Wipro Consumer Care and Lighting, part of Wipro Enterprises, entered the packaged food and condiments segment after acquiring traditional Kerala Nirapara food brand.
The acquisition of Nirapara comes after Wipro announced its entry into the food business in India in August 2022. The acquisition could help Nirapara become a major player in the snack, condiment and ready-to-cook market.
Established by KKR Karnan in the year 1976, Nirapara is one of the highest quality food brands in Kerala, its distribution chain covers more than 150,000 retail outlets through 500 distributors. The companies have yet to disclose the financial cost of the entire deal.
The Indian spice market is mainly dominated by companies like Hindustan Unilever Ltd, ITC Limited, MDH and Everest Food Products. The total value of the industry is estimated at Rs. 80,000 crore while the branded market is valued at Rs. 30,000 crore.
Wipro Consumer Care and Lighting CEO Vineet Agrawal Nirapara is the company's 13th acquisition. "(This) gives us a clear foothold in the condiments and ready-to-cook segment. We are excited to enter a segment that is expected to grow rapidly."
Spices are central to Indian cuisine and the mix changes from region to region with strong regional preferences, said Anil Chugh, head of food business at Wipro Consumer Care. By providing real, genuine, and reliable spice blends, there is a significant opportunity to move customers from an uncontrolled to a regulated market.
Wipro Consumer said in its fiscal year 2021-22 annual report that it will enter the consumer packaged goods (CPG) segment, targeting automation solutions in end-of-line packaging, pallet racking and warehouse automation. “We are investing in our manpower resources to cater for growth and expanding assembly integration facilities at our factory in Pune.”
The company serves the Indian domestic business (including personal care), the international home and personal care, and the Indian office solutions business (lighting, seating and switches). Its business includes personal laundry products, skin care products, men's care products, toiletries, health care products, household products, electrical wiring, home and commercial lighting, and modular office furniture.
Wipro Consumer Care's revenue was INR 8,635 crore in FY22, up 2.8 percent YoY. According to the company's annual report for fiscal year 22, its international business, in countries such as the Malaysian, South African and Middle Eastern markets, accounted for 52 percent of its total revenue in fiscal year 22. In India, the Wipro's consumption posted a two-year compound annual growth increase of 12.3 percent. Its flagship brand, Santoor, surpassed its all-time market share of more than 10 percent from January 22 to March 22. However, the company saw a slowdown in growth in rural India in fiscal year 22, hurting its revenue.
In the second fiscal year, Wipro's office solutions business was restructured as a commercial and corporate business, integrating seating solutions. The company's lighting business grew 17.8 percent and added 58 clients in the smart and connected lighting segment in the institutional business. The company's domestic lighting and switches segment grew 8.6 percent in fiscal year 2022.
Also Read: Instagram new feature shows stories to only those who share their own stories