Wipro Consumer Care acquired Bio-essence, a renowned skincare brand in Singapore, in 2012. With a strong presence in Taiwan and Malaysia, Bio-essence is now set to target the premium segment in India, focusing on areas such as facial care, cleaners, moisturisers, and toners. The company aims to capitalise on its robust research and development capabilities in skincare to ensure the success of Bio-essence in the D2C space.
Wipro Consumer Care Ventures recently launched its second fund with a corpus of Rs 250 crore. The venture arm aims to take minority stakes in emerging spaces and D2C brands, providing strategic input and guidance without taking full control. This approach allows Wipro to support and nurture FMCG start-ups while leveraging their innovative ideas and business models.
In addition to its foray into the D2C space, Wipro Consumer Care plans to expand its nascent food business. The company intends to introduce ethnic ready-to-cook breakfast options and South Indian snacks such as murukku and banana chips. These products target the largely unorganised market and present significant growth opportunities.
The company has a history of successful acquisitions, having completed 15 acquisitions in the last 20 years. Its aggressive inorganic growth strategy has yielded profitable results, with brands such as Chandrika, Glucovita, Unza, Yardley, and Canway experiencing substantial growth since their acquisition. Wipro’s ability to grow acquired brands profitably has instilled confidence in its board to pursue further acquisitions.
The FMCG market in India has witnessed the resurgence of small regional players, particularly after the cooling of inflation. These players are giving tough competition to larger FMCG companies, impacting their market share and forcing them to revise prices in segments such as soaps, tea, detergent, and biscuits. The competition from small players has been acknowledged by several listed FMCG companies, including HUL, Godrej Consumer Products Ltd (GCPL), Marico, Britannia, and Tata Consumer Products Ltd (TCPL).
RTM Watch’s Take
Wipro Consumer Care’s leap into the direct-to-consumer (D2C) realm alongside its strategic intentions to invest in FMCG startups is a bold move showcasing the company’s dedication to innovation and expansion. Armed with robust research and development prowess, Wipro is steering towards broadening its footprint in the food sector, aiming to seize fresh market avenues and ride the wave of emerging trends. Building upon its history of successful acquisitions, Wipro fortifies its standing within the FMCG industry. Yet, in the face of resurging local contenders, Wipro must skillfully manoeuvre the competitive landscape to sustain its upward growth trajectory.
