FUNDAMENTAL ANALYSIS OF TULIP

TELECOM LTD.

SUBMITTED BY: SUBMITTED

TO:

Mr. Rishab Wahal Mrs. Shankar

A0106406 E-41

ECONOMY ANALYSIS
Impact of the Information and Communications Technology (ICT) Sector on
the economy of a developing country is of prime importance in directing the
growth of the economy in the right direction and to the adequate measure. India
is one such country which is on the growth path in the ICT sector.
Telecom growth in India has been divided into phases on the basis of policies
that are being adopted by the Department of Telecommunications (DoT) of the
Government of India (GOI). The Telecom Regulatory Authority of India
(TRAI) reports show that the growth rate has exponentially increased during
the phases from a negligible quantity to a significant number. India constitutes
one of the fastest emerging telecommunications market in the world attracting
several foreign investors. With a large number of additional subscribers every
month, India could have a potentially high growth rate in the rural undeveloped
areas. Hence there is a scope for demand and growth in such areas that are yet
to be tapped effectively.
STATE OF INDIAN TELECOM IN THE PAST- 1948-1990
During these 50 years after India’s independence, the TRAI reports have
observed that the growth of tele-density has been a mere 1.92%.
Monopoly by BSNL has been one of the important reasons which attribute to
low growth rate. The telecom sector was a monopoly until reforms were
introduced and liberalization of the economy was effected in the early 90s.
BSNL was the incumbent monopoly operator in the telecom sector.
Monopolies do not have sufficient incentive to perform. The incumbent firms
are generally complacent because there is no threat of new entry. Since the
market rates are set by the monopoly, and since the consumer demands are
highly inelastic, due to the absence of alternatives, the rates are usually
unaffordable by the common public. All these reasons attribute to poor
performance and very poor delivery to the consumers.
The ending years of colonial imperial rule had left India in a staggering
financial crisis and a pathetic economic condition with a negative growth rate.
India groped to rebuild from scratch and certain factors that stunted growth to a
great extent were:
- Flawed socialist policies (“Nehruvian Penalty”)
- Ineffective implementation of the 5 year plans made
- Chronic corruption in the government
- Poor quality of human resources.
These factors thwarted economic growth to a very meager rate of just 3.5%,
which was 4% less than the projected and planned growth rate of 7.5%.
Another thing to note is the lack of emphasis that was given to
telecommunications sector during this time, as the government was aiming at
educating its people, removing poverty, improving sanitation and urbanizing
villages. Telecommunications was not considered a priority then.
IMPEDIMENTS IN DEVELOPING A STRONG INFRASTRUCTURE
Infrastructure is the structural backbone of the entire country. For a developing
country, infrastructure includes power, road, water, etc. Development of
infrastructure also aids in the growth of several related sectors like agriculture
and transport. Most of the revenue from agriculture and related industries
comes from rural India.
Therefore a significant portion of the contribution to the nation’s GDP is from
rural Indian industries. Strengthening the infrastructure in these areas would
help in contributing to the growth in GDP, which in turn would aid the
developing rural areas.
The Communist parties in India have played a principal role in thwarting the
government’s proposals on liberalization and privatization of sick industries.
Unstable political regimes are a potential hindrance to the progress of the
country in general, and it also applies to the communications sector. Corruption
and red-tapism at several strata in the government structure is also a cause for
hampering progress of the nation. This can only be solved with time and
education.
Trained manpower is a great requirement for any developing country. India has
a huge manpower base, which requires to be trained. Making new education
policies and increasing enrolment in high school is a very effective way to tap
this potential. It is well known that the rate of economic growth in a nation is
directly proportional to the number of years of technical education imparted to
its personnel. Thus India should strongly concentrate on educating its
manpower especially in the rural areas in order to make most use of its largest
resource – manpower.
Conclusion
On a concluding note, one can say that India is on the right track to becoming a
telecom super power. In fact the BRIC reports suggest that India could emerge
a super power in the world economy, provided the suggested policies are
followed and the assumptions of the author are held in consideration.
According to the BRIC Report projections, India will rise from contributing
3.5% to the world economy in terms of GDP to nearly 30% in another 50 years
by adopting some fundamental changes to the existing economic structure.
 INDUSTRY ANALYSIS
Tulip Telecom Limited is a data telecom service and IT solutions provider that
offers innovative IP based infrastructural solutions to its customers. Tulip
Telecom Ltd. is India’s largest MPLS VPN player and has been the front-
runner in provisioning and managing multi location wide area networks for
various industry verticals.
Tulip Telecom Ltd. is a public limited company and is listed on the Bombay
Stock Exchange and National Stock Exchange in India. The company has
displayed robust growth since its inception and its IPO has been ranked as one
of the top four IPO's in India, since 2005, by CNBC. With revenues in excess
of Rs 840 Crores (USD 210 Million) in the financial year ending 31st March,
2007 and a market capitalization in excess of Rs. 2500 Crores (USD 610
Million as on 30th September 2007), Tulip Telecom Ltd. is one of the largest
corporate in its domain.
Tulip Telecom Ltd. has been ranked 79 amongst Business World's India's best
performing mid-sized companies in a report titled “Tomorrow's Giants”. The
company is also ranked as India's fourth largest network integrator by Voice &
Data Magazine in their Networking Masters Issue.
Tulip Telecom Ltd. provides network integration (NI), corporate data
connectivity (MPLS VPNs and Internet) within and outside India,
infrastructure management services and IT consulting services to enterprises.
Being the largest MPLS VPN Service Provider in India, Tulip Telecom Ltd.
has innovatively deployed a countrywide network using wireless on the last
mile and has successfully bridged the large digital divide that existed in rural
connectivity in India. Tulip Telecom Ltd. has further strengthened its
leadership position by offering end-to-end fiber connectivity to all large metros
of India.
The company also specializes in providing eGovernance infrastructure and has
worked on numerous projects for the Government of India's National
eGovernance Plan.
Tulip Telecom Ltd., today, is the only service provider in its domain that
provides customers with end-to-end connectivity services include network
integration, bandwidth as well as managed services. This unique combination
of services is what distinguishes Tulip Telecom Ltd. from its competitors.

