December 10/New Delhi/Press Release -- Cargill Inc. will buy the Sunflower Vanaspati ghee brand from Wipro Consumer Care and Lighting, part of Azim Premji’s Wipro Ltd. The companies did not disclose the terms of the deal.
Wipro, which now earns over 85% of its revenue from IT, traces its history back to 1945 when it started operations as a manufacturer of ghee. Sunflower Vanaspati is the company’s oldest brand.
The deal comes as Wipro Consumer, expected to generate over Rs.4,000 crore in sales this year, is increasing its presence in personal care products.Last month, Wipro, India’s No. 3 software services provider, announced a separation of its non-IT units into a separate company to focus on its core IT business.
Privately held Cargill is one of the biggest U.S. companies by revenue. It has a variety of businesses such as food processing, distribution of agricultural commodities as well as a financial services arm which provides services in commodity trading.
“Acquiring Sunflower Vanaspati underscores Cargill’s long-term commitment to growing our consumer food business in India,” said Siraj Chaudhry, chairman of Cargill India Pvt. Ltd.
The transaction will help strengthen the company’s consumer food business in India. Cargill processes, refines and markets a range of edible vegetable oils, fats and blends for the food industry. Its existing portfolio of edible oil consists of Nature Fresh, Sweekar, Gemini and Rath.
The divestment of the Sunflower brand is part of a Wipro strategy that will focus on other segments of its consumer business, said Anil Chugh, senior vice-president, Wipro Consumer Care.
“We have identified our core market segments to be personal care, skin care, wellness and lighting, and in line with our strategy we are divesting the Sunflower Vanaspati business,” Chugh said.
Sunflower contributed about 1% of revenue earned by Wipro Consumer Care and Lighting, Chugh said. All employees related to the business will be absorbed in other businesses of the company.