serilingampali Mandal, Madhapur, Hyderabad -
500
033 > Queens Plaza, S P Road, Hyderabad
- 500 033, Andhra Pradesh > Plot No. 1, 7, 8 & 9,
Block-DM, Sector- V, Saltlake, Kolkata - 700 091,
West Bengal > 146/147, Mettagalli
Industrial Area, Mettagalli, Mysore > Vashi, Navi Mumbai, Mumbai,
Maharashtra, India > Plot No. 2, MIDC, Infotech
Park, Hingewadi, Pune - 411 027,
Maharashtra > 1-8-448, Lakshmi Buildings, S
P Road, Begumpet, Secunderabad - 500
016 |
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Overseas
Offices : |
1300,
Crittenden Lane, # 200, Mountain View, CA 94043, U.S.A. Tel. No.
: 91-650-3163555 Fax No. :
91-650-3163467 Mimet
House, Sa Praed Street, London W2 INJ, U.K. Tel. No.
: +44 [020] 70873770 Fax No. :
+44 [020] 72625360 Yokohama
Landmark Tower, 9F # 911A, 2-2-1-1, Minato – Mirai, Nishi-Ku, Yokohama-shi,
Kanagawa, 220-8109, Japan Tel. No. :
+81 [45] 650 3950 Fax No. :
+81 [45] 650 3951 Wipro Technologies
1995, El
Camino Real, Suite 200, Santa Clara, CA 95050, USA Tel. No.:
(408) 249 6345 Fax No.:
(408) 6157174 / 6157178 15455 N.
W., Greenbrier Parkway, Suite 210, Beaverton, OR 97006, USA Tel. No.:
(503) 4390825 Fax No.:
(503) 4398426 10655 N.
E., 4th Street, Suite 400, Bellevue, WA 98004, USA Tel. No.:
(425) 4553486 Fax No.:
(425) 6880973 833, East
Arapaho Road, Suite 202, Richardson, TX 75081, USA Tel. No.:
(972) 6716130 Fax No.: (972)
6716134 2432, W.
Peoria Avenue, Suite 1323, Phoenix, AZ 85029, USA Tel. No.:
(602) 8705780 Extn.: 101 100, W.
22nd Street, Suite 106, Lombard, IL 60148, USA Tel. No.:
(630) 8899860 Fax No.:
(630) 8899187 8901,
Lyndale Avenue, South Suite 106, Bloomington, MN 55420, USA Tel. No.:
(952) 9489683 Fax No.:
(952) 9489684 12081,
Lafayett Street, Thornton, CO 80241, USA Tel. No.:
303-254 2457 Fax No.:
720-244 4872 33
Woodcock Avenue, #23 Haverhill, MA 01832, USA Tel. No.:
978-372 9531 Fax No.:
978-372 9560 345,
Buckland Hills, Dr. Suite 7213, Manchester, CT 06040, USA Tel. No.:
860-644 3657 Fax No.:
860-644 3667 220, Old
New Brunswick Road, Suite 202, Piscataway, NJ 08854, USA Tel. No.:
(732) 4650401 Fax No.:
(732) 4650420 Top Floor,
Kings Court, 185, Kings Road, Reading RG 14 EX, United Kingdom 2432, W
Peoria Ave, Suite 1323, Phoenix, Arizona, USA AZ 85029 Room no.
1064, Hatanpaankatu 1 (Kulma-Sarvis), Tampere, Finland Chrysler
Building, 6th Floor, 1 Riverside Drive West, Windsor ONN5A5K4,
Canada Web
Campus, Kaistrasse, 101 Kiel 24114, Germany |
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Branches
: |
Wipro Infotech Software & Service
88, M. G. Road, Bangalore – 560 001,
Karnataka
Tel. No. 91-80-2558 8422 Fax No. 91-80-2558 6657 Wipro Consumer Care & Lighting Group
Nirmal,
241-242, Nariman Point, Mumbai – 400 021, Maharashtra Tel. No. 91-22-22029254 Fax No. 91-22-2284 1143 Wipro Fluid Power
9B/10A
Peenya Industrial Area, Bangalore – 560 058, Karnataka Tel. No. 91-80-2839 4982 Fax No. 91-80-2839 6450 Wipro Biomed
903/904
Prakash Deep, 7, Tolstoy Marg, New Delhi – 110 001 Tel. No. 91-11-2332 5677 Fax No. 91-11-2373 8675 Wipro Lighting
Tulsi
Chambers, Opp. St. Francis D’Sales High School, Jalna Road, Aurangabad – 431
001, Maharashtra Tel. No. 91-240-2333 351 Fax No. 91-240-2334
001 |
DIRECTORS
|
Name : |
Mr. Azim
Hashmi Premji |
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Designation
: |
Chairman |
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Date
of Appointment : |
01.09.1968 |
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|
Name : |
Dr. Ashok
Ganguly |
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Designation
: |
Chairman,
ICICI One Source Limited. Former Chairman, ICI India Limited |
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Date
of Appointment : |
01.01.1999 |
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|
Name : |
Mr. B. C.
Prabhakar |
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Designation
: |
Practitioner of Law |
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Date
of Appointment : |
20.02.1997 |
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|
Name : |
Mr. Vivek
Paul |
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Designation
: |
Vice Chairman and Executive Officer |
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Date
of Appointment : |
26/07/1999 |
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Name : |
Mr.
Narayan Vaghul |
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Designation
: |
Chairman, ICICI Bonk Limited |
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Date
of Appointment : |
09.06.1997 |
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|
Name : |
Professor Eisuke Sakakibara |
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Designation
: |
Professor
of Economics, Keio Universityjapan |
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Date
of Appointment : |
01/01/2002 |
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|
|
Name : |
Mr. P. M.
Sinha |
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Designation
: |
Former Chairman, Pepsi Company India Holdings |
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Date
of Appointment : |
01.01.2002 |
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|
|
Name : |
Dr. Jagdish N Sheth |
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Designation
: |
Professor
of Marketing, Emory University, USA |
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Date
of Appointment : |
01.01.1999 |
MAJOR SHAREHOLDERS
CATEGORY |
NO. OF SHARES |
PERCENTAGE (%) |
Promoters ' Holdings
|
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Promoters
|
|
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|
Promoters
in his capacity as partner of Partnership firms |
975520800 |
68.42 |
|
Promoter
in his capacity as director of Private Limited Companies |
128137800 |
8.99 |
|
Promoter
in his individual capacity |
56043060 |
3.93 |
|
Promoter
Director’s Relatives |
1434600 |
0.10 |
|
Sub Total |
1161136260 |
81.44 |
|
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|
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Non Promoter's
Holdings
|
|
|
|
Mutual
Funds and UTI |
8161139 |
0.57 |
|
Banks, Financial
Institutions and Insurance Companies |
14024057 |
0.98 |
|
FIIs |
66695330 |
4.68 |
|
Sub Total |
88880526 |
6.23 |
|
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|
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Others
|
|
|
|
Private
Corporate Bodies |
33197511 |
2.33 |
|
Indian
Public |
98080601 |
6.88 |
|
NRIs /
OCBs |
14944157 |
1.05 |
|
Directors
and Relatives |
23000 |
0.00 |
|
Trusts |
8007415 |
0.56 |
|
ADR’s |
21484797 |
1.51 |
|
Sub Total |
175737481 |
12.33 |
|
Total |
1425754267 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Software exports, software & services, consumer care,
lighting and healthcare. Providing services of IT and IS consulting for E-business
transformation, electronic commerce, web enabling, data warehousing and customer
relation's management. |
|
|
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Products
: |
Item code
no (ITC Code) 84713010 Product
description
Personal Computer ii) Item
code no (ITC Code) 85249113 Product
description I.T.