MISSION STATEMENT
Vision
• To become the largest data connectivity provider in India.

Mission

 Provide end to end managed data services to include Data Connectivity,

equipment and managed network services to meet all data connectivity
requirements of customers.
 Be the trusted advisor of the customers for all their data connectivity /
networking needs.
 Grow the business rapidly while maintaining the highest quality of
service.
 Lead the market with innovation and adaptability.
 Impact the rural economy by providing connectivity right upto to the
last village.

Corporate Citizenship
Tulip Telecom Ltd. strives to be an intellectual and social asset of the
community and environment.

Corporate Governance
Tulip Telecom Ltd. takes pride in its Corporate Governance and strives to
continuously improve its processes in order to ensure a seamless and
transparently functioning organization that creates immense value for all its
stakeholders.

MILESTONES The journey so far………

1992 Tulip Telecom Ltd. is formed on 19th May, 1992 by the name of
TULIP TELECOM LTD. SOFTWARE PRIVATE LIMITED

1994 Becomes a leading Software Product company in the country

1995 Becomes a leading Hardware company of the country

1997 Becomes a deemed public company by virtue of Section 43A of

the Companies Act, 1956

1999 Bags major Wide Area Networking Orders

2002 Changes its name to TULIP TELECOM LTD. IT SERVICES

 LIMITED

2003 Changes its line of business & starts specializing in Wide Area
Networking

2004 Launches RURAL CONNECT under “Akshaya Project” at

Mallapuram, Kerala

2005 ∙ Bags major orders for VPN connectivity for Tulip Telecom
Ltd.Connect
∙ Tulip Telecom Ltd. goes public through PO raising Rs. 108
crores in December, 2005

2006 ∙ Gets listed at BSE & NSE with its share price touching
all time high of Rs. 405/- in April, 2006

2007 ∙ 15th Annual General Meeting in Sep., 2007

∙ A large number of blue chip business houses which came on to

Tulip Telecom Ltd.'s network include Safexpress, Aditya Birla
Group, First India Credit Corp, Dabur, Bajaj Allianz, Idea
Cellular, ICICI Bank and SIDBI among many others.

