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Wipro - History, Products and Services, Financial Information

Updated on April 11, 2024 , 28998 views

Wipro is an Indian multinational company that deals in information technology (IT), consulting and business process services. Its headquarters is situated in Bangalore, Karnataka. It was founded in 1945 by Mohamad Premji. Azim Premji, one of India’s greatest entrepreneurs and philanthropist, owns the company today.

Wipro

Recognised as one of the top big firms, the company serves clients in 167 countries with expertise spanning cloud computing, cybersecurity digital transformation, artificial intelligence, robotics, IT consulting, custom application design, development, re-engineering, BPO services, cloud, mobility, analytics services, research and development and hardware and software design. In this post, let’s delve further into Wipro and find out essential information about this company.

Key Information About Wipro

Here are some crucial details about the company:

Particulars Description
Type Public
Industry Conglomerate
Founded 29 December 1945; 74 years ago
Headquarter Bangalore
CEO Thierry Delaporte
Founder Mohamed Premji
Area served Worldwide
Key people Rishad Premji (Chairman)
Products Personal care, Health care, Lighting Furniture Services
Digital strategy IT services Consulting Outsourcing Managed services
Revenue Rs. 63,862.60 crore (2020)
Operating Income Rs. 12,249.00 crore (2020)
Net income Rs. 9,722.30 crore (2020)
Total assets Rs. 81,278.90 crore (2020)
Total equity Rs. 55,321.70 crore (2020)
Owner Azim Premji (73.85%)

History of Wipro

Founded on 29 December 1945 in Amalner, India, by Mohamed Premji, the company began its journey. Following Mohamed Premji’s passing in 1966, his son Azim Premji took the role of chairperson of Wipro at just 21 years old. In the 1970s and 1980s, Wipro redirected its focus towards the growing opportunities in the IT and computing sector, which emerged in India. On 7 June 1977, the company underwent a name change from Western India Vegetable Products Limited to Wipro Products Limited. Subsequently, in 1982, the name transitioned once more to Wipro Limited. 1999 marked Wipro’s New York Stock Exchange listing, a significant milestone. By 2004, Wipro became the second Indian IT company to surpass US $1 billion in annual revenue.

In 2012, Wipro undertook the de-merger of its non-IT businesses, establishing a separate entity known as Wipro Entreprises. Before this restructuring, these diversified businesses, spanning consumer care, lighting, and diagnostics, contributed approximately 10% to Wipro’s total revenue. March 2023 marked the inauguration of Wipro’s American international headquarters at Tower Center in East Brunswick, Middlesex County, New Jersey, highlighting the company’s commitment to global growth.

Products and Services Offered by Wipro

It has garnered global recognition for its various services and has been serving clients across 6 continents across the globe. It also has a proud 180,00 employee base. It was featured in the Bloomberg’s Gender Equality Index in 2020 and has also received a score of 90/100 on the 2020 Corporate Equality Index. In 2019, it won the Global Breakthrough Partner of the Year from Pivotal Software and was also the winner for the Gender Inclusion category with NASSCOM Diversity and Inclusion Awards. It was also declared as one the best companies for Women in India in 2019 by Best Companies for Women in India (BCWI).

It was the first runner up for the United National Global Compact Network India (UN GCNI)- Women at Workplace Awards 2019 among others. Wipro Enterprises was founded in 2013 for non-IT services from Wipro. It has two main divisions as follows: Wipro Consumer Care and Lighting (WCCLG) and Wipro Infrastructure Engineering (WIN).

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1. Wipro Consumer Care and Lighting (WCCLG)

Wipro Consumer Care and Lighting has a strong presence in India also in the entire of South-East Asia and the Middle East. It has a global workforce of around 10,000 serving in 20 countries worldwide. It deals with Personal care products like soaps and toiletries along with baby care and Wellness Electrical wire devices with lighting and modular office furniture. Some of the countries it has established a strong brand presence is Bangladesh, China, Hong Kong, Jordan, Malaysia, Myanmar, Philippines, Saudi Arabia, Singapore, Taiwan, Thailand, UAE, United Kingdom, Vietnam, Nepal, Nigeria and Sri Lanka. Its sales revenue grew from Rs. 3.04 billion to Rs. 77.4 billion for the year 2019-2020.

