In 1966, a young Azim Premji found himself at a life-altering crossroads. At just 21 years old, he was summoned back to India due to the sudden and untimely death of his father, Mohamed Premji. The elder Premji had established Western Indian Vegetable Products, a company best known for producing hydrogenated cooking oil under the brand names Dalda Ghee and Sunflower Oil. Azim, then a Stanford University student, had to take the reins of the family business, a challenging task for someone so young. However, Azim Premji had a vision that would soon turn this regional cooking oil company into a global IT behemoth.
Early Days: Expanding Horizons
When Azim Premji first took charge of Western Indian Vegetable Products, it was primarily focused on manufacturing cooking oil. Despite his lack of experience, Premji exhibited remarkable foresight and quickly diversified the company’s product portfolio. Under his leadership, the business expanded into areas such as bakery fats, soaps, baby toiletries, lighting products, and hydraulic cylinders. This early diversification was a sign of Premji’s willingness to innovate and adapt, qualities that would define his career in the years to come.
However, a significant turning point came in 1977 when the Indian government, led by Morarji Desai, introduced new foreign direct investment (FDI) rules. These rules caused global IT giant IBM to exit India, leaving a gap in the country’s technology market. Azim Premji, ever the visionary, saw this as an opportunity. He recognized the potential for India’s nascent IT industry and decided to shift the focus of his company towards this burgeoning sector.
The Birth of Wipro
In 1980, Premji made a bold move. He changed the name of Western Indian Vegetable Products to its short form, Wipro, marking the company’s entry into the technology space. He wasted no time assembling a team of IT experts and set the stage for Wipro’s transformation into an IT company. Wipro Products Limited was officially born, and it would soon become synonymous with innovation in India’s IT industry.
One of Wipro’s first significant ventures in the IT field was its collaboration with Sentinel Computer Corporation, a U.S.-based company. This partnership led to the development of Wipro’s first minicomputer, the Wipro Series 86, built on Intel’s 8086 chip. This groundbreaking project was completed in a lab at the Indian Institute of Science (IISc) in Bangalore, marking Wipro’s entry into the Indian tech landscape. By 1984, Wipro had achieved 100 installations of the Wipro Series 86, solidifying its position as a major player in the IT hardware space.
Wipro’s Shift to Software
Wipro’s success in hardware was only the beginning. In 1987, Wipro launched the Wipro 386 minicomputer, which was based on Intel’s 80386 microprocessor and the UNIX System V operating system. At the time, Wipro became only the second company in the world to integrate UNIX with Intel microprocessor-based computers, a testament to its pioneering spirit. However, the landscape of the Indian IT industry was changing rapidly. Joint ventures between Indian computer companies and multinational corporations grew from 11 in 1985 to 35 in 1988, intensifying competition in the hardware sector.
Azim Premji, ever the strategic thinker, realized that Wipro could not rely on hardware alone. Recognizing the growing demand for software solutions, he made the pivotal decision to shift Wipro’s focus toward software development. In 1990, Wipro became the first Indian company to set up offshore research and development (R&D) centers dedicated to IT development. This move laid the foundation for Wipro’s future dominance in the global IT services industry.
Global Expansion and Recognition
By the late 1990s, Wipro had become one of India’s leading IT companies, exporting software to global clients such as Sun Microsystems, Intel, and General Electric. In 1998, Wipro became the second-largest software exporter in India. The company’s growth trajectory continued unabated, even in the face of the dotcom crash of 2000. In October 2000, Wipro was listed on the NASDAQ, making it one of the few Indian companies to achieve such a distinction. At its peak, Wipro’s market capitalization was three times that of its closest competitor, Infosys.
As Wipro scaled new heights, its financials reflected its success. By 2004, the company had joined the prestigious billion-dollar revenue club, posting revenues of ₹5,881 crore and a profit of ₹1,032 crore. A significant portion of its revenue—74%—came from global IT and services, with the remaining coming from its domestic and APAC markets as well as consumer businesses. Wipro had truly become a global name in IT services, and its success was a source of immense pride for India.
Continuing Innovation
Azim Premji’s drive for innovation did not stop there. In 2011, Wipro, in collaboration with the Indian Space Research Organization (ISRO), launched India’s fastest supercomputer at the time, the SAGA-220. This accomplishment underscored Wipro’s commitment to staying at the forefront of technological innovation. The company continued to expand its global footprint, making a series of strategic acquisitions, including Promax Applications in 2012, Designit in 2015, and Appirio in 2016.
Wipro’s financials continued to impress. By 2017, the company’s revenue had skyrocketed to ₹55,417.9 crore, cementing its position as one of the largest IT services companies in the world. Wipro’s global presence also grew significantly, with the company establishing operations in 65 countries and employing over 230,000 people.
A Global IT Leader
Today, Wipro is the world’s 7th largest IT services company, with a market capitalization of ₹3,00,610 crore. In the last financial year, the company posted revenues of ₹89,760 crore and a profit of ₹11,112 crore. Wipro’s journey from a cooking oil company to a global IT powerhouse is a remarkable testament to the vision and leadership of Azim Premji.
A Legacy of Philanthropy
While Wipro’s growth and success are impressive, Azim Premji’s legacy extends far beyond the realm of business. For five consecutive years, Premji was India’s richest man and the world’s fifth richest person, with a net worth of ₹1,50,000 crore. However, in a move that shocked the world, Premji chose to donate 50% of his wealth to charity, making him one of the most generous philanthropists in history.
Premji’s commitment to philanthropy is a reflection of his belief that wealth should be used for the betterment of society. His charitable foundation, the Azim Premji Foundation, focuses on improving education in India, and he has pledged to donate more of his fortune in the coming years.
Conclusion
Azim Premji’s journey from running a regional cooking oil business to building one of the world’s largest IT companies is a story of vision, innovation, and resilience. Under his leadership, Wipro transformed into a global IT leader, shaping the future of India’s technology industry. Premji’s philanthropic efforts further demonstrate that his legacy is not just about building a successful business but also about making a positive impact on the world. His story continues to inspire entrepreneurs and business leaders around the globe.