∙ Success in key initiatives including Haryana SWAN and other

two state government Data Centre build projects.

∙ Tier 3 Data Centre at Delhi with four more coming up in

Mumbai, Bangalore, Chennai and Hyderabad.

∙ Tulip Telecom Ltd.'s VPN reached over 1100 locations

including the remotest no-connectivity regions of the country.

CORPORATE PROFILE
BOARD MEMBERS

Lt. Col. (Retd.) H.S.Bedi, VSM

Managing Director

Mrs. Maninder Bedi

Executive Director
 Mr. Chandrahas Kutty
Non-Executive Independent Director

Mr. Rajesh Gulshan

Non-Executive Independent Director

Mr. Jasbinder S. Rai

Non-Executive Independent Director

Lt. Gen. (Retd.) A.N. Sinha

Non-Executive Independent Director

Mr. Deepinder Singh Bedi

Non-Executive & Non-Independent Director

Ms. Sukhmani Bedi

Non-Executive & Non-Independent Director

Mr. Prithipal Singh

Non-Executive Independent Director

COMMITTEES OF THE BOARD

Audit Committee: Mr. Chandrahas Kuttty (Chairman)

Mr. Rajesh Gulshan (Member)
Mr. Jasbinder S. Rai (Member)

Shareholders/Investor
Grievance Committee: Mr. Chandrahas Kutty (Chairman)
Mr. Rajesh Gulshan (Member)
Mr. Jasbinder S. Rai (Member)
Remuneration Committee: Mr. Chandrahas Kutty (Chairman)
Mr. Rajesh Gulshan (Member)
Mr. Jasbinder S. Rai (Member)

CFO & Company Secretary: Mr. Dinesh Kaushal

Registered & Corporate Office: C-160, Okhla Industrial Area, Phase-I,

New Delhi – 110020

Subsidiary:-
Tulip Telecom Ltd. IT Services Singapore Pte. Ltd.
# 1, North Bridge Road, # 19-04/05, High Street Centre, Singapore

Auditors

M/s. R.Chadha & Associates

Chartered Accountants
A-43, Naraina Industrial Area
New Delhi

Bankers

Bank of India Indian Overseas Bank

Canara Bank Yes Bank Ltd.
Indus Ind Bank HDFC Bank Limited
ICICI Bank Limited Standard Chartered Bank
The HSBC Ltd. DBS Ltd.

Website
www.tuliptel.com
SERVICE PROVIDER SOLUTION PORTFOLIO

With more than a decade of expertise in the dynamic service provider

environment, Tulip Telecom Ltd. is strongly positioned to enable upcoming or
mature service providers with a vast range of infrastructure solutions. Tulip
Telecom Ltd. has also tie-ups with large OEM’s including Cisco Systems,
Nortel, Huawei-3Com, Juniper, Firepro Wireless, Alvarion & Airspan among
many others.
Core Network Solutions: Tulip Telecom Ltd. offers flexible solutions
enabling Service Providers to establish a carrier connectivity infrastructure for
various service areas. The following services are offered:-
A. IP Services Fabric: Tulip Telecom Ltd. helps service providers in
setting up point-to-point and multipoint, partially or meshed networks
leveraging the vast national long distance infrastructure deployed in the region.
The infrastructure solutions can be built using multiple technology platforms
including TCP/IP, MPLS & Frame Relay. The network also offers tremendous
flexibility in choice of multiple access technologies including fiber, copper,
satellite & radio infrastructure.