Software iii) Item
code no (ITC Code) 15162011 Product description Vegetable fats and oils
(Edible Grade) |
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Exports
to : |
USA (75%), Indonesia, Japan, The Netherlands, Sweden,
Taiwan and Thailand. |
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Imports
from : |
Germany, Japan, Singapore, UK and USA |
PRODUCTION
STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Vanaspati/Hydrogenated oils |
TPA |
144000 |
45000 |
5257 Tons |
|
Toilet soaps |
TPA |
64000 |
47930 |
38404Tons |
|
Leather shoe uppers, leather shoes
and allied articles |
Pairs / Nos. [1000s] p.a. in
millions |
750 |
750 |
375 |
|
Fatty acids |
TPA |
20000 |
20000 |
20767 Tons |
|
Glycerine |
TPA |
2000 |
1800 |
919 Tons |
|
GLS lamps |
000s |
50000 |
50000 |
-- |
|
TL shells |
000s |
12694 |
12694 |
-- |
|
Fluorescent tube lights |
000s |
10694 |
10694 |
9283 |
|
CFL |
Nos. in 000s |
6658 |
6658 |
-- |
|
Mini computers/micro processor
based systems and data communication systems |
NPA |
180000 |
180000 |
104748 Nos. |
GENERAL INFORMATION
|
Suppliers
: |
Ř
Atco
Controls India Private Limited Ř
Arya
Filaments Private Limited Ř
Bhargava
Rotopack Private Limited Ř
Bombay
Oil Seals Company Ř
Capart
Industries Private Limited Ř
Everlite
Corporation Ř
Exerlite
Industries Ř
Fluo-Lite
Private Limited Ř
Glostar
Electricals Private Limited Ř
Har-Hal
Plastic Engineering Private Limited Ř
Infocontral
Systems Inc. Ř
Karthiks Ř
Kay
Pee Industries Ř
Kasa
Luminaties Private Limited Ř
Maharashtra
Industries Ř
Meet
Engineering Private Limited Ř
Mercury
Lamps Private Limited Ř
Prachi
Industries Ř
Prospects
Industries Ř
Punjab
Anand Lamp Industries Ř
R C
Industries Ř
Regal
Luminaries Ř
Rotam
Commercials Ř
Sandesh
Electricals Ř
SOBO
Technology Ř
South
India Auto Engineering Works Ř
Starlite
Components Limited Ř
Sujatha
Wood Industries Ř
Superstars Ř
Triumph
Pack Private Limited Ř
Ujas
Electricals Private Limited Ř
Unilux Ř
Unique
Wires Private Limited Ř
Vijay
Halo Coils Private Limited Ř
Vijay
Litetronics Comp Limited Ř
Vossloh-Schabe
India Private Limited |
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Customers
: |
Ř
3COM Ř
ABN
Amro Ř
Alcatel Ř
Allianz
Church & General Ř
Analog
Devices Ř
Aristasoft Ř
AT
& T Ř
Baxter Ř
BSI Ř
BT Ř
Cisco Ř
Compaq Ř
ContentGuard Ř
Corel Ř
Cox
& Kings Ř
Daiwa Ř
Energy.com Ř
Epson Ř
Ericsson Ř
Esupportnow.com Ř
Farmers
insurance Ř
Franklin
Templeton Ř
Fujitsu Ř
General
Motors Ř
Genuity Ř
Geoutilities.com Ř
Home
Depot Ř
HP Ř
IBM Ř
Japan
Travel Bureau Ř
JP
Morgan Ř
KPN Ř
Lucent Ř
Magneti
Marelli Ř
Marconi Ř
Menlo
Logistics Ř
Microsoft Ř
Mitsubishi Ř
Morgan
Stanley Ř
NCR Ř
NEC Ř
Newbridge Ř
Nike Ř
Nortel Ř
Npower Ř
NTL Ř
OTIS Ř
PacifiCorp Ř
Pepco
Energy Services Ř
Pindar Ř
Seagate Ř
Sharp Ř
Skandia Ř
Sonera Ř
Sony Ř
Spice Ř
Sun Ř
Sunquest Ř
Telstra Ř
Texas
Instruments Ř
Thames
Water Ř
Thomas
Cook Ř
Trafalgar
Tours Ř
Transco Ř
Tufts
Healthplan Ř
TIBCO Ř
United
Technologies Ř
US
Wireless Ř
VLSI Ř
Weyerhaeuser Ř Winterthus |
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No. of
Employees : |
14000 |
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Bankers
: |
Ř
Canara
Bank, Bangalore, Karnataka Ř
State
Bank of India, Madame Cama Road, Nariman Point, Mumbai – 400 021 Ř
Citibank
N.A., Kanak Building, 41, Chowringhee Road, Kolkata – 700 071, West Bengal Ř American Express Banking Corporation,
Bangalore, Karnataka |
||||||||||||||||||
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Facilities : |
|
|
|
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Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors
: |
N. M.
Raiji & Company Chartered Accountants |
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|
Subsidiaries
: |
Wipro Japan
KK Enthink
Inc. Wipro
Inc. Wipro
Chandrlka Limited Wipro
Trademarks Holding Limited Wipro
Travel Services Limited Wipro
Fluid Power Limited Wipro
HealthCare IT Limited Wipro BPO
Solutions Limited Wipro
Holdings (Mauritius) Limited Wipro
Holdings UK Limited Wipro
Technologies (UK) Limited Wipro
Shanghai Limited Wipro
Consumer Care Limited Cygnus
Nigri Investments Private Limited Wipro Infrastructure Engineering
Limited Spectramind Inc mPower software Services Inc. mPower Software Services (India) Private
Limited Mpact Technologies Services
Private Limited BVPENTE Beteiligungsverwaltung
GMBH New Logic Technologies AG New Logic Technologies Inc. New Logic Technologies SARL New Logic Technologies S.A. Wipro Equity Reward Trust |
|
|
|
|
Associates
: |
Wipro GE
Medical Systems Private Limited WeP
Peripherals Limited |
|
|
|
|
Membership
: |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1650000000 |
Equity Shares |
Rs. 2 each |
Rs.
3300.000 millions |
|
25000000 |
10.25% Redeemable Cumulative Preference Shares |
Rs.
10/- each |
Rs.