2. Wipro Infrastructure Engineering (WIN)

Wipro Infrastructure Engineering is another successful undertaking of Wipro. It is involved in the Manufacturing and designing of custom Hydraulic Cylinders and infrastructure components related to construction, earthmoving, material, cargo handling, forestry, truck hydraulic, farm and agriculture, mining, aerospace and defence. Its facilities are spread across India, northern and eastern Europe, US, Brazil and China.

Financial Performance (Figures in ₹ Million except otherwise stated) 2014-15 2015-16 2016-17 2017-18 2018-19
Revenue1 473,182 516,307 554,179 546,359 589,060
Profit before Depreciation, Amortisation, Interest and Tax 108,246 111,825 116,986 105,418 119,384
Depreciation and Amortisation 12,823 14,965 23,107 21,124 19,474
Profit before Interest and Tax 95,423 96,860 93,879 84,294 99,910
Profit before Tax 111,683 114,933 110,356 102,474 115,415
Tax 24,624 25,366 25,213 22,390 25,242
Profit after Tax - attributable to equity holders 86,528 89,075 84,895 80,081 90,031
Earnings Per Share- Basic2 13.22 13.60 13.11 12.64 14.99
Earnings Per Share- Diluted2 13.18 13.57 13.07 12.62 14.95
Share Capital 4,937 4,941 4,861 9,048 12,068
Net worth 409,628 467,384 522,695 485,346 570,753
Gross cash (A) 251,048 303,293 344,740 294,019 379,245
Total Debt (B) 78,913 125,221 142,412 138,259 99,467
Net Cash (A-B) 172,135 178,072 202,328 155,760 279,778
Property, Plant and Equipment (C) 54,206 64,952 69,794 64,443 70,601
Intangible Assets (D) 7,931 15,841 15,922 18,113 13,762
Property, Plant and Equipment and Intangible Assets (C+D) 62,137 80,793 85,716 82,556 84,363
Goodwill 68,078 101,991 125,796 117,584 116,980
Net Current Assets 272,463 284,264 309,355 292,649 357,556
Capital Employed 488,538 592,605 665,107 623,605 670,220
Number of Shareholders3 213,588 227,369 241,154 269,694 330,075

Overall, the company offers the following services:

  • IT Services: Wipro’s IT services encompass digital transformation, cloud computing, cybersecurity, artificial intelligence and analytics, enterprise applications, infrastructure services, blockchain, and the Internet of Things (IoT).

  • Consumer Care and Lighting: Under this umbrella, Wipro serves consumer care products, health and wellness, lighting solutions, smart home automation, customised solutions, and sustainability initiatives.

  • Engineering: These services include product design and development, mechanical engineering, electrical and electronics engineering, software engineering, system engineering, quality assurance and testing, digital twin and IoT solutions, and industry-specific solutions.

  • Infrastructure Services: Herein, Wipro offers data centre services, cloud services, network services, end-user computing, IT Operations Management, security services, managed services, and digital workplace solutions.

  • Consulting Services: With this, the company offers strategy consulting, digital transformation, technology consulting, business process improvement, organisational change management, supply chain and operations consulting, risk and compliance consulting, and industry-specific consulting.

Revenue of Wipro

In the quarter ending September 30, 2023, Wipro’s revenue totalled US $2.710 billion, reflecting a 2.17% decrease compared to the same period in 2022. Over the 12 months leading up to September 30, 2023, Wipro’s revenue amounted to US $11.009 billion, marking a 1.83% rise Year-Over-Year. The annual revenue for Wipro in 2023 reached US $11.01 billion, indicating a 5.62% increase over the 2022 annual revenue.

Marketing Strategy of Wipro

The firm uses Marketing Mix tactics and various strategies to promote its brand and products. These methods are instrumental in achieving the company's objectives within its target Market. Let's delve deeper to gain insights into Wipro's marketing strategy.

