Wipro Ltd has sold its initial core business, the Sunflower Vanaspati brand, to food-to-industrial products multinational Cargill for an undisclosed sum.
Wipro, earlier called Western India Vegetable Products Ltd, started its business in 1945 selling vanaspati, vegetable ghee and refined oil. After current chairman Azim Premji took over the company following his father’s demise in 1966, Wipro was transformed into a multi-billion soap to IT conglomerate.
In a press statement, Cargill said it has signed an agreement with Wipro Limited to buy Sunflower Vanaspati.
Wipro’s decision to divest its Sunflower Vanaspati brand is based on its increasing focus on personal care, skin care and wellness. In a statement, the company said the scope of the acquisition is limited to the product brand. Both companies declined to disclose the sale value.
The acquisition strengthens Cargill’s portfolio of leading edible oil and vanaspati brands and expands its market reach in India’s palm-oil and derivatives, including vanaspati market.
“Acquiring Sunflower Vanaspati underscores Cargill's long-term commitment to growing our consumer food business in India. It is an excellent fit with our existing strong brand portfolio, through which we serve a significant consumer base across the country,” said Siraj Chaudhry, Chairman, Cargill India.
Anil Chugh, Senior Vice-President, Wipro Consumer Care, said: “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.”
He added: “The Sunflower Vanaspati business was about one per cent of the total Wipro Consumer Care and Lighting revenue. All employees related to this business will be absorbed in our current operations.”