250.000 millions |
|
|
Total
|
|
Rs. 3550.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1425754267 |
Equity Shares |
Rs. 2
each |
Rs.
2851.510 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
SHAREHOLDERS FUNDS
|
|
|
|
|
1] Share Capital |
2851.510 |
1407.140 |
465.519 |
|
2] Share Application Money |
74.860 |
12.050 |
0.000 |
|
3] Reserves & Surplus |
61353.010 |
47517.290 |
34610.396 |
NET WORTH
|
64279.380 |
48936.480 |
35075.915 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
450.580 |
215.890 |
947.466 |
|
2] Unsecured Loans |
51.030 |
405.030 |
59.408 |
|
TOTAL
BORROWING |
501.610 |
620.920 |
1006.874 |
|
|
|
|
|
TOTAL
|
64780.990 |
49557.400 |
36082.789 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
11182.520 |
9079.610 |
6550.174 |
|
Capital work-in-progress |
6123.580 |
2502.390 |
1397.121 |
|
|
|
|
|
|
INVESTMENTS |
34592.030 |
28595.110 |
24560.332 |
|
Deferred Tax Assets |
381.380 |
318.560 |
315.533 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
1486.510 |
1273.740 |
1020.791 |
|
Sundry Debtors |
19680.670 |
14065.140 |
10623.367 |
|
Cash & Bank Balances |
8230.020 |
5368.960 |
2900.940 |
|
Loans & Advances |
10988.170 |
5975.190 |
5523.442 |
|
Total Current Assets |
40385.370 |
26683.030 |
20068.540 |
|
Less : |
|
|
|
|
Current Liabilities |
17768.340 |
12084.350 |
8563.202 |
Provisions
|
10115.550 |
5236.950 |
8245.709 |
Total Current Liabilities
|
27883.890 |
17321.300 |
16808.911 |
|
Net Current Assets |
12501.480 |
9061.730 |
3259.629 |
|
|
|
|
|
|
Miscellaneous Expenditure |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
TOTAL
|
64780.990 |
49557.400 |
36082.789 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
103795.260 |
73266.950 |
52596.727 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
23404.300 |
17570.230 |
10822.668 |
Provision for Taxation
|
3199.500 |
2622.020 |
1673.868 |
Profit/(Loss) After Tax
|
20204.800 |
14948.210 |
9148.800 |
|
|
|
|
|
Export Value
|
70832.940 |
53736.900 |
40.878 |
|
|
|
|
|
Import Value
|
3863.830 |
3237.350 |
2707.311 |
|
|
|
|
|
Total Expenditure
|
80390.960 |
55696.720 |
41774.059 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
31.12.2006 [3rd Qtr.] |
|
Sales Turnover |
30016.000 |
33211.000 |
35693.000 |
|
Other Income |
503.000 |
542.000 |
818.000 |
|
Total Income |
30519.000 |
33753.000 |
36511.000 |
|
Total Expenditure |
22536.000 |
25269.000 |
27250.000 |
|
Operating Profit |
7983.000 |
8484.000 |
9261.000 |
|
Interest |
1.000 |
26.000 |
29.000 |
|
Gross Profit |
7982.000 |
8458.000 |
9232.000 |
|
Depreciation |
811.000 |
888.000 |
925.000 |
|
Tax |
980.000 |
918.000 |
918.000 |
|
Reported PAT |
6191.000 |
6652.000 |
7389.000 |
Notes:
2006-06 Quarter 1
Expenditure Includes Cost of Sales / Services -
Consumption of Raw Materials* Rs 3510.00 million - Other expenditure Rs 15710.00
million Selling & Marketing Expenses Rs 1957.00 million General &
Administrative expenses Rs 1359.00 million Details of Expenditure Items
exceeding 10% of total expenditure Staff Cost Rs 12769.00 million * Includes
Increase/(Decrease) in finished and processed stocks Rs (126.00) million EPS is
Basic Status of Investor Complaints for the quarter ended June 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 133 Complaints disposed off during the quarter 133
Complaints unresolved at the end of the quarter Nil 1. The above audited
financial results were approved by the Board of Directors of the Company at its
meeting held on July 19, 2006. 2. Effective April 01, 2006, the Company through
its subsidiaries acquired 100% equity of cMango Inc and subsidiaries (cMango).
cMango is a provider of Business Service Management (BSM) solutions. The
consideration includes cash payment of Rs 884 Million and an earn-out of USD 12
Million to be determined and paid in the future based on specific financial
metrics being achieved over a two year period. 3. Effective June 01, 2006, the
Company through its subsidiaries acquired 100% equity of RetailBox BV and
subsidiaries (Enabler). Enabler is in the business of providing comprehensive
IT solutions and services. The consideration includes cash payment of Rs 2,425
Million and an earn-out of Euro 11 Million to be determined and paid in the
future based on specific financial metrics being achieved over a two year
period. 4. On June 29, 2006, the Company through its subsidiaries acquired 100%
equity of Saraware Oy (Saraware) for an aggregate consideration of Rs 975
Million. Saraware provides design and engineering services to telecom
companies. In addition, the Company would pay an earn-out of Euro 7 Million to
be determined based on financial targets being achieved over a period of 18
months. 5. The Company has been granting restricted stock units (RSUs) since
October 2004. The RSUs generally vest equally at annual intervals over a five
year period. The stock compensation cost is computed under the intrinsic value
method and amortized on a straight line basis over the total vesting period of
five years. As permitted by generally accepted accounting principles in the
United States (US GAAP), the Company applies a similar straight line
amortization method for financial reporting under US GAAP. The Company has been
advised by external counsel that the straight line amortization complies with
SEBI guidelines. However, an alternative interpretation could result in
amortization of the cost on an accelerated basis. Under this approach, the
amortization in the initial years would be higher with a lower charge in
subsequent periods (though the overall charge over the full vesting period will
remain the same). If the Company were to amortize the cost on an accelerated
basis, profit before tax and profit after tax for the quarter ended June 30,
2006 would have been lower by Rs 28 Million & Rs 24 Million respectively.
Similarly, the profits before tax and profit after tax for the quarter ended
June 30, 2005 and year ended March 31, 2006 would have been lower by Rs 213
Million & Rs 197 Million and Rs 490 Million & Rs 449 Million
respectively. This would effectively increase the profit before and after tax
in later years by similar amounts.
2006-09 Quarter 2
Expenditure Includes Cost of Sales / Services -
Consumption of Raw Materials* Rs 4201.00 million - Other expenditure Rs
17364.00 million Selling & Marketing Expenses Rs 2035.00 million General
& Administrative expenses Rs 1669.00 million Details of Expenditure Items
exceeding 10% of total expenditure Staff Cost Rs 14234.00 million *Includes
Increase/(Decrease) in finished and processed stocks Rs (100.00) million EPS is
Basic Status of Investor Complaints for the quarter ended September 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 357 Complaints disposed off during the quarter 357
Complaints unresolved at the end of the quarter Nil 1. The above audited
financial results were approved by the Board of Directors of the Company at its
meeting held on October 18, 2006. 2. Effective April 01, 2006, the Company
through its subsidiaries acquired 100% equity of cMango Inc and subsidiaries
(cMango). cMango is a provider of Business Service Management (BSM) solutions.
