This week the Family Business Office, for its twenty third edition of Focus On World Family Business Leaders looks further afield to one of the wealthiest of family business owners in India – renowned tycoon Azim Premji.
Azim Premji, in full Azim Hasham Premji, (born July 24, 1945, Bombay , India), is an Indian business entrepreneur who served as chairman of Wipro Limited, guiding the company through four decades of diversification and growth to emerge as a world leader in the software industry. By the early 21st century, Premji had become one of the world’s wealthiest people.
In the year that Premji was born, his father founded Western Indian Vegetable Products Ltd., which produced vanaspati, a widely used hydrogenated shortening. Three years later, colonial India was partitioned into mainly Hindu India and Muslim Pakistan, but the Premjis, a Muslim family, chose to remain in India. In 1966, just before Premji was to complete his degree in engineering at Stanford University, his father died unexpectedly. Postponing his graduation, he returned to India to take the reins of the family business and immediately began to diversify, delving into consumer products such as soap, shoes, and lightbulbs, as well as hydraulic cylinders.
Premji renamed the company Wipro in 1977, and in 1979, when the Indian government asked IBM to leave the country, he began to steer the company toward the computer business. Wipro established a number of successful international partnerships in the 1980s to help it build computer hardware for sale in India. It was software development, however, that made the firm so lucrative. Premji built a reputation for hiring the best people and providing them with unparalleled training, and he took advantage of India’s large pool of well-educated software developers who were willing to work for much less money than their American counterparts. Wipro concentrated on developing custom software for export, primarily to the United States.
Thanks to substantial increases in technology stocks, Wipro’s value skyrocketed in the late 1990s, and Premji became one of the richest entrepreneurs in the world—a position he retained well into the 21st century. The success of both the company and its chairman was more than merely the result of outside forces’ inflating the value of the company, however. Premji had boldly broken with tradition by transforming Wipro into an information technology powerhouse with a solid footing in foreign markets at a time when most fortunes in India were based on ownership of land and factories used to produce domestically consumed goods. In 1999 Premji officially completed his degree from Stanford through a distance-learning arrangement.
Despite his vast personal wealth, Premji continued to be recognized for his modesty, lack of extravagance, and charity. In 2001 he established the non-profit ‘Azim Premji Foundation’, through which he aimed to improve the quality of elementary education in rural regions throughout India. By the end of the first decade of the 21st century, the foundation had extended computer-aided education to more than 16,000 schools, with child-friendly content increasingly available in local languages. Premji’s reputation remained that of a highly ethical entrepreneur whose operation served as a model for other Indian firms.
( All factual and statistical information presented in this blog has been obtained from an extract of articles found on www.britannica.com ) Follow us on our Facebook page and Family Business Office website at www.familybusiness.org.mt
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