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Acer to open full-fledged India subsidiary

Acer will open a full-fledged national subsidiary office in India. Wipro will continue to distribute and service Acer systems.

Wipro will acquire Acer's 45 per cent financial equity in the joint venture company, Wipro Acer Limited, and will merge this subsidiary company into Wipro Infotech Systems and Services Group.

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"Both Wipro and Acer recognise that the computer industry needs continual improvement in operating efficiencies," said Arun K Thiagarajan, vice-chairman, Wipro Limited.

"This strategic step of removing the overhead of a legal joint venture entity will enable delayering of our operating structure, and result in substantial cost benefits for our customers," he said.

"The decision by both Acer and Wipro has been made cognisantly at a time when the JV performance is at its peak," said York Chen, managing director, Acer Computer International, Singapore.

"We wish to work with Wipro and set in place our long-term plans in India. Wipro as our business partner will continue to strongly focus on Acer products," he said.

Wipro Acer has been the marketing, manufacturing and logistics arm of Wipro Infotech for the supply of Acer and Wipro SuperGenius Desktop PCs, Acer Servers, and Acer Notebooks.

In 1998-99 Wipro Acer's shipments exceeded 55,000 units. Wipro Acer has shown a growth of over 50 per cent. This is significantly above the industry average.

In line with Acer's long-term goal of having a direct market presence in high-growth markets, Acer will set up operations in Bangalore, extending to brand building, technical support and logistics.

Arun Sinha will head Acer India as managing director and Bharath Gopalakrishnan as deputy managing director.

Arun K Thiagarajan added, "This change in relationship will not in any way affect our commitment to our customers. As an Acer Strategic Business Partner, Wipro and its channel partners will continue to distribute and provide support to Acer products in India."

Acer Computer International is a part of the $6.5 billion Acer Group, the world's third largest PC manufacturer. Wipro Infotech is a part of the Rs 18,300 million Wipro Corporation operating in services, technology products and consumer products.

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