The IP Services is based on Carrier-grade infrastructure offering the

following key features:-

1. High Availability: The network infrastructure is highly rugged & built with
multiple levels of redundancy to avoid single point of failure & ensure ‘always
up’ services.
2. High Scalability: With a span of over POPs in over 1100 locations, the
network provides the largest geographical coverage in the country. The
infrastructure is highly scalable & resilient with the ability to cater to any
planned and unplanned increase in coverage & traffic volumes.
3. High Security: The network provides highly secure connectivity to meet
stringent requirements using state-of-the-art encryption & tunnelling
technologies.
4. Quality of Service: The network is geared to offer differentiated services to
cater to all types of traffic requirements.
5. Network Management: Carrier-grade FCAPS-enabled Network, Operations
& Provisioning system for infrastructure & end-user management.
6. Seamless extension of Services: Data services can be seamlessly extended
to the end-users of the service provider using state-of-the-art inter-service
provider connectivity solutions including inter-AS & CsC. This enables the
service provider to offer a vast portfolio of services including the following:
∙ Layer 3 MPLS VPN: Fully managed hub-and-spoke & full mesh VPN
for secure & flexible any-to-any connectivity.
∙ Layer 2 MPLS VPN: IP-based Virtual Leased Line solutions with
flexible bandwidth configurations. Multiple Layer 2 technologies are
supported including Ethernet, PPP, Frame Relay & ATM.
∙ IP VPN Services: Secure point-to-point & multipoint IP connectivity
using IPSec & GRE tunnelling.
∙ Internet Access Services: High speed internet access at any of the 800
locations in India.
∙ Managed security Services: Provide network-wide protection from
attacks & intrusions through centralised & distributed managed
firewalls.
 ∙ Videoconferencing; Point-to-point & multipoint videoconferencing.
∙ Multicast VPN: Multicast traffic carriage within VPNs.

B. Wireless Backhaul Solutions: For wireless service providers, it is

critical to have robust backhaul links for connecting base stations & access
nodes. With its unmatched expertise & experience in microwave & other
wireless technologies domain, Tulip Telecom Ltd. offers service providers the
opportunity to build rugged & highly reliable wireless backhaul solutions.

Features & Benefits

1. Wireless backhaul links on 2.x/3.x/5.x/10.x GHz & .802.16d platforms
2. Highest carrier capacities (54 Mbps & more)
3. Ideal for long distance carriage
4. NLOS operation

C. Access Network Solutions: Access Solutions helps service providers

to reach out to service subscribers in accordance with KPIs matching the best
in the industry.
It is now well proven that wireless is the quickest & easiest way to provide
connectivity to the populace. Wireless networks are increasingly replacing
traditional wired networks. Wireless access solutions helps service providers &
governments of developing countries to bridge the digital divide at a fraction of
cost & time as compared to traditional networks. Indeed, wireless access is
often the only means to provide connectivity in the remotest parts of the
country. Besides the deployment cost benefits, wireless also offers very high
availability- in excess of 99.5%. the benefits of such an infrastructure setup can
be readily seen in the economic indices.
Having built the largest service provider network using wireless in the last
mile, Tulip Telecom Ltd. is the undisputed leader in this field and offers
service providers the expertise to quickly build & roll-out wireless access
solutions.

Features & Benefits

1. Access network links on 802.11, 802.16 d/e, P2MP, P2P platforms
2. Lower frequency distribution for higher penetration – ideal for indoors
3. Carriage of data & voice in shared setups
4. Provide enterprise, government & retail solutions from the same
infrastructure with configurable & context-based provisioning.
5. Easy setup of internet hotspots in commercial locations.
6. Ideal for G2C, G2G & other citizen centric services.

D. Infrastructure Installation Services: With its vast pool of skilled &

experienced network & wireless engineers, Tulip Telecom Ltd. offers a wide
range of network & infrastructure installation services including the following:
 1. Base Station Setup & Commissioning
2. Drive Tests
3. Network Fine-tuning solutions

E. Remote Infrastructure Management Solutions: Tulip Telecom

Ltd. has setup highly sophisticated Network Operation Centres (NOC) for
centralized infrastructure operations management. With a large pool of highly
skilled & experienced engineers & experts in multi-faceted technologies, Tulip
Telecom Ltd. offers comprehensive & versatile remote operations &
infrastructure management solutions for service pro. Tulip Telecom Ltd. Asset
Management services keeps track of all assets deployed in even the remotest
parts of the country. Assets including base stations, UPS & other power
systems, microwave & other wireless systems can be comprehensively
monitored & managed from a single dashboard.
Asset Management Solutions & Network Operations Solutions work in tandem
to ensure the best operational results. Network Operations in the managed
services portfolio are based on the following fundamentals of managed
services:

1. Fault Management
2. Configuration Management
3. Accounting Management
4. Performance Management
5. Security Management

F. Managed Network Solutions: Tulip Telecom Ltd.’s Managed

Network Solutions provide complete network provisioning, monitoring &
management of end-to-end connectivity. With its sophisticated network
operation centres, Tulip Telecom Ltd. ensures high service levels. The delivery
models include onsite, offsite & hybrid environments.

