Sep 08
Azim Premji has acquired 10% stake in Subhiksha in a deal worth Rs. 230 crores. He is already having minority stakes in some other retailing companies like Koutons & Himatsingka. So, what’s cooking in Premji’s mind? Is he also interested in jumping into Retail band wagon?
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September 8th, 2008 at 3:24 pm
Rajeev,
Has wipro acquired this stake in subhiksha or Azim Premji?
September 8th, 2008 at 9:51 pm
he he.. one of the same thing dude..
September 8th, 2008 at 9:52 pm
well Premji has acquired..
September 9th, 2008 at 2:56 pm
Premji is known for his fine decisions on money matters! He spends only when the returns are likely to be very good.
Given the slump in IT, possible weakening of the BPO sector, I’d say he is hedging.
At the same time, we must also keep in mind that Wipro has bought off FMCG labels abroad & is revamping its own consumer products business.
We also know how difficult it is, to ensure shelf-space & visibility at key retail chains. Apart from difficulty, that costs a helluva lot of money, frequently.
Add to this the overall stagnancy in consumer spending.
And therefore the extra effort (and money) big guys like ITC, HLL & Nestle are going to unleash before this fiscal end.
Fianlly, many of these big players are also shifting focus to the hinterland, in search of Mr. Prahlad’s Pyramid. Wipro neither has the werewithal to match these forces in key retail nor the expertise / infrastructure to chase the tier-II / III market.
Having a siginificant stake, therefore may of of great help to influence the level of retail presence.
It may be a win-wip-win for Mr. Premji, again!