Aviation biz to contribute 5% to rev in 3-5 years: Wipro

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Aviation biz to contribute 5% to rev in 3-5 years: Wipro

IT major Wipro is expecting business from its aviation vertical to take off, reports CNBC-TV18's Sunanda Jayaseelan.

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IT major Wipro is expecting business from its aviation vertical to take off, reports CNBC-TV18's Sunanda Jayaseelan. Last month, Wipro signed a 10-year agreement with GMR to provide it infrastructure and services for the Indira Gandhi International Airport at New Delhi. Now, it anticipates aviation to contribute over 5% of the group's overall revenues in the next 3-5y years.

Suresh Senapaty, CFO, Wipro, says, "IT spends maybe slow in coming in but our aviation business will ramp up over the next 3-5 years. They will be very substantial. We will see this business grow very large for us."

  A large part of those revenues, Wipro says, will come from modernisation of 35 non-metro airports across the country.  "Like we have used India as an incubation model for our IT services, we will use this consortium to address a market which we haven't been able to do so far. We will use it to tap projects globally."

GMR, while refusing to comment on the specifics of its partnership, says bidding opportunities will only pick up. A Subba Rao, CFO, GMR, says, "Activity will only pick up. We will of course be interested in all new airport bids which are going to come up."

On its part, GMR, which saw revenues from both Hyderabad and Delhi airports increase quarter-on-quarter by Rs 25 crore to Rs 371 crore as of this quarter, says that as far as it is concerned, the worst of the slowdown is over, and the sky, literally, is the limit with regard to growth in this vertical.