G. Data Centre Solutions: Tulip Telecom Ltd. offers co-location &

hosting services in its state-of-the-art Tier 3 Data Centre facilities in Delhi 7
upcoming centres in Mumbai & two other cities. These Data Centres offers
service providers the ability to use it as their primary &/or secondary
infrastructure facilities for quickly launching & extending their customer
services. With its unmatched expertise in this arena, Tulip Telecom Ltd. also
undertakes complete data Centre Build & consulting solutions for Service
Providers.

H. Network Outsourcing: Over the past years, Tulip Telecom Ltd. has
built processes & skill sets in the filed of service provider network operations.
Having run the largest data service provider network in India, Tulip Telecom
Ltd. is best equipped to operate & manage service provider network & ensure
the highest quality of services to its end customers.

I. Consulting Services: Tulip Telecom Ltd. is one of the few

organisations that have the distinction of possessing vast expertise &
experience in the domains of Service Provider technology & operations as well
as Systems Integration, Tulip Telecom Ltd. has built a large team with a vast
knowledge base of multiple leading-edge technologies including IP, MPLS,
wireless as well as end-to-end system integration & customisation. Tulip
Telecom Ltd.’s offers this unmatched team of experts to provide consulting
services to design, build, deploy & manage solutions.

MARKET SHARE
Tulip Telecom Ltd. has the fourth largest market share

Revenues (Rs crores)

Rank Company FY06 FY07 % Growth Market Share

(%)
1 Wipro InfoTech 670 1,028 53.4 15.3
2 HCL Comnet 491 812 64.4 12.1
3 Datacraft 519 675 30.1 10.0
4 Tulip Telecom 426 525 23.2 7.8
Ltd.
5 HCL 345 524 51.9 7.8
Infosystems
6 GTL 229 274 19.7 4.1
7 Others 2,539 2,896 14.1 43.0
5,219 6,734 29 100.0

*Others include Secure Energy, Targus Tech, HP, IBM, Tata Infotec,
CMC, Network Solutions, Ramco, etc
 TATA CONSULTANCY SERVICES
HISTORY

Tata Consultancy Services was established in the year 1968. It began as the
"Tata Computer Centre", a division of the Tata Group, whose main business
was to provide computer services to other group companies. However, the
potential of computerization and computer services was realized early on, and
an electrical engineer from the Tata Electric Companies, Fakir Chand Kohli,
was brought in as the first General Manager. Soon after, the company was
named Tata Consultancy Services.
TCS's first software export project was undertaken in 1974 when it converted
the Hospital Information System from Burroughs Medium Systems COBOL to
Burroughs Small Systems COBOL. This project was carried out entirely in
TCS Mumbai on the ICL 1903 Computer. In 1980, TCS and a sister Tata firm
accounted for 63% of the Indian software industry exports, $4 million shared
by 21 firms. In 1984, TCS set up an office in the Santacruz Export Processing
Zone (SEEPZ) – Mumbai.
The early 1990s saw a tremendous surge in TCS's business, which also resulted
in a massive recruitment drive by the company. In early and mid-1990s, TCS
re-invented itself to become a software products company. In the late 1990s, to
accelerate its revenue growth, TCS decided to employ a three-pronged strategy
– developing new products with high revenue earning potential, tapping
domestic and other fast growing markets and focusing on inorganic growth
through mergers & acquisitions. In late 1998, the company decided to
concentrate on new revenue opportunities including Y2K and Euro conversion.
E-business was a major area of focus in the late 1990s.

In 2004, TCS became a publicly listed company.

Tata Group profile

Tata is a rapidly growing business group based in India with significant
international operations. Revenues in 2007-08 (un-audited) are estimated in
excess of $55 billion (around Rs231,000 crore), of which 65 per cent was from
business outside India. The Group employs around 350,000 people worldwide.
The Tata name has been respected in India for 140 years for its adherence to
strong values and business ethics.

