"The acquisition of SAIC's global oil & gas information technology practice will strengthen Wipro's existing energy business unit in becoming a long term strategic partner in our customer's transformation journey," Anand Padmanabhan, senior vice president, Energy, Natural Resources and Utilities SBU, Wipro Technologies said
Wipro Technologies, the global IT business of Wipro, a leading Information technology, consulting and outsourcing company, announced today that it has signed an agreement to acquire the global oil and gas information technology practice of Science Applications International Corporation (SAIC), for an all-cash consideration of around $150 million, subject to adjustments.
SAIC's global oil and gas information technology practice provides consulting, system integration and outsourcing services to global oil majors with significant domain capabilities in the areas of digital oil field, petro-technical data management and petroleum application services addressing the upstream segment.
As a result of the transaction, nearly 1,450 employees are expected to transition to Wipro across North America, Europe, India and Middle East.
Wipro's Energy, Natural Resources and Utilities Strategic Business Unit (SBU) is a high-growth SBU and this acquisition will further strengthen Wipro's leadership position. IT spend in this sector is expected to grow as customers increasingly look to grow newer streams of revenues, optimize their operational cost and find better ways to become environmentally conscious.
Anand Padmanabhan, senior vice president, Energy, Natural Resources and Utilities SBU, Wipro Technologies said, "Oil & gas companies are investing in the upstream business while looking at rationalizing cost through IT. The acquisition of SAIC's global oil & gas information technology practice will strengthen Wipro's existing energy business unit in becoming a long term strategic partner in our customer's transformation journey. SAIC's domain consultancy and competencies significantly enhances Wipro's capabilities in the upstream oil & gas space and further strengthens Wipro's position as an end to end leader in servicing customers."
"We are excited at the prospect of joining a company that has such a strong, strategic focus in multi-national commercial IT services," said Rex Ballard, senior vice president and general manager of SAIC's Commercial Business Services business unit.
Completion of the acquisition is subject to customary closing conditions and regulatory approvals.
In 2007, as many as eight funds were launched that planned to invest overseas. All of them have performed very badly since inception. On an average, they have given returns as low as 0.1%. When they were launched, we had pointed out that these funds were not worth it
Retail Indian investors who believed that investing in funds that buy overseas assets will yield higher returns would have lost their faith in these funds after a long wait. Only three to four funds among the lot of 15 funds have been able to give double digit returns.
Funds such as Birla Sun Life Commodity Equities Fund-GPM, Birla Sun Life Commodity Equities Fund- GA, Birla Sun Life Commodity Equities Fund-GMC, and Mirae Asset Global Commodity Stocks, have given double digit returns of 16.2%, 26.4%, 18.1%, and 11.6 % respectively. All the others have given either a single digit return or negative returns, worse than a decent bank deposit.
In 2007, as many as eight funds were launched that planned to invest overseas. How have they done? All of them have performed very badly since inception. These eight funds on an average have given returns as low as 0.1%.These include ICICI Prudential Indo Asia Equity Fund-Ret with 2.6% return, Birla Sun Life International Equity Fund-Plan A (-0.7% return); Birla Sun Life International Equity Fund-Plan B
(-1.6% return); Kotak Global Emerging Market Fund (0.4% return), Fidelity International Opportunities Fund (8.7% return); Tata Indo-Global Infrastructure Fund (-7.5% return) and BNP Paribas China-India fund with -3.4% return.
When they were launched, MoneyLife had pointed out that these funds were gimmicks. Our advice was to stay away from these funds. Sure enough, most of these global funds have reported poor returns since inception.
Global markets have been beset with many problems in the past three years-a financial meltdown in the US, debt troubles of European countries, Icelandic volcanoes, the fall and rise of commodity prices etc. Concerns over Greece's debt overshadowed the tottering finances of Portugal, Spain and Italy. Global funds have not been able to ride this volatility.
