BILLIONAIRE SUCCESS STORY: Azim Premji - Wipro

Born: July 24, 1946 - Bombay, India
Age: 62
Country Of Citizenship: India
Residence: Bangalore, India, Asia & Australia
Occupation: Businessman
Net worth: $18.5 billion USD
Fortune: Inherited and growing
Source: Software
Industry: Technology
Marital Status: Married, 2 children
Spouse: Yasmeen Premji
Education: Stanford University, Bachelor of Arts / Science

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When a government changes, it not only heralds a change in the destiny of a nation, but also brings in its wake massive changes in the lives of ordinary people. The Indian Congress party, which ruled India for 30 years since the country’s independence from Britain in 1947, was routed at the polls by Janata (People’s) party in the 1977 general elections.

When Janata Party came to power in India, it also meant a change in the life of Premji, who until then was struggling to make ends meet with his father’s edible oil business. The policy of the new Janata government that multinational should leave the country came as a blessing in disguise to Premji. When computer giant IBM was expulsed by the Janata government, its exit created a huge vacuum that needed to be filled by indigenous hardware production and software writing companies. Premji jumped at the opportunity to make the most of the new business opportunity.

Wipro organization that was then concentrating only on sales of raw materials, penetrated into the computer technology market, a turning point that catapulted Wipro into the pinnacle of silicon revolution, and made it a multi-national computer giant. During the last 26 years, the company has grown dynamically and this meteoric rise has astonished economists. Those were the days where only Brahmins and North Indians controlled the economy of the South. Premji who happens to be Muslim was the first South Indian who reversed this trend, so much so that it is not an exaggeration that no one from India has reach such heights that he scaled.

Premji’s father was s small vendor who made edible oil out of dry coconuts and catered to his immediate neighborhood. His slow growth resulted in the establishment of a company called Western India Vegetable Products and its various food products were sold within the country until his demise.

In 1966, Premji’s father suddenly passed away. Premji who was then studying engineering in Stanford University had to discontinue his studies and return to the shores. In the next 10 years, he continued his father’s footsteps, but showing streaks of rare business acumen.

During this 10 year period, he learnt all the fundamentals of doing business and this practical experience came in handy when in 1977 the change of government paved the way for his unprecedented growth. Premji’s approach to the human resource development was the single most important factor for his company’s extraordinary growth in the field of information technology at global level. During the last three decades, he has single-handedly developed a powerful base of human resource development in India.

Under normal circumstances, only ten percent of the workforce in a company would have the ability to perform independently; the rest would simply carry out the orders from above. In other words, the ten percent would have to ensure productivity from the ninety percent by hook or by crook. Thanks to the human resource development, the ten percent’s capability ensured maximum productivity from the ninety percent to laudable effect.

Premji has extended his workers and employees all the necessary benefits generously. Employees do have equity shares in the company. At present, there are 14,000 employees in Wipro, of which 10,000 are involved in the development of software programming and information technology. Premji makes it a point to recruit the best talents fresh out of the leading universities in India. Computer professionals, who formally worked for Wipro, have become budding industrialists in their own right. Premji does not lament when experienced professionals leave his organization to start their own business. He looks at it positively saying that these professionals do lend an invisible hand to the overall development of Wipro.

Though Infosis’s founding chairman Narayana Moorthy is Premji’s direct competitor, both remain very good friends, leading simple life in Bangalore. Despite being one of the richest men in the world, Premji still drives a Ford Escort and travels economy class during foreign jaunts.

His disciplined way of life is one of the reasons for his meteoric rise to fame. He seldom loses his temper. Once when he returned from a foreign visit, his driver failed to turn up at the airport to receive him. Any other person in his shoes would have become enraged at this incident and probably would have suspended the driver at once. But Premji is made of sterner stuff. He coolly hired a cab and reach office. He did not discuss this matter with anyone either. Much later, when a friend referred to this incident, Premji replied that erring workers should not be punished instantly. On the contrary they should be allowed to go wrong and then we must give them a fair chance to realize their folly and reform. This is the best approach. But, should they repeat the mistake again, we should not hesitate to discipline them, he added.

This is but one sterling example of his unique approach to his human resource development on a day to day basis. That is precisely the foundation of his success.

Reference
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Wikipedia
Wipro
Wipro Technologies Official Site
Azim Premji's profile at Wipro's official site
Forbes.com: Forbes World's Richest People
Profile on virtualbangalore.com
BBC News
Azim Premji Foundation
The Observer: The Story of Bangalore Bill

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