With the offset policy in defence all set to kick off, Wipro is betting big on the vertical even announcing a dedicated manufacturing facility in Bangalore to ramp up revenues. The company's infrastructure and engineering arm has set up a dedicated manufacturing unit near the Bangalore International airport with an investment of USD 8-10 million.
This unit will undertake precision equipment manufacturing amongst others. For this the company has already signed an agreement with EADS' subsidiary CESA.
Wipro is hoping the defense and aerospace vertical will be able to contribute 25% of Infrastructure Engineering's overall revenues over the next 4-5 years.
With an eye on the future, Wipro is streamlining oparations including looking to sell off its water bsuiness so that it can focus on fast growing verticals like defence and avaition. On its part, the management does admit to being in talks with potential buyer
Presently 50% of Wipro Infra Engg's revenues come from India and 35% from Europe and they are actively looking at expanding into the US and doesn'Kumar says they t rule out an acquisition over the next 12-18 months in the US to help it get a toehold