Wipro’s Product Strategy

Wipro is widely recognised for delivering top-tier products and comprehensive solutions in the IT industry. As one of the largest conglomerates, it offers a diverse Range of products spanning various sectors, such as automobile, consumer goods, retail, professional services, and product engineering. The product lineup includes:

  • IT Services

    • Business Process: Product Engineering
    • Service Offerings: Consulting and Analytics
    • Applications: Infrastructure Service
    • Data: Cybersecurity & Mobility
  • IT Products

    • Hardware Products: Security, Networking, and Computing
    • Software Products: Database and Integration
  • Digital Services

    • Strategy: Organization Design, Digital Fitness
    • Customer Journey Engineering
    • Design: User Research, Experience, Product Design, Innovation Strategy, etc.

Wipro caters to various industries, including:

  • Retail
  • Oil and Gas
  • Healthcare
  • Medical Devices
  • insurance
  • Pharmaceutical & Life Sciences
  • Automobile Industry
  • Consumer Electronics, among others

Pricing Strategy of Wipro

Wipro's pricing strategy is extensive and varied, reflecting the diversity of its product offerings. It primarily caters to international and domestic large enterprises seeking IT services and solutions. Positioned as a provider of high-quality products and a wide array of services, Wipro adopts a competitive pricing approach influenced by various factors. This pricing strategy serves as a critical element of Wipro's marketing strategy, with the company often Offering prices below its competitors, thereby distinguishing itself in the market.

Place Strategy

Wipro's headquarters are in Bangalore, with operations extending to Maharashtra, serving as a gateway to its international market. Its FMCG-related products are readily accessible through a robust distribution network spanning retail stores, convenience stores, grocery outlets, and supermarkets, effectively reaching both urban and rural markets. The company strategically locates its offices predominantly in cities to ensure agile operations, facilitating seamless business transactions from around the globe.

Promotion Strategy

Promotion constitutes a vital component of Wipro's marketing strategy, with the company allocating substantial resources to promotional endeavours to maintain a competitive edge. Its promotional strategy encompasses various channels, including television, billboards, radio, magazines, and advertisements targeting consumer durable goods. Additionally, Wipro leverages social media platforms such as Twitter, Instagram, Facebook, and its website for extensive advertising. Furthermore, the company actively engages in various CSR initiatives to enhance brand visibility and foster a positive brand image.

Digital Marketing Strategy of Wipro

In today's digital era, establishing a strong online presence is imperative for shaping brand perception across social media platforms. This aspect holds significant importance within Wipro's marketing strategy.

  • Facebook: Wipro's Facebook page boasts a substantial following and active engagement, underscoring its influence within the online sphere.
  • LinkedIn: Wipro maintains a strong presence on LinkedIn, connecting with industry professionals, showcasing expertise, and fostering valuable B2B relationships.
  • Instagram: Wipro's Instagram account showcases captivating visuals, offering insights into the company's culture, innovation, and creative initiatives.
  • Twitter: With a dynamic Twitter profile, Wipro ensures its audience stays informed, engages in real-time conversations, and remains abreast of industry trends.

Listing and Shareholding

Wipro's equity shares are traded on the Bombay Stock Exchange, where it is included in the BSE Sensex index, and on the National Stock Exchange of India, where it is part of the Nifty 50. Additionally, the company's American Depositary Shares are listed on the New York Stock Exchange (NYSE) since October 2000. As of September 2023, the promoter group led by Azim Premji retained a 72.93% ownership stake in the company, with the remaining shares held by public shareholders and an employee trust.

What’s New with Wipro?

Here are some recent updates regarding Wipro:

  • Wipro has attained "Leader" status in the 2023 Gartner Magic Quadrant for Public Cloud IT Transformation Services.
  • Capco India, a subsidiary of Wipro, has introduced 'Garden Leave' policy for its employees.

Conclusion

Wipro stands out as a premier IT technology company, experiencing remarkable growth in recent years. With a steadfast commitment to its customers and employees, the company ensures the delivery of superior services and quality products. Furthermore, its extensive presence across various social media platforms contributes significantly to building robust brand awareness in the market. Wipro remains dedicated to continuous development and evolution. However, to maintain a competitive edge in the market, it must enhance its level of activity and innovation.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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