International mutual funds were launched with the objective to invest in non-domestic securities markets throughout the world. Investing in international markets provides greater portfolio diversification and let you capitalise on some of the world's best opportunities, was the rationale behind these funds.
Fund managers believe that if investments are chosen carefully, international mutual funds may be profitable when some markets are rising and others are declining. How far is it true?
Funds that put your money in other countries don't necessarily offer another round of diversification. In fact, markets in countries around the world move in sync. In 2009-2010 (financial year), the Sensex was up by 77% while the MSCI Emerging Markets Index was up 74%. In 2010-2011, the Sensex was up by 10%, whereas the MSCI index was up by 14%. Non-correlated market movement is not easy to find. Indeed, this idea is a myth. This is because an enormous pool of global capital is sloshing around the world looking for a slightly higher return. Besides, funds are known to chase hot ideas and a hot market may burn their performance-sorry, your returns. You are exposed to all kinds of risks unique to different countries, plagued with their own set of issues.
Moneylife pointed out in an article (dated 3 June 2010) saying "Global funds are pure fads. When the commodity markets are shooting up, fund companies will launch commodity-focused equity funds. When the Chinese market is hot, they will launch a China fund. Take, for example, the launch in December 2007 of the Franklin Asian Equity Fund, when the Asian markets were hot property among fund managers, what with the abundance of decoupling and other hackneyed theories. Since inception, the Fund has given a 5.3% return. There will also be one or two funds that do well-whether out of luck or skill. But there is little logic in investing in foreign funds-as a category they are worth the risk.
Why are we being fed with increasing amounts of neurotoxins in our diet, in the name of processed foods, when the rest of the world is moving away from them? Pepsi and Coke will actually share the World Cup win on Saturday, as India and Sri Lanka fight for the crumbs
As we head in for the finals of the World Cup 2011, it is increasingly becoming apparent that the game is not just between India and Sri Lanka, but largely between Coca-Cola and Pepsi Cola. This in itself would not have been a problem, sports need sponsors, and cricket has always had a long list of entities waiting to pay the bill.
How many of us can forget the fact that Benson & Hedges were the original sponsors here, and subsequently for some time Wills paid some of the bills too, until globally tobacco companies were prevented by law from sponsoring sports. The rest of the world had by then banned tobacco advertising in sports, but India was amongst the last bastions to fall, and given half a chance, subliminal and crony as well as covert advertising for tobacco products still continues- awards for bravery, for example, as well as ranges in clothing and soaps being a common subterfuge.
But face facts, smoking is increasingly becoming socially unacceptable in India, and about time too.
How long before this good sense reaches those who make and implement our laws, as far as carbonated coloured sweetened beverages using chemicals for constituents which are certainly not good for our health are concerned? To ban fizzy colas/orange/lemon and clear flavoured bottled & fountain served waters with bubbles in them (also called "soft drinks") in India? By rights, this is overdue, and should have happened yesterday, as is already happening in the developed countries we look up to in so many other ways. If it has not, then it is simply because the machinery that propels this momentum forward is huge, and comprises of not just the manufacturers but also their advertising companies, their PR companies, their bought out medical associations, and the whole nine yards as far as the rest of them are concerned, anybody who would dare to try and stand up against them.
Except some of us, who seek information for the larger public good, and when faced with impediments-sink our teeth in even deeper. And therein lies a tale which shall evolve with time.
Experience has taught many of us that when those in power take extremely hyperactive steps to hide information, then it becomes all the more important to try and find out what they are hiding, since if this information was not likely to cause any problems to the larger good-then why would they want to hide the truth? To give a simple example, when I asked a simple question relating to the Commonwealth Games way back in early 2006, on how much did they actually spend on taking some actors and dancers to Melbourne, and got stonewalled at every step- that's when I realised that there was probably something hidden which was causing the people who took the effort to hide it some concern-so it was worth going after it.
That's what got the nation this judgement: http://www.indiankanoon.org/doc/465885/
Which subsequently opened the door for the accounts and numbers, as well as skeletons and scams, to come tumbling out in what is known as the "CWG scam".
