Wipro, India's leading IT vendor, it seems have found a way to counter the Rupee appreciation threat to its bottomline. It is also aloof to all the noise around made by most others, in not rushing to the Ministry of Finance or RBI asking to rein in the surging Rupee. It maintains its cool and is moving straight ahead with its stated strategy of inorganic growth, by acquiring companies from diverse geographies.
I am talking about Wipro’s latest acquisition - Oki Techno Centre-Singapore (OTCS) in an all cash deal spread over a period of one year together with all its Intellectual Property Rights as well. The company will also establish a dedicated development centre for OKI to utilise design resource efficiently and enhance product development capabilities.
OTCS is focused on wireless design and has demonstrated innovative capabilities in RF (Radio Frequency) and baseband design. It has a 40 member center with SGD 8.8 M (USD 5.89 M) as the revenues of the fiscal year ended March 31, 2007. The company has key customers in Japan in product engineering space.
Way to go, Mr.Premji. The acquisition will give Wipro a footprint in the large market in Japan and East Asia. I go it’s way better than whining about exchange rates, something over which none has control.