Wipro Consumer Care and Lighting is gearing up for its next phase of expansion with a war chest of six thousand to seven thousand crore rupees. The company’s chief executive, Vineet Agrawal, said this fund, along with the ability to raise additional debt if needed, will support an aggressive acquisition strategy focused on high margin categories.
The company, known for brands such as Santoor and Yardley, is currently in discussions with several regional players. Agrawal said the focus is on brands in spices and personal care that can help the company strengthen its product range and tap into faster growing, higher margin segments. He added that the business benefits from strong cash reserves since “because the family doesn’t take out dividends, our war chest is very good, and our treasury is big. So, if we want to acquire, we have enough money even without debt.”
Wipro Consumer typically evaluates three to four potential acquisition targets at a time. However, Agrawal said the company will avoid sectors with inherently low margins, despite strong consumer demand. He pointed to southern spice brands as an example of categories where margins remain thin.
Wipro Consumer sees meaningful potential in new age categories such as liquid detergents, fabric conditioners, body washes and fragrances. These segments are expanding faster than traditional categories and offer better margin prospects. Acquiring regional brands is also a faster route to growth because they enjoy strong local loyalty, making integration easier than building new brands from the ground up.
Over the years, Wipro owned by the Azim Premji family has completed nearly two dozen acquisitions in India and overseas. These include energy drink Glucovita, Kerala based food brands Nirapara and Brahmins, Chandrika soap and Yardley. The consumer business was separated from the larger IT entity in 2013 and continues to focus on strengthening its presence across personal care and packaged foods.
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