The word being sought, if I remember my school maths correctly, is and was "fulcrum". And now with the help of Moneylife as well as others, I seek the fulcrum that will help me bust the great Coke & Pepsi game in India, which also goes by the names Aspartame, NutriSweet and Equal, amongst others.
If you have seen working terriers chasing small animals you will realise the whole concept-they don't want to eat that animal, they just want to know what that animal is up to-and if it appears to be damaging things, like rats and other animals do, then to get it out of the way. Sometimes they want to scare it so that it heads into a trap. Or moves out of its safe spot. Let's go back to these terriers. I quote an example: "Working terriers (Hunting types): Still used to find, track, or trail quarry, especially underground, and sometimes to bolt the quarry."
In other words, just the fact that somebody has started sniffing around is enough to push them to react. If we want to reach something, then we have to not just sniff it out-we have to be like terriers.
Which is what is happening as I start a new search and hunt for how this amazing drug, called "aspartame", has entered India's statutes as a sweetener instead of as a neurotoxin, and has started replacing real and simple sugar in everything from "soft drinks" to sweetmeats, biscuits, bakery products and even traditional products like halwa. All in the name of lower cost and higher sweetness. While trying to convince us that there is no difference.
But there is a big difference. Sugar in its various natural forms simply makes things sweeter, for natural or other reasons, and doesn't cause much harm beyond causing the obvious side effects of consuming too much sweet-which we already know about. Aspartame, on the other hand, even in extremely minute quantities, well below the levels found in a single can of Coke or Pepsi, diet or otherwise, is known to cause not just common ailments like headaches, dizziness, slurred speech and confusion. On the larger scale, however, it causes a vast variety of serious diseases-not the least of which are some forms of cancer, as well as serious issues for pregnant women, babies, chronic fatigue syndrome and brain damage as well as tumours therein.
As a matter of simple fact, a large number of Gulf War returnees (from the Kuwait-Iraq conflict) were diagnosed as having suffered from major neurological disorders, traced directly back to consuming litres and litres of "diet" soft drinks which had, before that, been transported and then lying in the hot conditions of the desert.
It is interesting to note that the summer is when the push to sell more cold drinks is highest in India. And that's also when truckloads of the stuff roll across, with the "soft drinks" undergoing a fair amount of exposure to extremely hot weather, which incidentally is one more issue with aspartame. You see, as temperature changes, aspartame changes its chemical composition, radically. So, that, as well as a few other reasons prompted me to file a fairly simple RTI (Right to Information) Application to the Ministry of Processed Foods in Delhi. Again, very close to where I live, walking distance actually.
Within a few days of my filing an RTI application with the Ministry of Processed Foods here in Delhi, even before I've got a formal response from them, I have received:
1) Phone calls from a PR company claiming to represent a company making a diet soft drink, lately advertising a lot as "University of this and that".
2) Veiled threats on social media from unknown entities whose pages on carbonated waters I have joined and commented on.
3) The usual bunch of evasive non-RTI type responses from the Ministry which are designed to deflect all but the most hardcore of RTI applicants.
4) And most interestingly, a huge collection of unasked for literature on the benefits of aspartame, AND a hamper full of soft drinks as a gift from somebody who did not leave a visiting card.
Aspartame started life as a new chemical warfare agent developed and used by the United States Armed Forces. It is apparently now an agent for infiltrating the Indian food chain. My series of RTI applications with the Government of India is going to try to find out how something like this became a legalised food component.
Meanwhile, it would be interesting to start getting certification from our halwais and bakeries on whether they use sugar or aspartame or other branded sweeteners that are actually carcinogenic chemicals, since we already knows what goes into our Coca Cola and Pepsi Cola, Diet and otherwise. It would also be interesting to ask our cricketers and others who endorse these soft drinks on what their families and children drink. I know-I once had this discussion with Kapil Dev, in the days when he used to endorse Thums Up-and he hasn't endorsed a cold drink since.