Bangalore: Wipro has brought 229 year old British brand Yardley's business in select markets such as India, Asia, Australiasia, Middle East and north and west Africa to stretch its personal care portfolio to the premium range.
Wipro Consumer Care and Lighting, the consumer products arm of the software firm, has taken up Yardley business across these areas for $45.5 million (Rs. 215 crore), continuing its takeover spree that included Unza.
"We picked up a lot of debt from Unza's balance sheet when we acquired it. Yardley is a profitable brand and will add to our operating margins which are at 10-13 percent," said Vineet Agrawal, President, Wipro Consumer Care.
Being controlled by British billionaire Mike Jatania, Lornamead had acquired the Yardley brand in September 2005 for 60 million pounds. It will retain the Yardley business in Europe and America. Funded by internal accruals, this deal will enable Wipro straddle different price points and give it greater bargaining power for key accounts in certain markets.
"Yardley is a great fit for Wipro if it wants to go beyond Santoor to include more premium brands. Synergies will improve if Wipro took a bottoms-up approach of gearing its sales force and partners towards this change to premium range," said Anand Ramanathan, FMCG Analyst, KPMG.
Yardley's Lavender talcum-to-soap range is priced around 50 percent higher than the costliest brand in Wipro's existing portfolio, Unza's Enchanteur range. This move will also strategically surge Wipro Consumer Care's foothold in high growth markets such as the Middle East where its overall revenue is projected to double to $30-35 million. The Middle East contributes 70 percent to the acquisitions revenues, with 20 percent coming from India and the remainder from other Asian markets.
Wipro is also in plans to increase the product range under the Yardley brand. "We see certain gaps in Yardley's product range such as body washes and deodorant roll-ons, which we feel could be added to increase relevance with the youth. We are also evaluating the manufacture of Yardley products such as soaps through our factories," said Agarwal.
The company plans to leverage its distribution reach across 50,000 outlets in metros and tier-I cities to grow the brand in India and sees cost efficiencies rising out of merging common suppliers. Wipro Consumer Care has made a series of acquisitions in the past six years.
Wipro arrived on the acquisition stage in 2003 by picking up Hindustan Unilever's glucose drink brand Glucovita. It bought Kerala based ayurvedic brand Chandrika after one year and Delhi based North West Switchgear's switches business in 2006.
Wipro Consumer Care division came into limelight in 2007 with its $246 million purchase of Singapore based personal care firm Unza Holdings, which has a significant presence across South-East Asian markets. This deal will see Wipro Consumer Care's contribution to the parent's top line growing by 50 basis points. In the second quarter, the consumer-care division notched up eight percent of Wipro's overall revenues. Wipro's stock closed at Rs. 598.30 on the Bombay Stock Exchange, a rise of 0.42 percent on Thursday.
Friday, November 6, 2009
Wipro buys Yardley's byusiness
Bangalore: Wipro has brought 229 year old British brand Yardley's business in select markets such as India, Asia, Australiasia, Middle East and north and west Africa to stretch its personal care portfolio to the premium range.
Wipro Consumer Care and Lighting, the consumer products arm of the software firm, has taken up Yardley business across these areas for $45.5 million (Rs. 215 crore), continuing its takeover spree that included Unza.
"We picked up a lot of debt from Unza's balance sheet when we acquired it. Yardley is a profitable brand and will add to our operating margins which are at 10-13 percent," said Vineet Agrawal, President, Wipro Consumer Care.
Being controlled by British billionaire Mike Jatania, Lornamead had acquired the Yardley brand in September 2005 for 60 million pounds. It will retain the Yardley business in Europe and America. Funded by internal accruals, this deal will enable Wipro straddle different price points and give it greater bargaining power for key accounts in certain markets.
"Yardley is a great fit for Wipro if it wants to go beyond Santoor to include more premium brands. Synergies will improve if Wipro took a bottoms-up approach of gearing its sales force and partners towards this change to premium range," said Anand Ramanathan, FMCG Analyst, KPMG.
