Privately held, Wipro Enterprise's Infrastructure Engineering company announced the acquisition of Pune-based Precision Automation and Robotics India (PARI) for an undisclosed sum. PARI, which is a leading provider of turnkey solutions in industrial automation and robotic automation with over 75 global customers, has facilities in Pune and Detroit. In automotive solutions, in particular, PARI has clients such as Tata Motors, Mahindra & Mahindra, Hero and global companies like BMW, Ford and Chrysler among others. It has also been an early mover and has a significant presence in electric vehicle space including the battery assembly.
"We ventured into the industrial automation business with the vision to be among the leading players globally. Over the last few years, we have built significant capabilities and partnerships. With PARI's addition to Wipro family, our combined strength makes us a complete industrial automation company capable of serving customers globally and offers significant growth opportunities in the future," said Pratik Kumar, CEO, Wipro Infrastructure Engineering.
With this acquisition, Wipro Infrastructure Engineering (WIN) will look at leveraging markets where the company has a presence through its hydraulics business for these new solutions. G Sundararaman, Senior Vice President, believes this acquisition will make the company a shop floor to top floor solution provider. Automation presence has to go hand in hand with digitalisation, we will be able to integrate Wipro's industry 4.0 solutions and build a digital layer, he said. Over 100 employees including the entire leadership team will transition into Wipro.
In FY20, Wipro Infrastructure did fairly well in global markets. However, the India market saw a dip in sales with the overall equipment market, barring agriculture, dropping by 25% on the back of delayed payments to contractors, liquidity crunch among NBFCs, etc. In its latest annual report, Wipro Enterprise had cautioned that Original Equipment Manufacturers (OEMs) looking at reduced production levels or planned shutdowns due to pandemic would heighten the uncertainty around the growth infrastructure engineering business in FY21.
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