The consideration includes cash payment of Rs 884 Million and an earn-out of
USD 12 Million to be determined and paid in the future based on specific
financial metrics being achieved over a two year period. 3. Effective June 01,
2006, the Company through its subsidiaries acquired 100% equity of RetailBox BV
and subsidiaries (Enabler). Enabler is in the business of providing
comprehensive IT solutions and services. The consideration includes cash
payment of Rs 2,442 Million and an earn-out of Euro 11 Million to be determined
and paid in the future based on specific financial metrics being achieved over
a two year period. 4. On June 29, 2006, the Company acquired 100% equity of
Saraware Oy (Saraware). Saraware provides design and engineering services to
telecom Companies. The consideration includes cash payment of Rs 947 million
and an earn-out of Euro 7 Million to be determined based on financial targets
being achieved over a period of 18 months. In addition, the purchase price
payable to the sellers includes an amount payable equivalent to the amount
collected against certain specific reward / incentives estimated to be
receivable as on the acquisition date. 5. In July 2006, the Company acquired
100% equity of Quantech Global Services LLC and Quantech Global Services Ltd
(Quantech). Quantech provides Computer Aided Design and Engineering services.
The consideration includes upfront cash payment of Rs 142 Million, a deferred
cash payment of USD 3 Million and an earn-out to be determined and paid in the
future based on financial targets being achieved over a period of 36 months. 6.
In December 2005, the Company through its subsidiaries acquired 100% equity of
BVPENTE Beteiligungsverwaltung GmbH and its subsidiaries (New Logic) for an
aggregate consideration of Rs 1,156.54 Million and earn-out of Euro 26 Million
to be determined and paid in future on financial targets being achieved over a
3 year period. The consideration paid was subject to certain working capital
adjustments. In the period ended September 30, 2006, the Company has completed
the working capital adjustments and paid an additional consideration of Rs
68.76 Million, which has resulted in additional goodwill. 7. The Company has
been granting restricted stock units (RSUs) since October 2004. The RSUs
generally vest equally at annual intervals over a five year period. The stock
compensation cost is computed under the intrinsic value method and amortized on
a straight line basis over the total vesting period of five years. As permitted
by generally accepted accounting principles in the United States (US GAAP), the
Company applies a similar straight line amortization method for financial
reporting under US GAAP. The Company has been advised by external counsel that
the straight line amortization complies with SEBI guidelines. However, an
alternative interpretation could result in amortization of the cost on an
accelerated basis. Under this approach, the amortization in the initial years
would be higher with a lower charge in subsequent periods (though the overall
charge over the full vesting period will remain the same). If the Company were
to amortize the cost on an accelerated basis, profit before tax and profit
after tax for the quarter ended September 30, 2006 would have been lower by Rs
18 Million & Rs 15 Million respectively and the profit before tax and
profit after tax for the six months ended September 30, 2006 would have been
lower by Rs 45 Million & Rs 39 Million respectively. Similarly, the profits
before tax and profit after tax for the quarter ended September 30, 2005 would
have been lower by Rs 206 Million & Rs 191 Million respectively and the
profit before tax and profit after tax for the six months ended September 30,
2005 would have been lower by Rs 419 Million & Rs 388 Million respectively.
Profit before tax and profit after tax for the year ended March 31, 2006 would
have been lower by Rs 490 million and Rs 449 million respectively. This would
effectively increase the profit before and after tax in later years by similar
amounts. In July 2005, the Company established Wipro Restricted Stock Unit Plan
(WRSUP 2005). The Company is authorized to issue up to 12,000,000 Restricted
Stock Units (RSUs) under the plan to eligible employees. In July 2006, the
Company granted 2,482,560 RSUs under WRSUP 2004 and 918,130 options under
WARSUP 2004. The Company also granted 3,556,466 options under WRSUP 2005. For
the quarter ended September 30, 2006 the Company recorded stock compensation
expense of Rs. 448 Million in respect of these grants.
2006-12 Quarter 3
Expenditure Includes Cost of Sales / Services -
Consumption of Raw Materials* Rs 5231.00 million - Other expenditure Rs
18136.00 million Selling & Marketing Expenses Rs 2062.00 million General
& Administrative expenses Rs 1821.00 million EPS is Basic Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 419
Complaints disposed off during the quarter 419 Complaints unresolved at the end
of the quarter Nil 1. The above audited financial results were approved by the
Board of Directors of the Company at its meeting held on January 17, 2007. 2.
Effective December 01, 2005, the Company through its subsidiaries acquired 100%
equity of mPower Software Services Inc. and its subsidiaries for an aggregate
cash consideration of Rs 1,275 Million. In the terms of the scheme of
amalgamation filed with and endorsed by the State of Delaware, USA, mPower
Software Services Inc amalgamated with the Company's subsidiary with effect
from April 2006. 3. In December 2005, the Company acquired 100% equity of
BVPENTE Beteiligungsverwaltung GmbH and its subsidiaries (New Logic) for an
aggregate consideration of Rs 1,156.54 Million and earn-out of Euro 26 Million
to be determined and paid in future on financial targets being achieved over a
3 year period. The consideration paid was subject to certain working capital
adjustments. In the period ended December 31, 2006, the Company completed the
working capital adjustments and paid an additional consideration of Rs 69
Million. 4. Effective April 01, 2006, the Company acquired 100% equity of
cMango Inc and subsidiaries (cMango). cMango is a provider of Business Service
Management (BSM) solutions. The consideration includes cash payment of Rs 884
Million and an earn-out of Rs 531 Million (USD 12 Million) to be determined and
paid in the future based on specific financial metrics being achieved over a
two year period. 5. Effective June 01, 2006, the Company acquired 100% equity
of RetailBox BV and subsidiaries (Enabler). Enabler is in the business of
providing comprehensive IT solutions and services. The consideration includes
cash payment of Rs 2,442 Million and an earn-out of Rs 642 Million (Euro 11
Million) to be determined and paid in the future based on specific financial
metrics being achieved over a two year period. 6. On June 29, 2006, the Company
acquired 100% equity of Saraware Oy (Saraware). Saraware provides design and
engineering services to telecom companies. The consideration includes cash
payment of Rs 947 Million and an earn-out of Rs 408 Million (Euro 7 Million) to
be determined based on financial targets being achieved over a period of 18
months. In addition, the purchase price payable to the sellers includes an
amount payable equivalent to the amount collected against certain specific
reward / incentives estimated to be receivable as on the acquisition date.
During the period ended December 31, 2006 the Company paid Rs 68 Million
towards earn out. 7. In July 2006, the Company acquired 100% equity of Quantech
Global Services LLC and Quantech Global Services Ltd (Quantech). Quantech
provides Computer Aided Design and Engineering services. The consideration
includes upfront cash payment of Rs 142 Million, a deferred cash payment of Rs
132 Million (USD 3.00 Million) and an earn-out to be determined and paid in the
future based on financial targets being achieved over a period of 36 months. 8.
