Wipro Consumer forays into food, spices; acquires Kerala’s Nirapara brand

Wipro Consumer Care and Lighting, which is a part of Wipro Enterprises, has entered the packaged food and spice segment after acquiring Kerala's traditional food brand Nirapara. The acquisition of Nirapara comes after Wipro’s announcement of its foray into the food business in India in August 2022. The Nirapara acquisition could help it become a significant player in the snack food, spices, and ready-to-cook market.

Started by KKR Karnan in 1976, Nirapara is one of the largest quality food brands in Kerala, and its distribution chain covers over 1,50,000 retail outlets via 500 distributors. The companies have not disclosed the financial cost of the entire deal so far.

India's spice market is primarily dominated by companies like Hindustan Unilever Ltd, ITC Limited, MDH, and Everest Food Products, among others. The overall industry is estimated to be worth ₹80,000 crore, while the branded market is worth ₹30,000 crore. 

Wipro Consumer Care & Lighting CEO Vineet Agrawal Nirapara is the company’s 13th acquisition. “(This) gives us a clear foothold in the spices and ready-to-cook segment. We are excited to enter a segment, which is expected to grow rapidly.” 

Wipro Consumer Care food business chief Anil Chugh said spices are core to Indian cooking and the mix changes from region to region with strong regional preferences. "There is a huge opportunity in this space for shifting consumers from unorganised to organised market by offering authentic, pure and trusted spice mixes.”

Wipro Consumer in its FY 2021-22 annual report had said that it would foray into the consumer packaged goods (CPG) segment, targeting automation solutions in end-of-line packaging, palletisation and warehouse automation. "We are investing in our manpower resources to cater to the growth and in expanding our assembly integration facilities at our Pune factory."

The company caters to Indian household business (including personal care), international home & personal care and the Indian office solutions business (lighting, seating and switches). Its businesses include personal wash products, skincare products, male grooming products, toiletries, wellness products, household products, electrical wire devices, domestic and commercial lighting and modular office furniture. 

Wipro Consumer Care's revenue stood at ₹8,635 crore in FY22, a growth of 2.8% YoY. As per the company's FY22 annual report, its International business -- in countries like Malaysia, South Africa and Middle East markets -- accounted for 52% of its total revenue in FY22. In India, Wipro's consumer business recorded a 2-year CAGR growth of 12.3%. Its flagship Santoor brand crossed its highest-ever market share of over 10% in Jan-Mar’22. However, the company saw slowing growth in rural India in FY22, which hurt its revenue. 

In FY2, Wipro Consumer Care's office solutions business was restructured as a commercial and institutional business, in which the seating solutions have been merged. The company's lighting business grew 17.8% and added 58 customers across the smart and connected lighting segment in the institutional business. The company's domestic lighting & switches segment grew 8.6% in FY22.

The company caters to Indian household business (including personal care), international home & personal care and the Indian office solutions business (lighting, seating and switches). Its businesses include personal wash products, skincare products, male grooming products, toiletries, wellness products, household products, electrical wire devices, domestic and commercial lighting and modular office furniture. 

Wipro Consumer Care's revenue stood at ₹8,635 crore in FY22, a growth of 2.8% YoY. As per the company's FY22 annual report, its International business -- in countries like Malaysia, South Africa and Middle East markets -- accounted for 52% of its total revenue in FY22. In India, Wipro's consumer business recorded a 2-year CAGR growth of 12.3%. Its flagship Santoor brand crossed its highest-ever market share of over 10% in Jan-Mar’22. However, the company saw slowing growth in rural India in FY22, which hurt its revenue. 

In FY2, Wipro Consumer Care's office solutions business was restructured as a commercial and institutional business, in which the seating solutions have been merged. The company's lighting business grew 17.8% and added 58 customers across the smart and connected lighting segment in the institutional business. The company's domestic lighting & switches segment grew 8.6% in FY22.