Wipro’s reorganisation appears a long drawn process
Market analysts have given the move for the green signal, knowing that not only will it help the promoters bring down their shareholding in the company to the required levels (75%) but also aid minority shareholders. The demerger has the potential to finally cut the clutter from the whole soaps-to-software conglomerate definition and help investors look at the two diverse businesses separately.
TK Kurien, CEO of the company’s IT business, has said creating an IT-focused firm will allow it to accelerate the investments necessary to capitalise on market opportunities for growth. Indian IT has entered a very competitive phase now, with plans not going accordingly for many of the vendors. In the case of Wipro, it has been on a continuous restructuring mode ever since Kurien took over as the CEO. The plan has been to cut out excess flab and become a lean and mean organisation. This is something that Kurien has taken great interest in.
But Thursday’s move to hive off its non-IT business is probably Wipro’s biggest step in the last two years. The company has tried to create as less a noise about this as possible, at
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