In November 2006, the Company through its subsidiaries acquired 100% equity of
Hydrauto Group AB (Hydrauto). Hydrauto is engaged in the production, marketing
and development of customized hydraulic cylinders solution for mobile
applications such as mobile cranes, excavator, dumpers and trucks. The
consideration comprises upfront cash payment of Rs 1,365 Million and direct
cost of Rs 47 Million. This acquisition will give the Company an entry into
Europe, access to a customer base built over the past few decades and
complementary engineering skills. 9. In November 2006, the Company acquired
100% equity of the India, Middle East and SAARC operations of 3D Networks and
Planet PSG. 3D Networks, a platinum partner of Nortel Networks, provide
business communication solutions that include consulting, voice, data and
converged solutions, and managed services. 3D Networks' specialized solutions
are deployed in ITES/IT, Telecom, Banking and Finance, Government and Service
verticals. Planet PSG is the sole GlobalNortel Technical Services partner on
Periphonics platform in APAC region and provides professional services on voice
and speech platforms in the region. The consideration includes upfront cash
payment of Rs 908 Million (USD 20 Million) and an earn-out to be determined and
paid in the future based on financial targets being achieved over a period of
24 months. The maximum amount of earn out payable under the agreement is USD
43.78 Million. This acquisition is a strategic fit as it complements Wipro's
existing practice capabilities and differentiates Wipro as the most
comprehensive IT Solutions provider across verticals. 10. In August 2006, the
Company entered into a venture with Motorola Inc. to address the managed
services requirement of public and private network customers. WM NetServ Ltd, a
company in which Wipro holds 81.1% shares will deliver public and private
network customers with managed services focused on planning, deployment,
optimization, security, operations and support services. 11. In December 2006,
the Company sold 4 million shares in WeP Peripherals at a price of Rs 40 per
share. Post this sale, the Company's holding in WeP Peripherals is reduced to
15%. The Company has recorded a gain of Rs 106 Million on the sale of these
shares. The carrying amount of the remaining shares in WeP Peripherals is
classified under long term investments. As a part of the sale transaction, the
Company has also acquired a put option to sell the balance shares at Rs 40 per
share at any time during January 2008 to December 2009. 12. The Company has
been granting restricted stock units (RSUs) since October 2004. The RSUs
generally vest equally at annual intervals over a five year period. The stock
compensation cost is computed under the intrinsic value method and amortized on
a straight line basis over the total vesting period of five years. As permitted
by generally accepted accounting principles in the United States (US GAAP), the
Company applies a similar straight line amortization method for financial
reporting under US GAAP. The company has been advised by external counsel that
the straight line amortization complies with SEBI guidelines. However, an
alternative interpretation could result in amortization of the cost on an
accelerated basis. Under this approach, the amortization in the initial years
would be higher with a lower charge in subsequent periods (though the overall
charge over the full vesting period will remain the same). If the Company were
to amortize the cost on an accelerated basis, profit before tax and profit
after tax for the quarter ended December 31, 2006 would have been higher by Rs
47 Million & Rs 40 Million respectively and the profit before tax and
profit after tax for the nine months ended December 31, 2006 would have been
higher by Rs 1 Million respectively. Similarly, the profits before tax and
profit after tax for the quarter ended December 31, 2005 would have been lower
by Rs 43 Million & Rs 37 Million respectively and the profit before tax and
profit after tax for the nine months ended December 31, 2005 would have been
lower by Rs 462 Million & Rs 425 Million respectively. Profit before tax
and profit after tax for the year ended March 31, 2006 would have been lower by
Rs 490 Million and Rs 449 Million respectively. In July 2005, the Company
established Wipro Restricted Stock Unit Plan (WRSUP 2005). The Company is
authorized to issue up to 12,000,000 Restricted Stock Units (RSUs) under the
plan to eligible employees. In July 2006, the Company granted 2,482,560 RSUs under
WRSUP 2004 and 918,130 options under WARSUP 2004. The Company also granted
3,556,466 options under WRSUP 2005. For the quarter ended December 31, 2006 the
Company recorded stock compensation expense of Rs 440 Million.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.01 |
0.02 |
0.02 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.01 |
0.00 |
|
Current Ratio |
1.46 |
1.33 |
1.60 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
4.97 |
4.70 |
4.16 |
|
Inventory |
74.37 |
63.42 |
57.82 |
|
Debtors |
6.12 |
5.90 |
5.60 |
|
Interest Cover Ratio |
748.50 |
316.29 |
308.37 |
|
Operating Profit Margin(%) |
25.67 |
26.77 |
23.84 |
|
Profit Before Interest And Tax Margin(%) |
22.83 |
24.21 |
20.92 |
|
Cash Profit Margin(%) |
22.53 |
23.10 |
20.56 |
|
Adjusted Net Profit Margin(%) |
19.68 |
20.54 |
17.63 |
|
Return On Capital Employed(%) |
41.01 |
41.15 |
30.98 |
|
Return On Net Worth(%) |
35.72 |
35.59 |
26.76 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.624.45/- |
|
Low |
Rs.617.00/- |
LOCAL AGENCY FURTHER INFORMATION
Wipro is one of the leading players in providing
IT services & Products business globally. Wipro though started as a edible oil
producer way back in 1945, under the name Western India Vegetable Products, a
private limited company has transformed itself into leading player in FMCG and
IT services & Products business. It's FMCG business (or Wipro Consumer care
and Lighting) with strong brands in baby care, toilet soaps, personal wash,
personal grooming, domestic and industrial lighting has significant presence in
domestic market. The company also have presence in manufacture of hydraulic
cylinders and medical equipments through its subsidiary i.e. Wipro Fluid Power
and JV affiliate Wipro GE Medical Systems Private respectively.
Wipro provide comprehensive range of IT services, software solutions, IT
consulting, business process outsourcing and research and development services
in the areas of hardware and software design to leading companies worldwide.
This was done by combining the business/industry knowledge of domain
specialists and technical knowledge and implementation skills of delivery team
in its development centres located both in Indian and around the world. The
range of services includes IT consulting; custom application design,
development, re-engineering and maintenance, systems integration, package
implementation.
Wipro's BPO, which operated as a separate subsidiary earlier was consolidated
into Global IT services products division. The BPO provides Customer
Interaction Services, Industry Administration Services, Business Optimization
Services and Knowledge Services. The company also does Product Designing in Hardware,
System Software Development and Support services for industries like Automotive
Electronics, Computing Peripherals, Computing Platforms & Software
products, Consumer Electronics, Industrial Automation & Avionics, Medical
Devices, Mobile Devices & Application, semiconductors, Wireless Networks,
Space Communications and much more. The Company is the largest third party
R&D Service provider in the world with world's largest technology
infrastructure management practices and are among the top 3 offshore BPO
service providers by revenue.