Yardley's Lavender talcum-to-soap range is priced around 50 percent higher than the costliest brand in Wipro's existing portfolio, Unza's Enchanteur range. This move will also strategically surge Wipro Consumer Care's foothold in high growth markets such as the Middle East where its overall revenue is projected to double to $30-35 million. The Middle East contributes 70 percent to the acquisitions revenues, with 20 percent coming from India and the remainder from other Asian markets.
Wipro is also in plans to increase the product range under the Yardley brand. "We see certain gaps in Yardley's product range such as body washes and deodorant roll-ons, which we feel could be added to increase relevance with the youth. We are also evaluating the manufacture of Yardley products such as soaps through our factories," said Agarwal.
The company plans to leverage its distribution reach across 50,000 outlets in metros and tier-I cities to grow the brand in India and sees cost efficiencies rising out of merging common suppliers. Wipro Consumer Care has made a series of acquisitions in the past six years.
Wipro arrived on the acquisition stage in 2003 by picking up Hindustan Unilever's glucose drink brand Glucovita. It bought Kerala based ayurvedic brand Chandrika after one year and Delhi based North West Switchgear's switches business in 2006.
Wipro Consumer Care division came into limelight in 2007 with its $246 million purchase of Singapore based personal care firm Unza Holdings, which has a significant presence across South-East Asian markets. This deal will see Wipro Consumer Care's contribution to the parent's top line growing by 50 basis points. In the second quarter, the consumer-care division notched up eight percent of Wipro's overall revenues. Wipro's stock closed at Rs. 598.30 on the Bombay Stock Exchange, a rise of 0.42 percent on Thursday.
Wipro Consumer Care and Lighting, the consumer products arm of the software firm, has taken up Yardley business across these areas for $45.5 million (Rs. 215 crore), continuing its takeover spree that included Unza.
"We picked up a lot of debt from Unza's balance sheet when we acquired it. Yardley is a profitable brand and will add to our operating margins which are at 10-13 percent," said Vineet Agrawal, President, Wipro Consumer Care.
Being controlled by British billionaire Mike Jatania, Lornamead had acquired the Yardley brand in September 2005 for 60 million pounds. It will retain the Yardley business in Europe and America. Funded by internal accruals, this deal will enable Wipro straddle different price points and give it greater bargaining power for key accounts in certain markets.
"Yardley is a great fit for Wipro if it wants to go beyond Santoor to include more premium brands. Synergies will improve if Wipro took a bottoms-up approach of gearing its sales force and partners towards this change to premium range," said Anand Ramanathan, FMCG Analyst, KPMG.
Yardley's Lavender talcum-to-soap range is priced around 50 percent higher than the costliest brand in Wipro's existing portfolio, Unza's Enchanteur range. This move will also strategically surge Wipro Consumer Care's foothold in high growth markets such as the Middle East where its overall revenue is projected to double to $30-35 million. The Middle East contributes 70 percent to the acquisitions revenues, with 20 percent coming from India and the remainder from other Asian markets.
Wipro is also in plans to increase the product range under the Yardley brand. "We see certain gaps in Yardley's product range such as body washes and deodorant roll-ons, which we feel could be added to increase relevance with the youth. We are also evaluating the manufacture of Yardley products such as soaps through our factories," said Agarwal.
The company plans to leverage its distribution reach across 50,000 outlets in metros and tier-I cities to grow the brand in India and sees cost efficiencies rising out of merging common suppliers. Wipro Consumer Care has made a series of acquisitions in the past six years.
Wipro arrived on the acquisition stage in 2003 by picking up Hindustan Unilever's glucose drink brand Glucovita. It bought Kerala based ayurvedic brand Chandrika after one year and Delhi based North West Switchgear's switches business in 2006.
Wipro Consumer Care division came into limelight in 2007 with its $246 million purchase of Singapore based personal care firm Unza Holdings, which has a significant presence across South-East Asian markets. This deal will see Wipro Consumer Care's contribution to the parent's top line growing by 50 basis points. In the second quarter, the consumer-care division notched up eight percent of Wipro's overall revenues. Wipro's stock closed at Rs. 598.30 on the Bombay Stock Exchange, a rise of 0.42 percent on Thursday.
