Wipro will separate its
core information technology business from its consumer care and lighting, infrastructure engineering and medical diagnostics businesses.
The non-IT businesses will be folded into a privately held company, called Wipro Enterprises Ltd, while the IT business, which accounts for 86 per cent of revenue and 94 per cent of operating profit will remain within publicly traded Wipro Ltd.
Chairman Azim Premji said the demerger will enhance shareholder value and "provide momentum for growth." He will remain the chairman of Wipro and assume the position of non-executive chairman of Wipro Enterprises.
{blurb}The demerger is expected to take effect next financial year, subject to regulatory approvals.
"Creating a technology-focused company will allow us to better serve the needs of our customers, and accelerate investments necessary to capitalize on market growth opportunities," T.K. Kurien, chief executive of Wipro's IT business, said in a statement.
India's third-largest outsourcer, Wipro, has warned of stalling growth in its core software services business with global clients wracked by uncertainty. The company is scheduled to report its quarterly earnings on Friday.
Wipro shares were trading 2.84 per cent higher at Rs 360.75 on the Bombay Stock Exchange in late afternoon trade.
With inputs from Associated Press 
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