The business operations of the Tata Group currently encompass seven business
sectors: Communications and Information Technology, Engineering, Materials,
Services, Energy, Consumer Products and Chemicals. The Group's 27 publicly
listed enterprises have a combined market capitalisation of $54.88 billion as on
June 26, 2008, among the highest among Indian business houses, and a
shareholder base of 2.9 million. The major companies in the Group include
Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata
Chemicals, Tata Tea, Indian Hotels and Tata Communications.

The Group’s major companies are beginning to be counted globally. Tata Steel
became the sixth largest steel maker in the world after the acquisition of Corus.
Tata Motors is amongst the top five commercial vehicle manufacturers in the
world and has recently completed the acquisition of Jaguar and Land Rover.
TCS is one of the leading global software businesses, with delivery centres in
the US, UK, Hungary, Brazil, Uruguay and China, other than India. Tata Tea is
the second largest branded tea company in the world, through its UK based
subsidiary Tetley. Tata Chemicals is the world’s second largest manufacturer
of soda ash. Tata Communications is one of the world’s largest wholesale voice
carriers.

In tandem with the increasing international footprint of its companies, the

Group is also gaining international recognition. Brand Finance, a UK based
consultancy firm, recently valued the Tata brand at US$ 11.4 billion and ranked
it 57th amongst the Top 100 brands in the world. Businessweek ranked the
Group sixth amongst the ‘World’s Most Innovative Companies’ and the
Reputation Institute, USA recently rated it as the ‘World’s sixth Most Reputed
Firm.’

Founded by Jamsetji Tata in 1868, the Tata Group’s early years were inspired
by the spirit of nationalism. The Tata Group pioneered a number of industries
of national importance in India: steel, power, hospitality and airlines. In more
recent times, the Tata Group’s pioneering spirit has been showcased by
companies like Tata Consultancy Services, India’s first software company,
which pioneered the international delivery model, and Tata Motors which made
India’s first indigenously developed car, the Indica, in 1998 and recently
unveiled the world’s least cost car, the Tata Nano, for commercial launch by
end of 2008.

The Tata Group has always believed in returning wealth to the society it serves.
Two-thirds of the equity of Tata Sons, the Tata Group’s promoter company, is
held by philanthropic trusts which have created national institutions in science
and technology, medical research, social studies and the performing arts. The
trusts also provide aid and assistance to NGOs in the areas of education,
healthcare and livelihoods. Tata companies also extend social welfare activities
to communities around their industrial units. The combined development-
related expenditure of the trusts and the companies amounts to around 4 per
cent of the Group’s net profits.
Going forward, the Group is focusing on new technologies and innovation to
drive its business in India and internationally. The Nano car is one example, as
is the Eka supercomputer, currently ranked the world’s fourth fastest,
developed by one of its companies. The Group aims to build a series of world
class, world scale businesses in select sectors. Anchored in India and wedded to
its traditional values and strong ethics, the Group is building a multinational
business which will achieve growth through excellence and innovation, while
balancing the interests of its shareholders, its employees and wider society.

Purpose

At the Tata Group our purpose is to improve the quality of life of the
communities we serve. We do this through leadership in sectors of national
economic significance, to which the Group brings a unique set of capabilities.
This requires us to grow aggressively in focused areas of business.

Our heritage of returning to society what we earn evokes trust among

consumers, employees, shareholders and the community. This heritage is being
continuously enriched by the formalisation of the high standards of behaviour
expected from employees and companies.

The Tata name is a unique asset representing leadership with trust. Leveraging
this asset to enhance Group synergy and becoming globally competitive is the
route to sustained growth and long-term success.