TCS Hires 300 for US Center
Mumbai: Tata Consultancy Services (TCS) has hired around 300 associates for its North America Domestic Delivery Center, TCS Seven Hills Park. Seven Hills Park provides a wide-range of IT solutions, consulting, business process outsourcing and engineering services for TCS customers across industries including banking and financial services, life-science and health care, as well as manufacturing and retail.
"I welcome these new associates into the TCS family and am sure they will help our customers achieve even greater success in the future," TCS's Chief Executive Officer and Managing Director, N Chandrasekaran, said.
TCS Seven Hills Park is also the location of TCS's new North American Training Center. Over the last several months, more than 225 associates have joined the company from top universities throughout the country, the release said. TCS has over 1,40,000 trained IT consultants in 42 countries.
"I welcome these new associates into the TCS family and am sure they will help our customers achieve even greater success in the future," TCS's Chief Executive Officer and Managing Director, N Chandrasekaran, said.
TCS Seven Hills Park is also the location of TCS's new North American Training Center. Over the last several months, more than 225 associates have joined the company from top universities throughout the country, the release said. TCS has over 1,40,000 trained IT consultants in 42 countries.
Tuesday, November 3, 2009
Google better than Microsoft say students
Bangalore: Google is more attractive employer than Microsoft according to the first global index of employer attractiveness by Universum. Google tops the list of Global Top 50 Business and the Global Top 50 Engineering employer. As compared to Google, Microsoft is on the third position on the Global Top 50 Business for attractive employers. After Google, PricewaterhouseCoopers is on the second spot in the Global Top 50 Engineering employers list.
Universum's global index of employer attractiveness is designed to assess the world's most powerful employer brands. Google is, by far, the ideal company to work for according to 120,000 students from top academic institutions worldwide. The positions occupied by the Google and Microsoft are clear indications of their success related to talent attraction and retention.
"These companies in the Top 50 really work with employer branding strategically. The Big Four, for example, are all in the top 10 business ranking, as they have employer branding as part of their business strategy. Many associate their corporate brands to people. This is normal for the service industry, but it's a new approach for other companies. These companies are in the Top 50 because they are focused, consistent and differentiate themselves in their communication." said Michal Kalinowski, CEO of Universum to Softpedia.
Students from U.S., Japan, China, Germany, France, UK, Italy, Russia, Spain, Canada, and India have helped define the world's top 50 most attractive employers, Universum explained. In this regard, the list with the best employers to work for emphasizes the globalization of the talent market. Google, Microsoft and IBM are, in this context, attractive employers because students are aiming for an international career with multinational companies capable of offering secure employment.
But what can be other reasons to be attracted more towards Google. Here are few good reason: The campus in Mountain View strictly follows the company's founders, Sergei Brin and Larry Page, orders that food (it's free) should not be away more than 150 feet from the employees. So, Google runs 11 free gourmet cafeterias and scores of snack rooms, which contain cereals, candy, nuts, yogurt, carrots, fresh fruit and other snacks, and dozens of drinks, including soda and make-your-own cappuccino.
If an employee wants to buy a hybrid car, Google pays up to $5,000 to the employee for environmentally friendly effort. If employee has a baby, Google pays $500 to buy baby stuff. Drop off laundry and get it dry cleaned for free. Get onsite free massage and haircut, and an oil change or wash for the car. Work is such a cosy place that it's difficult for Google employees to leave office.
Universum's global index of employer attractiveness is designed to assess the world's most powerful employer brands. Google is, by far, the ideal company to work for according to 120,000 students from top academic institutions worldwide. The positions occupied by the Google and Microsoft are clear indications of their success related to talent attraction and retention.
"These companies in the Top 50 really work with employer branding strategically. The Big Four, for example, are all in the top 10 business ranking, as they have employer branding as part of their business strategy. Many associate their corporate brands to people. This is normal for the service industry, but it's a new approach for other companies. These companies are in the Top 50 because they are focused, consistent and differentiate themselves in their communication." said Michal Kalinowski, CEO of Universum to Softpedia.
