HCL Tech overtakes Wipro to become India's third largest IT company

• Image Credit: Google

• Aug 31, 2022 | Dhupali Das

It's interesting to note that Wipro was not initially an IT company...

Digital Desk: HCL Technologies, owned by Shiv Nadar, has once more defeated Wipro, this time in terms of market capitalization. As per reports, HCL Tech has generated better revenues than Wipro for the past couple of years but is still trailing in terms of market value. As per reports, HCL Tech has surpassed Wipro in terms of revenue, earnings, and market capitalization.

With a comfortable margined market valuation of over 2.54 trillion INR, HCL Tech outpaces Wipro. The market value of Wipro is 2.26 trillion Indian rupees. If we look at the share prices of both IT businesses, we can see that they have both fallen dramatically over the past year. While the share price of HCL Tech has decreased by 20.76%, that of Wipro has decreased by 35.58%. One of the causes of the decline in Wipro's market cap may be this significant decline in share prices.

It's interesting to note that Wipro was not initially an IT company. Yes, you heard right. The business was founded in 1945 under the name Western India Vegetable Products Limited, later shortened to Wipro. Vegetable and refined oils were produced by Wipro for the first few decades.

A tectonic shift to information technology was seen in 1977, roughly a decade after Azim Premji took over the reins of the company from his father. The company's name was changed from Western India Vegetable Products Limited to Wipro Products Limited on June 7th, 1977. The name was changed again in 1982, from Wipro Products Limited to Wipro Limited.

In contrast, HCL Enterprise was founded in 1976. HCL Technologies, which was originally the research and development division of HCL Enterprise, emerged as a subsidiary in 1991.