Wipro has set up an overseas design center, Odyssey 21 for undertaking projects
and product developments in advanced technologies for overseas clients. Aviva
Plc has selected Wipro Technologies as a strategic partner for Offshore IT
Outsourcing. Under the agreement, Wipro will provide a range of IT services
covering Application Development and maintenance, Package implementation and
testing. The company launched its German operations based out of Frankfurt
which will address the requirements of the enterprise for business applications
as well as R & D outsourcing requirements of technology companies.
The company has chalked out plans to expand its operations in Tamil Nadu. The
company has set up a Campus Style facility at Sholinganallur, near Chennai as
part of Phase II expansion of the Campus Development Centre.
The company has invested in building ability in Wireless Domain like Global
Standards for Mobile (GSM), Code Device Multiple Access (CDMA) and General
Packet Radio Service (GRPS) and also in GigE Mac Core, Ethernet software
solution and Residential Gateway solutions for Customer Premise
Equipment.
The FMCG business of Wipro consist of products including hydrogenated cooking
oil, soaps and toiletries, light bulbs and fluorescent tubes and lighting
accessories. The umbrella brand of the company are 'Santoor', Wipro Active line
of talcum powers, Wipro Baby Soft line of infant and child care products and
Wipro Sanjeevani line of wellness products. The brand portfolio and market
share was strengthened/expanded by acquisition of Chandrika Ayurvedic soap and
Glucovita Glucose Powder during 2004-05. The company has also launched Wipro
Sanjeevani Honey, Wipro Sanjeevani Isabgol and Wipro Safewash liquid
detergents. The capacity of Toilet Soaps was expanded by 19930 TPA to 47,930
TPA, in Mar'05. The Company has also installed CFL during '04-'05 which stood
as 6658000 Nos in March 2005.
Wipro Lighting is a major diversification of Wipro, manufacturing and marketing
lighting products for households and the commercial and Industrial markets.
Wipro has set up a wholly owned subsidiary company viz. Wipro Consumer Care
Limited. This company will be engaged in the manufacture of consumer care and
lighting products.
The business restructuring exercises of the company to derive business synergy
has resulted in birth of Wipro e-Peripherals, Wipro Fluid Power, two of its
subsidiaries. In this context Wipro Infotech and Wipro Systems were amalgamated
with Wipro in April, 1994 and Wipro Infotech spun off its peripherals services
division into a new legal entity i.e. Wipro e-Peripherals on Sep 2000. Wipro
Net has been amalgamated with the company with effect from April 1, 2001, which
will enable it to synergize the customer offerings under one management and
enable it to offer the specialized telecom skills available within both the
companies.
Continuing that the company spin-off of its Fluid Power business unit into a
separate subsidiary company effective March 1, 2002. Netkracker, which was a
subsidiary of Wipro subsequent to acquisition of equity interest of ICICI and
the Fluid Power business was combined and renamed as Wipro Fluid Power
Limited.
Five of Wipro's manufacturing and development facilities secured the ISO 9001 certification
during 1994-95. In February 2001, Wipro became the first software technology
and services company in India to be certified for ISO 14001 certification for
complying with the international standards for Environmental Management System
(EMS) in three major software development and technology centers in Bangalore.
The company has strong software engineering processes & also achieved ISO
9000 certification. Wipro is the first software company to get SEI Level 5
& also implemented Six Sigma TQM practices to software projects and support
functions which represents a quality standard of less than 3.4 defects per
million opportunities were a defect may arise. Wipro Technologies has won the
'Banker Technology Award' for the year 2004 Instituted by the Financial Times
in the 'Risk Management Award' category. The company has been selected for the
award for its project for JP Morgan Chase to create an operating risk
management system.
In the fiscal 2004-05 the company has issued Bonus Shares in the ratio of 2:1
to its shareholders.
During December 2005, the company has signed a definitive
agreement to acquire mPower Inc., a US based company with a development centre
in Chennai and MPACT Technology Services, which is based in Chennai.
In 2006, The Honorable High Court of Karnataka has approved the Scheme of
Amalgamation for the merger of the Spectramind Limited, Bermuda, Spectramind
Limited, Mauritius, & Wipro BPO Solutions Limited with the Company on April
05, 2006.
The company has issued bonus Shares in the ratio of 1:1 to its
shareholders.
The company has acquired mPower Software Services Inc, a Princeton, New Jersey,
US headquartered company with development Center in Chennai and MPACT
Technology services Private Limited, based in Chennai, for an all cash
Consideration of $28 million and New Logic Technologies AG, an Austrian Firm
was acquired an all cash consideration of Euro 26 Million.
The company has signed agreement in the current financial year to effectively
acquire the target company cMango Inc., a US based Technology Infrastructure
consulting firm in an all cash deal. The acquisition is effective in the next
financial year 2006-2007.
Schemes of Amalgamation
The
Schemes of Amalgamation of Wipro BPO Solutions Limited (formerly Wipro
Spectramind Services Limited), Spectramind Limited, Bermuda, Spectramind
Limited, Mauritius with Wipro Limited have been approved by the Hon'ble High
Court of Kamataka on April 5, 2006. The erstwhile Wipro BPO Solutions Limited,
Spectramind Limited, Bermuda and Spectramind Limited, Mauritius stands merged
with Wipro Limited with the effect from April 1, 2005 being the appointed date.
The Annual Report of Wipro Limited for the year 2005-06, has been prepared
after giving effect to the amalgamations. The orders of the High Court have
been filed with the Registrar of Companies, Bangalore on April 29, 2006.
PERFORMANCE OF THE COMPANY
Sales of
the Company for the year ended March 31, 2006, were Rs. 102641 millions, up by
41% and Profit after Tax before extraordinary items was Rs. 20205 millions an
increase by 35% over the previous year. Over the last 10 years, the Sales have
grown at an average annual rate of 23% and Profit after Tax at 46%. The
Company's earnings in Foreign Exchange stood at Rs. 70833 millions and have
registered a growth of 32% compared to the previous year.
Increase in Share
Capital
During
the year, they issued 16290171 equity shares pursuant to exercise of stock
options by eligible employees under Employee Stock Option Plans and 705893574 equity
shares as Bonus shares, aggregating to 722183745 equity shares. Due to these
Corporate Actions, the issued, subscribed and paid-up equity share capital
increased from 703570522 (March 31, 2005) to 1425754267 equity shares as of
March 31, 2006.
Fixed Assets :
Ř
Land
Ř
Buildings
Ř
Railway siding
Ř
Plant & Machinery
Ř
Furniture, Fixture and Equipments
Ř
Vehicles
Ř
Technical Know-how
Ř
Patents, Trademarks & Rights
It also has
a joint venture with British Telecom for providing value-added network and VSAT
services.
The company
has been accredited with ISO 9001 and ISO 14001 Certification.