Five core values

The Tata Group has always sought to be a value-driven organisation. These

values continue to direct the Group's growth and businesses. The five core Tata
values underpinning the way we do business are: Integrity: We must conduct
our business fairly, with honesty and transparency. Everything we do must
stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and humanity
for our colleagues and customers around the world, and always work for the
benefit of the communities we serve.
Excellence: We must constantly strive to achieve the highest possible
standards in our day-to-day work and in the quality of the goods and services
we provide.
Unity: We must work cohesively with our colleagues across the Group and
with our customers and partners around the world, building strong relationships
based on tolerance, understanding and mutual cooperation.
Responsibility: We must continue to be responsible, sensitive to the countries,
communities and environments in which we work, always ensuring that what
comes from the people goes back to the people many times over.
 WIPRO
Wipro Technologies is the No.1 provider of integrated business, technology
and process solutions on a global delivery platform. Wipro Technologies is a
global services provider delivering technology-driven business solutions that
meet the strategic objectives of our clients. Wipro has 40+ ‘Centres of
Excellence’ that create solutions around specific needs of industries. Wipro
delivers unmatched business value to customers through a combination of
process excellence, quality frameworks and service delivery innovation. Wipro
is the World's first CMMi Level 5 certified software services company and the
first outside USA to receive the IEEE Software Process Award.

Wipro was set up in 1945. Primarily an edible oil factory, the chief products
were Sunflower Vanaspati and 787 laundry soap (a by-product of the Vanaspati
operations). The company was called Western India Vegetable Products
Limited; it had a minor presence in Maharashtra and Madhya Pradesh. In the
1970s and 1980s, it began to expand and made forays into computing. In 1975,
Wipro marketed India's first homegrown PC.
Wipro was the sole representative for Sun Microsystems in India, before the
Sun liaison office was set up in India, in the early 1990s. Wipro is the highest-
ranked Indian IT provider by International Association of Outsourcing
Professionals.
Wipro and its success in handling outsourced information technology from US
businesses is detailed in Thomas L. Friedman's best-selling book The World Is
Flat and Steve Hamm's Bangalore Tiger. Wipro's offshore model is
considered 'unique among the larger players in the security consulting space'
according to an independent report by Forrester Research

Some quick facts on Wipro

 Wipro becomes the first Indian IT Service Provider to be awarded Gold-

Level Status in Microsoft’s Windows Embedded Partner Program

 Wipro is the world’s largest independent R&D Services Provider

 Worlds 1st PCMM Level 5 software company

 Wipro one among the few companies in the world to be assessed at

maturity level 5 for CMMI V1.2 across offshore and onsite development
centres, 2007

 Worlds 1st IT Services Company to use Six Sigma

  The pioneers in applying Lean Manufacturing techniques to IT services

 World’s first SEI CMM/CMMI Level 5 IT services company

 The first to get the BS15000 certification for its Global Command
Centre

 Functional RFID Enabled Concept Store and Global Data

Synchronization Laboratory BS7799 and ISO 9000 certified

 Among the top 3 offshore BPO service providers in the world

 Wipro is a strategic partner to five of the top ten most innovative

companies in the world*
(*Technology Review Innovation Index 2005)

 Over 50 industry facing ‘Centres of Excellence'

 647 clients - 72000+ employees

 53 development centres across globe

Time line

1945: Western India Vegetable Products Limited is created

1947: An oil mill and hydrogenated cooking medium plant set up

in Amalner, Maharashtra.

1966: Azim Premji takes over leadership of Wipro at age 21

1975: Wipro Fluid Power is set up to manufacture hydraulic and

pneumatic cylinders

1977: Company is renamed to Wipro Products Limited

1980: Information technology services for domestic market started

1981: Hardware company is launched

1982: Company is renamed to Wipro Limited

1984: Software products subsidiary Wipro Systems Ltd. is
established
1985: Toilet soaps manufacture begins

1988: Wipro BioMed is launched. It is a new business unit to

market and service bio-analytical and diagnostic instruments

1989: Joint venture with GE for medical systems, Wipro GE

Medical Systems Ltd

1990: Product software business discontinued; software services

begin

1992: Lighting business and finance arm is established

1994: Merger of subsidiaries Wipro Technologies Ltd. and Wipro

Systems Ltd. with Wipro Ltd.

