Wipro has ditched its non-IT businesses.
The Indian outsourcer announced on Thursday that it would be divesting itself of its consumer care and lighting unit, its infrastructure engineering business, which includes it hydraulics and water operations, and its medical diagnostic product and services business, which is run as a strategic joint venture.
All three will be spun off into a separate company called Wipro Enterprises, which will be unlisted.
There will no management changes, and all execs in charge of the units being demerged will remain in place. Azim Premji, Wipro's executive chairman, will also become non-executive chairman of Wipro Enterprises.
The IT businesses' contribution to the company's bottom line is substantial: 86 percent of Wipro's revenues and 94 percent of its profit is brought in by IT.
The demerger is set to be concluded by the next fiscal year, and is subject to Indian court approval and regulatory approvals.