Wipro
Consumer Care & Lighting
Wipro Consumer Care and Lighting, (WCCLtg) a Business Unit
of Wipro Limited, has a profitable presence in the branded retail market of
toilet soaps, hair care soaps, baby care products and lighting products. It is
also a leader in institutional lighting in specified segments like software,
pharma and retail. Wipro Consumer Care has been one of the
fastest growing FMCG companies as reflected by the organizational performance
in the last three years. They have grown both organically and through
acquisitions.
With revenues crossing the
Rs.6000 Mn mark in 2005-06, the
company’s organic growth strategies are
clearly working. Also the acquisitions
like Glucovita and Chandrika the company
has signalled its’ intent to be a
bigger and more aggressive player in
FMCG. While Chandrika has helped
strengthen presence in ethnic ingredient
based soaps, Glucovita has marked the
company’s entry into the “Well Being”
category. One of the most recent acquisition being NorthWest Switches.
WCCLG’s acquisition strategy is
to identify under-marketed brands, on which
the company can leverage existing strengths
in marketing or distribution.
WCCLG’s other brands include
flagship “Santoor” toilet soaps, talcs, face
wash and fairness cream, Wipro Baby
Soft, Wipro Shikakai, Wipro Safewash among
others. Wipro has also entered the Honey and Isabgol Category under the Brand
name Sanjeevani.
History
and Milestones
Wipro Consumer Care and Lighting
(WCCLG) is the mother division of Wipro Limited with its roots going back to
1945 when Western India Vegetable Products was incorporated as a Private
Limited company to manufacture edible oil.
Over the years, Wipro Consumer Care
and Lighting has crossed various milestones
and metamorphosed from being a manufacturer of Hydrogenated Vegetable Oils to a
strong player in the FMCG space with robust brands addressing consumer needs in
various categories like Personal Wash, Fabric Wash, Toiletries, Personal
Grooming, Baby Care, Cooking Medium, Domestic and Industrial Lighting and
Energy drinks. WCCLG’s acquisition of the Chandrika in December 2003 has
heralded Wipro’s entry in the fast growing Natural Products market.
A focus on customer needs with
distinctive offerings, supported by a robust
distribution system, and innovation in
product and strategy have helped them successfully compete with
dominant market players in categories like soaps, lighting and baby skin care
with brands that make WCCLG;
No.1 in Haircare Soaps
No. 2 in Toilet Soaps in South and No. 4 All India
No. 2 in Baby Skin care products
No. 2 in General Lighting Systems (Bulbs)
No. 2 in the Ayurvedic soap segment.
No. 2 in Cosmetic Talcum Powder
They live in exciting times. With
change as the only constant. And consistent growth – as the only means to
create value for all stakeholders.
WCCLG has always been known for its
strengths in;
Manufacturing efficiencies comparable to the Global
Best-In-Class.
Use of Six-Sigma tools to constantly understand and improve
business processes.
Pan Indian Sales and Distribution Infrastructure – among the
top 5 in India.
Strong business and managerial practices.
Strong brands with exceptional value propositions.
The task ahead is to build on these strengths to create a future proof
organization with a DNA wired for aggressive growth through consumer intimacy.
The WCCLG vision for the future is
to be;
Among the top 10 FMCG companies in India
An Employer of choice for the best talent in all functional
fields.
WCCLG has a commitment to creating Business Managers who are capable
of understanding the business in its entirety and driving it to the next level
; people who understand the consumer psyche, anticipate need gaps and create
products to fill these gaps before anybody else. People who can unlearn as fast
as they learn and adapt to new business paradigms without losing momentum.
People who have fun while doing all of the above.
Because –
they firmly believe- the journey is as important as the
destination.
At the heart of each of their brands and strategies are key
consumer insights. An extensive use of market research helps them understand
the changes taking place in the lives of their consumers and how their needs
are evolving. Proprietary research methodologies help them develop innovative
offerings and products to meet these changing needs and therefore deliver
satisfaction.
Lighting
At the heart of each of their brands and strategies are key consumer insights.
An extensive use of market research helps them understand the changes taking
place in the lives of their consumers and how their needs are evolving.
Proprietary research methodologies help them develop innovative offerings and
products to meet these changing needs and therefore deliver satisfaction.
Furniture
At Wipro
Furniture they
understand that the world around them is changing and we are moving towards a
world exploding with ideas…..a world that is youthful……..a world more zestful
and vibrant……..a world with changing offices………offices that are more
positive……..offices that are cheerful and optimistic……….offices that inspire
and motivate.
“Quality, like integrity, is not negotiable”. These were the
words of Mr. Azim Premji when Wipro launched the Six Sigma initiatives in Dec
1996. It re-iterated the ruthless and uncompromising approach that the
organization follows towards quality.
The Quality initiative in WCCLG and Lighting comes under an umbrella called
“Mission Quality”. The word “Mission” is consciously introduced and repeatedly
stressed upon, to communicate the missionary zeal that was required to achieve
a paradigm shift in their approach to quality. The philosophy was to make
quality everybody’s business – not just in products but in every aspect of
work.
In WCCLG, customer centric Quality is embedded at all manufacturing and
distribution facilities. At the operational level, building in a culture of
Quality consciousness is realized through ISO certification for processes and
product certification for critical products.
To remain competitive in a globalized economy it was necessary to work towards
becoming a world-class organization. This was the genesis of the Six sigma
initiative under the Mission Quality umbrella. Top performers from the business
were handpicked and trained for the black belt role thereby laying the
foundation for a transformed gene pool for future leaders. Today, the practice
has evolved to a level where they are providing consultancy on Six Sigma to
other major corporates in the country!
Six Sigma - Initiatives in WCCLG
Six sigma is a project-based initiative. Through this initiative they work
towards “consistently meeting customer requirements” and “maximizing resource
utilization”. Projects are taken up to address all critical business processes
like Manufacturing, Product design, Product quality, Cost reduction, Customer
satisfaction and Employee satisfaction. The success of these projects, gauged
by real savings in cost and time has only strengthened their resolve to bring
even more focus and rigour to six sigma in their businesses.
Different methodologies are used depending upon the project objectives. The
methodologies themselves were retooled and continually improved to keep pace
with changing business requirement.
What makes this initiative so successful is the fact that there is a close
alignment between Six sigma and WCCLG Vision, Objectives and Critical business
processes – so much so that a leader cannot achieve his business objectives
without meeting six sigma goals.
Institutionalization of best practices flowing out of six sigma projects is
done through the ISO frame work and sharing of best practices is done through
the corporate quality council.
What started out as a one-black-belt-four-project initiative way back in 1997
has now grown to about 150 projects per year with twenty black belts. Over 400
projects have been done till date resulting in annual savings exceeding Rs. 50
mn.
They are now in the process of infusing further rigor into decision making
processes by embedding statistical tools available in the six sigma basket to
strengthen the very fabric of the business.
News
Wipro appoints P R Chandrasekhar as Chief
Executive – Americas & Europe
Bangalore, July 24, 2005
Wipro Limited (NYSE: WIT) today
announced the appointment of P R “Sekar” Chandrasekhar as the Chief Executive
of Americas and Europe. Sekar has been leading the European Operations for
Wipro.
