Seizing more than just the day

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: When Azim Premji says that to be successful in business, you have to seize the day. it comes as no surprise to anyone who has been linked to the firm or closely followed the company’s fortunes.

That is also the reason that Wipro has gone on an acquisition binge. Or what Premji calls the “string of pearls” strategy to buy niche boutique firms to expand the New York Stock Exchange-listed company’s global foothold and also stay ahead of its competitors. The financial year 2006-07 has been no different for Wipro that has varied businesses from software and hardware to consumer care and lighting to infrastructure engineering services, as it acquired six companies—Quantech Global Services, LLC & group companies; Saraware Oy; Enabler Informatica SA & group companies; 3D Networks Pte Ltd; Hydrauto Engineering AB; and Northwest Switchgear—in all-cash deals. These investments, though margin dilutive in the near-term, have started yielding results for Wipro in the long-run, as it touched almost $3.5 billion in revenues (net sales of Rs 13,608.30 crore, a growth of 33.55%) in the fiscal 2007 and a gross profit of Rs 3,536 crore, an increase of 34.32%. The combined IT businesses crossed the $3-billion mark and the global IT business was $2.46 billion in revenues. “This year (2006-07) we invested significantly in business acquisitions. Six companies joined the Wipro team. In addition, we created two joint ventures. The intent behind all these investments is accelerating growth. Our sustained drive to invest strategically has been one of the key dimensions of our efforts to shape tomorrow,” says Premji in his letter to the stakeholders.