Wipro seeks buyer for French unit

Wipro Infotech, India's third largest provider of software services, is seeking a buyer for its Sophia Antipolis centre in France, as efforts to shut down the unit have run into opposition.

''We continue to look favourably on any proposal that we may get from interested parties willing to continue part or totality of the activities in the Sophia Antipolis centre,'' Pramod Idiculla, general manager, strategy, Wipro Technologies, said on Friday.
 
''No decision has been taken,'' he added. ''The consultation process is on with Works Council in Sophia Antipolis and employee representatives and a final decision on this will be taken only after that.''
 
Christopher Martinoli, country head for France at the company's Wipro Technologies business, said on Thursday, ''We have been always looking for buyers and we will continue to look favourably on any proposal that we may get from interested parties willing to continue part or all of the centre's activities.''

The facility, one of the Bangalore-based company's five offices in France, employs about 60 engineers. It has told the French government that it will try to redeploy workers from the facility and assist them in seeking jobs outside the company, he said.

The semiconductor design centre at Sophia Antipolis came to Wipro through the acquisition of Austrian firm New Logic in 2005. The centre builds components and connectivity-based semiconductor intellectual property (IPs) in wireless and wire line segments.

The relatively weak market has forced Wipro to take a re-look at its semiconductor IP portfolio. As a result, it has started exploring options to shut down or sell off the design centre, a move that has raised political issues in France. 

Wipro has reiterated to the French government its commitment to help reduce the impact of any potential redundancies. ''Our proposed social measures will provide significant support and time to the employees and include in particular, outplacement assistance through a professional agency and assistance for redeployment, training and entrepreneurial activities,'' Idiculla added.

The French industry minister last week criticised Wipro's move to close the centre after taking a 5 million euro research tax credit from the government. The issue had snowballed into a major controversy, with the involvement of the local French government officials.