April 17: Wipro Ltd today announced that it has entered into a definitive agreement with FMCG major Hindustan Lever Ltd to acquire the Glucovita brand.
Consumer care and lighting business of the Rs 4338-crore Wipro group will market Glucovita in India and Nepal but Hindustan Lever would continue production of the glucose brand.
“Glucovita has a market share of 5 per cent in India and 40 per cent in Nepal,” Wipro consumer care and lighting business president Vineet Agrawal told reporters in Bangalore.
He, however, declined to comment on the acquisition value but said it was a one-time sale and the transaction was expected to be completed by June. Agrawal said Wipro would also look at other third-party units for producing the glucose.
Confirming the sale, Hindustan Lever, in a release issued in Mumbai, said, “This disposal is in line with HLL’s strategy to focus on power brands.”
The Glucovita brand had a market share of 89 per cent in Kerala, but it had been on a decline in the last two years since HLL acquired the brand. “This brand fits into our strategy to expand. Glucose consumption is largely during summer and the brand should earn revenues from next year,” Agrawal said.
Analysts tracking the consumer goods sector said Glucovita was a small brand and therefore will have little impact on HLL’s sales and profits. “Wipro is on the lookout for acquiring brands to leverage their distribution network,” said Nihar Shah, who tracks the FMCG sector for ASK Raymond James.