1995: Received ISO 9001 quality certification

1997: Received CMM level 3 certification from the Software

Engineering Institute of India

1998: Wipro identity is relaunched with rainbow flower and

positioning statement, "Applying Thought"

1998: Certified at CMMi level 5

1999: Brand makeover, with sunflower logo and the tag line
"Applying Thought"

1999: Wipro Net is set up by restructuring Wipro Ltd.'s

communication services business to address the Internet
market

2000: Wipro Ltd.'s American depositary receipts are listed on New

York Stock Exchange
2000: Six Sigma initiative begun

2001: Wipro receives a $70 million SI order, the largest ever till
overtaken by TCS

2001: Awarded the PCMM level 5 certification

2001: Business Today rated it as India's most valuable company

2001: BusinessWeek ranked it among the top 100 best performing

technology companies globally

2002: Acquires Raman Roy's Spectramind for US$ 175 million to

get into BPO industry

2002: BusinessWeek ranked it among the top 10 software services

companies

2004: Becomes 4th largest company in the world in terms of

market capitalization in IT services

2005: Becomes a $2 billion company

2006: Acquires Newlogic Technologies, Austria, a major

semiconductor IP design provider in wireless and bluetooth
domains

2006: Post acquisition of Newlogic, it becomes the world's largest

third-party R&D service provider.

2006: Acquires Saraware, a wireless R&D service provider from

Finland

2006: Acquires Quantech, a mechanical engineering design

provider

2006: Acquires Enabler, a leading retail solutions provider from

Portugal

2006: Joint venture company WMNetServ with Motorola

2006: Net profit for July, August and September rises 48% to
$152m (£81m)
2007: Revenues reach $3.5billion

2007: Becomes SOX Compliant.

2007: Wipro-Biomed Division sold to Ranbaxy Fine Chemicals

2007: Wipro opens new development center in Monterrey,

Mexico
2007: Acquires U S based Infocrossing

2008: Acquires Aquatech Industries Pvt. Ltd. and its sister concerns
 FINDINGS
For the year 2007-08

RATIOS (In %) Tulip Wipro Tata Consultancy

Telecom Services
Ltd.
Net Profit Ratio 8 9 8
Profit to Net 26 14 13
Worth Ratio
Asset Turnover 246 143 198
Ratio
Working Capital 324 483 1006
Ratio
Return on Net 42 29 47
Worth Ratio
Fixed Assets to 509 899 667
Turnover Ratio
Current Ratio 376 254 199
Working Capital 40 30 9
to Total Assets
Ratio
Return on Capital 46 32 57
Employed
Debt-Equity 47 19 0
Ratio
Here’s a bar diagram depicting the above ratios more clearly.

Fixed Assets to Turnover

Tata Consultancy Services
Ratio
Return on Capital Employed
Working Capital to Total
Assets Ratio
Current Ratio
#REF!
Wipro Working Capital Ratio
Asset Turnover Ratio
Profit to Net Worth Ratio
Net Profit Ratio

Tulip

0 200 400 600 800 1000 1200

ESTIMATED BALANCE SHEET

 Assets in Millions of Dollars        
  Mar-09E        

 
Cash and Equivalents 981        
Marketable Securities 370        
Receivables 1,180        
Inventories 179        
Other Current Assets 477        

Total Current Assets 3,207        

 
Gross Fixed Assets 1,534        
Accumulated Depreciation -539        

Net Fixed Assets 995        

Intangibles 312        
Other Non-Current Assets 123        

Total Non-Current Assets 2,403        

Total Assets 5,610        

 
Liabilities in Millions of Dollars        
  Mar-08        

 
Accounts Payable 327        
Short Term Debt 738        
Other Current Liabilities 366        

Total Current Liabilities 1,867        

 
Long Term Debt 363        
Deferred Income Tax 52        
Other Non-Current Liabilities 72        
Minority Interest 3        

Total Non-Current 508        

Liabilities
Total Liabilities 2,375        

 
Preferred Stock Equity -        
Common Stock Equity 3,235        

Total Equity 3,235        

Total Liabilities & Stock 5,610        

Equity

ESTIMATED P & L ACCOUNT

 2009E
Net sales 16,511

Operating Expenses -13,783

EBIT 2,727

Net interest expense 78

Non-
operating/exceptionals 0

Pre-Tax Profit 2,805

Tax -281

Extraord./Min.Int./Pref.div
. 0

Reported Net Income 2,525

Adjusted earnings 2,525

Adjusted EBITDA 3,500

Growth Rates (%)

Sales 39.4

EBIT adjusted 38.3

EBITDA adjusted 44.4

EPS adjusted 40.8

The stock price as on Monday was 678.25.