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Wipro Consumer Care and Lighting Acquires North-WestNEW DELHI, India --(Business Wire)-- May 5, 2006 -- Wipro Limited (NYSE:WIT), today announced that its Consumer Care and Lighting business division has acquired North-West Switches business from North-West Switchgear Limited, a Delhi based company in the business of switches, sockets, MCBs etc. in an all cash deal with an upfront consideration of Rs 1022 Million. Wipro has also entered into manufacturing agreement with them for a period of five years. Modular switches market is a fast growing segment with growth of 25% p.a. North-West Switchgear Limited is one of the pioneers in modular switch market in India. The company reported gross revenue of Rs 376 Million during the year 2005-06. North-West Switchgear was one of the first companies to enter into modular switches market. Their product range includes the innovative MCB "Tiny Trip", which is extensively used in household segment. Commenting on the transaction, Mr.Vineet Agrawal, President Wipro Consumer Care and Lighting said "This acquisition is in line with our strategy to enter into newer but related areas where Wipro's team can significantly enhance value. Electrical switches segment is absolutely synergistic to our current business mix of Domestic lighting, Commercial & Institutional lighting and newly started office modular furniture business. Our distribution reach both in lighting projects and in domestic business will help us to grow the brand. North-West is a very reputed brand name amongst customers and Architects. This brand has maintained its distinct imagery and position in this market and therefore gives us an ideal entry into this fast growing market segment". Commenting on the acquisition Mr. P.D.Agarwal, Managing Director North-West Switchgear Limited said, "We are very happy to be associated with Wipro. We are confident with this association North-West brand will scale new heights. We respect Wipro for its values and managerial ability. We have built North-West brand over the years on strong pillars of customer satisfaction and un-compromising quality. We are committed to good quality product reaching the hands of customers." "This acquisition is a significant milestone for us to expand our presence in electrical product segments. We are confident of generating higher value in the business through manufacturing expertise of North-West team and distribution footprint and sales/ marketing skills of Wipro Consumer Care and Lighting." said Mr.Nagender Arya, General Manager New Business Development Adding further on the acquisition Mr.Dilip Basole Vice President -- Commercial said "North-West has built a strong brand in switches in various customer segments. It has a large range of products. With the current infrastructure boom and growth in good quality housing, retail, hospitality segments we are confident to tap into all these high potential areas and have a quick ramp up". Wipro Consumer Care and Lighting business has reported revenues of Rs.6009m for the financial year 2005-06 clocking growth of 27% with healthy EBIT of 13%. It is into businesses of Consumer Care (with strong brands like Santoor), domestic lighting, Commercial and Institutional lighting and recently entered into Office Modular Furniture business. It has also acquired Chandrika and Glucovita brands in the last 3 years. About Wipro Limited We are the first PCMM Level 5 and SEI CMM Level 5 certified IT Services company globally. We provide 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, we are a leader in providing IT solutions and services for the corporate segment in India offering system integration, network integration, software solutions and IT services. In the Asia Pacific and Middle East markets, we provide IT solutions and services for global corporations. We also have a profitable presence in niche market segments of consumer products and lighting. Our ADSs are listed on the New York Stock Exchange, and our equity shares are listed in India on the Stock Exchange -- Mumbai, and the National Stock Exchange. For more information, please visit our websites at www.wipro.com and www.wipro.co.in Forward looking and cautionary statements Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings and revenue, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf. |
