Restructure time for Wipro

Wipro Limited has approved the spin-off of the Wipro Fluid Power business unit into a subsidiary company. It has announced the reaching of an agreement to purchase the equity interest in Netkracker Limited held by venture capital funds of ICICI Group for a total consideration of Rs 30 million and a contingency consideration, which is not expected to be material. Consequent to the purchase of equity interest, Netkracker becomes a subsidiary of Wipro Limited. The Fluid Power business unit and Netkracker will be combined and renamed as Wipro Fluid Power Limited. Azim Premji will be the company's Chairman while M Seethapathy Rao, the current President of the Wipro Fluid Power business unit, will be appointed its Managing Director. Wipro Fluid Power was the company's first diversification in 1975, to address the hydraulic equipment requirements of mobile original equipment manufacturers in India. Over the past 25 years, the Wipro Fluid Power business unit has become a leader in the Hydraulic Cylinders and Truck Tipping Systems markets in India. Wipro Fluid Power intends growing its business by leveraging its dominant market share in India to serve the global manufacturing requirements of Hydraulic Cylinders and Truck Tippers. Commenting on the restructuring Azim Premji, Chairman of Wipro Limited, said that being a separate entity will allow the Fluid Power business to pursue its growth opportunities more aggressively, including the option to seek strategic investors to partner in its growth. The company's commitment to provide quality products and management leadership to the current and prospective customers of Wipro Fluid Power, its employees and its business partners, remains unchanged. These restructurings will not result in a material change to Revenues and Operating Income in Wipro Limited's consolidated financial statements.