Wipro, India's third-largest software services exporter, continues with its acquisitions in the non-IT space, which currently contributes about 25 percent of the group's revenues.
Its infrastructure engineering division has signed a deal to acquire a majority stake in a Brazil-based hydraulic cylinder manufacturer R.K.M.Equipamentos Hidráulicos Ltd, Wipro said in a statement to the stock exchanges. The financial or stake details are not disclosed.
Wipro, which mainly focuses on software, said the acquisition would be a part of its infrastructure engineering division, and would be completed during the quarter.
Wipro Infrastructure Engineering Ltd offers precision-engineered hydraulic cylinders, components and solutions and truck hydraulics components to original equipment manufacturers in the infrastructure and related industries globally. The Brazilian firm is a Tier-1 supplier to global OEMs of construction and earth moving machinery, material handling equipment, forestry equipment, heavy and medium commercial vehicles, among other industries, across Asia and Europe.
Wipro Infrastructure Engineering President Pratik Kumar said, "Brazil is an extremely attractive market for us, driven by a high growth economy and huge investments in infrastructure over the next few years. RKM provides us an ideal platform to expand and extend our portfolio of offerings in the Brazilian market and well as rest of the Latin America.
The division contributes less than 10 per cent to Wipro's total revenues currently. The total revenue of the company for the FY11 was Rs 31,099 crore, of which IT services businesses constituted Rs 23,485 crore.
In 2006, Wipro Infrastructure Engineering had acquired 100 per cent stake in Sweden-based Hydrauto Group AB (now Wipro Infrastructure Engineering AB) for about $31 million. In 2008, Wipro had bought100 per cent stake in Aquatech Industries India Pvt. Ltd. for an undisclosed amount. However, the group plans to exit this business, according to a recent report.
The other non-IT businesses include Wipro Consumer Care and Lighting, eco-energy and hardware products.