Wipro Enterprises Targets Food Sector Expansion Following Successful Acquisitions

22 Mar 2024 , 01:22 PM

Wipro Enterprises, the non-IT consumer and food business of Azim Premji’s conglomerate, is eyeing the food sector for future expansions, building on recent successes in the industry.

In the past year, Wipro Enterprises has made significant strides in its food business through strategic acquisitions. In December 2022, it acquired Nirapara, a renowned spice brand, followed by Brahmins, another established brand, in April 2023. These moves aim to strengthen its presence in spices, breakfast, and Ready-to-Cook categories.

Raghav Swaminathan, CFO of Wipro Enterprises, underscores the company’s focus on spices, citing substantial opportunities in this sector. He highlights the strategy to tap into the vast unorganised market in India by acquiring assets and transitioning them into the organised sector.

Notable acquisitions in the food sector include Tata Consumer’s plans to acquire Capital Foods and Organic India. Similarly, ITC has invested in Yoga Bar, indicating a trend towards expansion and consolidation in the industry.

Wipro Enterprises targets double-digit growth of 15-20% in its food business in FY2025, leveraging its distribution network, especially in the southern region. The company aims to penetrate general and modern trade channels more efficiently post-acquisition.

Despite challenges in rural growth and consumer pricing, Wipro Enterprises has witnessed significant growth in its industrial automation segment, with a robust annual growth rate of 40-50%.

Looking ahead, Wipro Enterprises maintains cautious optimism, closely monitoring consumer demand trends. Positive indicators in the industrial sector, supported by government infrastructure projects, are noted.

With over 50% of its revenue derived from the global market, Wipro Enterprises plans to further expand its overseas presence. While retaining a strong foothold in India, the company eyes growth opportunities, particularly in the US market.

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