Students from U.S., Japan, China, Germany, France, UK, Italy, Russia, Spain, Canada, and India have helped define the world's top 50 most attractive employers, Universum explained. In this regard, the list with the best employers to work for emphasizes the globalization of the talent market. Google, Microsoft and IBM are, in this context, attractive employers because students are aiming for an international career with multinational companies capable of offering secure employment.
But what can be other reasons to be attracted more towards Google. Here are few good reason: The campus in Mountain View strictly follows the company's founders, Sergei Brin and Larry Page, orders that food (it's free) should not be away more than 150 feet from the employees. So, Google runs 11 free gourmet cafeterias and scores of snack rooms, which contain cereals, candy, nuts, yogurt, carrots, fresh fruit and other snacks, and dozens of drinks, including soda and make-your-own cappuccino.
If an employee wants to buy a hybrid car, Google pays up to $5,000 to the employee for environmentally friendly effort. If employee has a baby, Google pays $500 to buy baby stuff. Drop off laundry and get it dry cleaned for free. Get onsite free massage and haircut, and an oil change or wash for the car. Work is such a cosy place that it's difficult for Google employees to leave office.
Mid Tier IT Companies eye local deals worth 2 Billion USD
Mumbai: As the big companies are chasing the lucrative domestic market, the mid tier technology firms like Patni Computer Systems and Hexaware are attempting to enter the market by jointly bidding with experienced bidders, reports The Economic Times.
The Indian government departments and other state owned firms will spend around $2 billion on IT during the next 12 months. Hexaware, MindTree and Patni are among the many mid-tier technology firms seeking to explore new business with an experienced partner.
For instance, Hexaware is pursuing some large deals as part of a consortium and several smaller ones on its own. Its strategy for the Indian market will be different from its strategy for overseas markets, said Hexaware's Vice Chairman and CEO, PR Chandrasekar.
"If we treat India as just another location for our services, it will not work. It will need fairly dedicated focus and some innovation on how we source talent and price our offerings. You also need to leverage your niche capabilities, especially if you are not one of the big players," said Chandrasekar, who was earlier with Wipro.
For putting better focus on the Indian market, companies such as Hexaware and Patni have recently formed focused business units. As Narendra Upasani heads Hexaware's India business, Deepak Khosla is responsible for growing Patni's revenues from the country.
Hexaware will work as part of a consortium because the large contracts in the government and public sector projects usually require the bidder to have a track record in executing similar projects.
Guru Malladi, a Partner at Ernst & Young said it will be challenging for mid tier technology firms to take on bigger rivals. "A Rs. 5,000 crore project, for example, can never be delivered by a single player. But I do see an element of challenge for mid-size players who have so far not operated in the domestic market. Large players have to sometimes rely on small players but they may not see value in mid-size players in terms of cost or efficiency arbitrage," said Malladi.
"Globally, this kind of scale is not available anywhere, even if it may not be the largest in revenues," said Jeya Kumar, CEO, Patni Computer.
Like Hexaware, Patni is also chasing contracts in the domestic market as part of a consortium. "With the kind of large deal sizes we are seeing, you have to have a multi-vendor strategy," added Kumar. Apart from the government, Hexaware will focus on sectors like travel and transport, insurance, hospitality and logistics, and technology offerings across sectors.
According to Malladi, the mid size players have to be more strategic in their outlook using their skills to enter the market. Hexaware, along with others like Patni and MindTree are turning towards India, drawn by the large opportunity and significant growth potential.
The Indian government departments and other state owned firms will spend around $2 billion on IT during the next 12 months. Hexaware, MindTree and Patni are among the many mid-tier technology firms seeking to explore new business with an experienced partner.
For instance, Hexaware is pursuing some large deals as part of a consortium and several smaller ones on its own. Its strategy for the Indian market will be different from its strategy for overseas markets, said Hexaware's Vice Chairman and CEO, PR Chandrasekar.
"If we treat India as just another location for our services, it will not work. It will need fairly dedicated focus and some innovation on how we source talent and price our offerings. You also need to leverage your niche capabilities, especially if you are not one of the big players," said Chandrasekar, who was earlier with Wipro.
For putting better focus on the Indian market, companies such as Hexaware and Patni have recently formed focused business units. As Narendra Upasani heads Hexaware's India business, Deepak Khosla is responsible for growing Patni's revenues from the country.
Hexaware will work as part of a consortium because the large contracts in the government and public sector projects usually require the bidder to have a track record in executing similar projects.
Guru Malladi, a Partner at Ernst & Young said it will be challenging for mid tier technology firms to take on bigger rivals. "A Rs. 5,000 crore project, for example, can never be delivered by a single player. But I do see an element of challenge for mid-size players who have so far not operated in the domestic market. Large players have to sometimes rely on small players but they may not see value in mid-size players in terms of cost or efficiency arbitrage," said Malladi.
"Globally, this kind of scale is not available anywhere, even if it may not be the largest in revenues," said Jeya Kumar, CEO, Patni Computer.
Like Hexaware, Patni is also chasing contracts in the domestic market as part of a consortium. "With the kind of large deal sizes we are seeing, you have to have a multi-vendor strategy," added Kumar. Apart from the government, Hexaware will focus on sectors like travel and transport, insurance, hospitality and logistics, and technology offerings across sectors.
According to Malladi, the mid size players have to be more strategic in their outlook using their skills to enter the market. Hexaware, along with others like Patni and MindTree are turning towards India, drawn by the large opportunity and significant growth potential.
Entry Level Salaries Down by 20% in IT
Bangalore: One may boast of being employed in IT in the current scene, however they have to work twice as much for getting an interview and the annual salary is peanuts compared to earlier days. A worsening economic crisis, increased availability of skilled workers and lower demand for software services have brought down the entry-level salaries for IT professionals in the country by up to 20 percent, according to experts tracking the sector.
Every year, around 3,00,000 computer science and engineering graduates seek employment with hundreds of tech firms, including big names such as Tata Consultancy Services (TCS), Infosys and Wipro. This year, more than half of them were left unemployed because tech firms were already finding it tough to manage resources sitting on the bench, according to Economic Times.
"The entry-level salaries are down by at least 10-16 percent. Last year, a number of companies gave away offer letters but did not recruit. On top of that, there is a new pool of qualified professionals being churned out this year - all this has created an oversupply in the entry-level IT job market where salaries typically sway between Rs. 3 lakh per annum and Rs. 5 lakh on the higher side," said GC Jayaprakash, Principal Consultant of Stanton Chase International.
Until two years ago, almost all computer and engineering graduates were absorbed by India's outsourcing industry, comprising top tech firms such as TCS, Infosys, Wipro and many others. However, as customers delayed and shelved outsourcing projects, these tech firms also postponed campus hirings. Many students had to approach potential employers directly, since companies did not visit their campuses for placements. "We formed groups and toured companies, and agreed to settle at lower salaries because it's better to be employed at lower salary than having no job at all," said Srilekha Varma, who recently accepted a job offer from a Chennai-based IT firm specializing in banking software.
In a normal year, computer science graduates were offered entry-level salaries of Rs. 3.5-5 lakh. However, companies are now hiring freshers at Rs 1.7-3.5 lakh. However, human resources heads at tech firms, including Wipro, India's third-largest software exporter, say professionals have become more realistic about what they want from their employers. "I don't think salaries have come down, but the environment has indeed helped us in containing salary hikes," Pratik Kumar, Head of Human Resources at Wipro said.
But few companies have not forgotten the offers made. TCS said it would do new campus hiring in January 2010 and will honor all 24,000 offers made for financial year (FY09). "Around 1,800 graduates have joined us in second quarter (Q2) and another 8,000 will join in Q3, rest of the graduates will join based on the demand," a TCS spokeswoman said. Infosys said for FY10, it has made 20,000 campus offers and expects an 80 percent conversion rate i.e. 16,000 of these offers to join the company. "We are honoring all our hiring commitments," an Infosys spokeswoman said.
Every year, around 3,00,000 computer science and engineering graduates seek employment with hundreds of tech firms, including big names such as Tata Consultancy Services (TCS), Infosys and Wipro. This year, more than half of them were left unemployed because tech firms were already finding it tough to manage resources sitting on the bench, according to Economic Times.
"The entry-level salaries are down by at least 10-16 percent. Last year, a number of companies gave away offer letters but did not recruit. On top of that, there is a new pool of qualified professionals being churned out this year - all this has created an oversupply in the entry-level IT job market where salaries typically sway between Rs. 3 lakh per annum and Rs. 5 lakh on the higher side," said GC Jayaprakash, Principal Consultant of Stanton Chase International.
Until two years ago, almost all computer and engineering graduates were absorbed by India's outsourcing industry, comprising top tech firms such as TCS, Infosys, Wipro and many others. However, as customers delayed and shelved outsourcing projects, these tech firms also postponed campus hirings. Many students had to approach potential employers directly, since companies did not visit their campuses for placements. "We formed groups and toured companies, and agreed to settle at lower salaries because it's better to be employed at lower salary than having no job at all," said Srilekha Varma, who recently accepted a job offer from a Chennai-based IT firm specializing in banking software.
In a normal year, computer science graduates were offered entry-level salaries of Rs. 3.5-5 lakh. However, companies are now hiring freshers at Rs 1.7-3.5 lakh. However, human resources heads at tech firms, including Wipro, India's third-largest software exporter, say professionals have become more realistic about what they want from their employers. "I don't think salaries have come down, but the environment has indeed helped us in containing salary hikes," Pratik Kumar, Head of Human Resources at Wipro said.
But few companies have not forgotten the offers made. TCS said it would do new campus hiring in January 2010 and will honor all 24,000 offers made for financial year (FY09). "Around 1,800 graduates have joined us in second quarter (Q2) and another 8,000 will join in Q3, rest of the graduates will join based on the demand," a TCS spokeswoman said. Infosys said for FY10, it has made 20,000 campus offers and expects an 80 percent conversion rate i.e. 16,000 of these offers to join the company. "We are honoring all our hiring commitments," an Infosys spokeswoman said.
Saturday, October 24, 2009
Hiring Goes up In India
New Delhi: Hiring activities in the Indian companies rose by 4.1 percent in September with IT, BPO and real estate sectors turning bullish after a long time. The monthly 'JobSpeak index' by naukri.com stated an increase to 729 in September as compared to 701 in August this year.
"The secular trend is positive across sectors. Had it not been for an early festival season we may have seen further improvement in the index. The good news is that the IT and BPO sectors which are big employers especially at entry and junior levels seem to be in positive territory after a long time," said Hitesh Oberoi, COO and Director, Info Edge (owner of naukri.com).
The index moved from 715 in August to 719 in September. The companies' hiring activity saw a positive trend with 14 out of 41 sectors covered showing a double digit rise in hiring activities.
According to the report, IT-enabled Services (ITeS) and Business Process Outsourcing (BPO), real estate and retail sectors witnessed a significant push in September as compared to August.
The ITeS and BPO sector saw an increase of 18.3 percent in hiring activity in September, while real estate and retail witnessed a rise of 36.8 percent and 12.2 percent respectively
"The secular trend is positive across sectors. Had it not been for an early festival season we may have seen further improvement in the index. The good news is that the IT and BPO sectors which are big employers especially at entry and junior levels seem to be in positive territory after a long time," said Hitesh Oberoi, COO and Director, Info Edge (owner of naukri.com).
The index moved from 715 in August to 719 in September. The companies' hiring activity saw a positive trend with 14 out of 41 sectors covered showing a double digit rise in hiring activities.
According to the report, IT-enabled Services (ITeS) and Business Process Outsourcing (BPO), real estate and retail sectors witnessed a significant push in September as compared to August.
The ITeS and BPO sector saw an increase of 18.3 percent in hiring activity in September, while real estate and retail witnessed a rise of 36.8 percent and 12.2 percent respectively
Subscribe to:
Posts (Atom)