Under his leadership Wipro’s
European operations have consistently grown ahead of the industry, driven by
wins in a number of key deals, deepening of client engagements and expansion of
service lines, including addition of a strategic consulting unit.
In his earlier roles in Wipro, Sekar
has been responsible for Global M&A, Channel Development and the Global
.Net Business. He led Wipro’s initiatives in M&A which have bolstered
Wipro’s position as a leading Global IT services and BPO provider. He has also
had a successful stint in Wipro GE Medical Systems in Sales. Prior to joining
Wipro, Sekar was responsible for M&A for GE India.
Rich Garnick, Head of Wipro’s
America Sales has resigned after four years at Wipro. Rich has contributed to
institutionalizing the sales processes in North America, and in making Wipro a
market leader across services lines.
Commenting on this change, Mr. Azim
Premji, Chairman, Wipro Limited said, “Sekar brings in a wealth of experience,
having worked in multiple strategic and sales roles. His ability to create a
win-win with customers is further enhanced by his deep prior experience in the
Americas and Europe. Increasingly, they find that their clients work with them
across multiple geographies and having a common head for Europe and the
Americas will align them better with this trend.” He added, “Rich has
contributed to building their sales engine in North America. They wish him
success in his future endeavors.”
Reflecting on his tenure at Wipro,
Rich Garnick said, “Wipro has grown tremendously in its ability to engage and
add value to customers, and it has been exciting to have been part of this
transformation. Given this phenomenal growth and the associated travel, I have
not been able to spend enough time with my family and there comes a time when
you need to focus on the family and that is the key driver of my decision to
leave Wipro. I am sure that the sales organization they have built will
continue to make significant progress, under the leadership of Sekar.”
Commenting on his new role, P R
Chandrasekar said, “North America is their largest market and I am very excited
by the opportunity to grow their business there. They have a great team in
place and I am confident that given their renewed focus on furthering the depth
of their services lines and increased investments in sales and marketing, they
will be able to drive market leadership.”
Rich will work with Sekar to
facilitate a smooth transition. Sekar will be relocating to the US, while
working very closely with the strong team that he leads in Europe.
About Wipro
Wipro Limited is the first PCMM Level 5 and SEI CMM Level
certified IT Services Company globally. Wipro provides comprehensive IT
solutions and services, including systems integration, Information Systems
outsourcing, package implementation, software application development and
maintenance, and research and development services to corporations globally. In
the Indian market, Wipro is a leader in providing IT solutions and services for
the corporate segment in India offering system integration, network
integration, software solutions and IT services. Wipro also has profitable
presence in niche market segments of consumer products and lighting. In the
Asia Pacific and Middle East markets, Wipro provides IT solutions and services
for global corporations.
Wipro's ADSs are listed on the New
York Stock Exchange, and its equity shares are listed in India on the Stock
exchange - Mumbai, and the National Stock Exchange, among others.
Wipro’s complete
range of IT Services addresses the needs of both technology and business
requirements to help organizations leverage leading-edge technologies for
business improvement. 
Wipro takes charge of the IT needs of the entire
enterprise. The gamut of services extends from Enterprise Application Services
(CRM, ERP, e-Procurement and SCM), to e-Business solutions. Wipro’s enterprise
solutions have served and continue to serve clients from a range of industries
including Energy and Utilities, Finance, Telecom, and Media and Entertainment.
A Cycle of Define,
Perform, Review and Refine
The client is the world’s third largest
water company, and provides clean and waste water services to over 69 million
customers around the world. The client had embarked on a journey to streamline
their IS operations to ensure better service delivery, improved customer
relationship and closer links with business. They also wanted to move to a
‘thin’ layer of IS. This was a challenge considering that the client consists
mostly of bespoke applications using a wide spectrum of technologies and
functional areas that cover all the business functionality of a typical water
utility.
Through a series of strategic initiatives
over a two year period, Wipro made the client realize significant cost savings
as well as remarkably improve the quality of the application estate. This was
done by following a cycle of define, perform, review and refine, for each of
the functions that Wipro was entrusted with. Wipro devised and implemented a
strategy for cost savings by leveraging on its Global Sourcing model. The
savings in the application support budget was also enabled through a system of
forecasting and reviewing service requirements with partners and third party
vendors.
They've developed a model called
"Extended Engineering” that leverages synergies across the value chain
As product manufacturers and platform vendors across the world strive to make
better products with shorter development cycles and reduced total cost of
ownership, they at Wipro Technologies partner with them to provide
comprehensive solutions in product lifecycle management and product
realization. At Wipro, they've developed a model called "Extended
Engineering" that allows you to leverage synergies across the
value chain and progress swiftly from concept to market. They are now the
world's largest contract R&D house for telecom, auto and electronics.
Industries served
Automotive
Electronics
Computing
Peripherals
Computing
Platforms and Software Products
Consumer
Electronics
Industrial
Automation and Avionics
Medical
Devices
Semiconductors
Storage
Technologies
Telecommunication Solutions
Broadband
Optical
Networks
Space
Communications
Voice and
Next-Generation Networks
Wireless
Networks and Devices
Wipro plugs R&D Service into
Innovation Networks
Wipro, the world’s largest third party R&D services
provider, has built a 10,000-strong Product Engineering Solutions (PES) group
that offers a complete range of R&D services — from product strategy to
hardware design to quality consulting — to clients that sell electronics-based
products. With more than 120 active clients in industries such as
semiconductor, automotive, platforms and peripherals, consumer electronics, and
medical devices, PES revenues have grown at 36% for the past three years.
R&D services now accounts for 36% of Wipro's total revenues. By putting its
extended engineering capabilities on play in global Innovation Networks, Wipro
is making R&D services the next battleground.
True value from technology requires an in-depth
understanding of business strategy.
Today’s businesses need partners who can talk about strategy
and technology in the same conversation. At Wipro, they believe true value from
technology requires an in-depth understanding of business strategy. Their
cross-industry consulting services help you craft a vision for the organization
and then provide a specific, practical business and technology framework that
will make that vision a reality. Their consulting competencies spread across
business, process, quality and technology consulting.
Refining Business Strategy
The client is an online financial services company that
aggregates capital from small size investments to access large size institutional-quality
private investments. The challenge was to build a private equity investment Net
Market and generate a significant volume of transactions while adhering to
complex and restrictive regulatory requirements and accommodating for
multi-national users.
Wipro built the private equity Net Market adhering to complex and restrictive
regulatory requirements administered by the SEC and NASD and accommodating
multi-national users. Wipro achieved this through refining business strategy,
creating a new Internet-based business model, building the technology backbone
for the Net Market and providing thought leadership, business strategy, deep
technology, and user experience skills.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey revealed
that the amount of compensation sought by the subject is fair and reasonable
and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.06 |
|
UK Pound |
1 |
Rs.86.34 |
|
Euro |
1 |
Rs.57.46 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP
CAPITAL |
1~10 |
9 |
|
OPERATING
SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT
LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |