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Looking at areas in FMCG complementary to its existing business

Bangalore July 19

Wipro Ltd plans to pursue buy-outs of "under-marketed brands" to strengthen the portfolio of its Consumer Care & Lighting business.

"We will continue to look out for `under-marketed brands', where we think we can add value," said Mr Vineet Agarwal, head of Wipro's Consumer Care & Lighting business.

The company is looking at areas in FMCG that are complementary and related to its existing business, he said without divulging further details.

Previous acquisitions

In May, Wipro acquired the switch business from North-West Switchgear Ltd for Rs 105.3 crore and an earn-out of Rs 20 crore to be decided and paid in future. The company has also entered into a non-compete agreement with the sellers of "North-West" brand for a cash consideration of Rs 3 crore.

North-West, with a turnover of Rs 38 crore, is the third such "under-marketed brand" being acquired by Wipro in the recent years, Mr Agarwal said.

Earlier, the company had acquired the under-marketed brands such as Glucovita and Chandrika. "The sales of Gluvovita have doubled post acquisition," Mr Agarwal said, adding that the company also expects to boost the sales of North-West by prefixing the switches with its range of modular office furniture.

First quarter revenue up

For June quarter, the consumer care and lighting business recorded a 30 per cent growth in revenues at Rs 176.8 crore as against Rs 136.4 crore in the corresponding quarter last year. With an operating margin of 13.1 per cent, it accounted for six per cent of Wipro's total revenues.

Mr Agarwal attributed the strong first quarter performance to the good growth in its furniture, toilet soaps and lighting business categories.

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