KOCHI:The condiment and curry powder market simmers with Wipro Consumer Care and Lighting on Thursday announcing the acquisition of Brahmins, a Kerala-based spice mix and ready-to-cook brand for an undisclosed amount.
This is the third major acquisition of a homegrown company by Wipro Consumer Care in Kerala. The Bengaluru-based acquired Nirapara, a Kerala-based packaged rice powder and spice mixes brand in December 2022.
Wipro Consumer Care's acquisition of two spice mixes brands in a span of 5-6 months comes after Oslo, Norway-headquartered Orkla foods acquired Kochi-based Eastern Conditments Ltd, Kerala's oldest branded curry powders and masala blends, from Meeran family in September 2020. Orkla Foods entered India by acquiring MTR Foods in 2007. Following the acquisition of Eastern Condiments, the Kerala company was merged with MTR Foods.
Wipro Consumer Care officials said the company aims to become a sizeable player in the packaged foods segment following the acquisition of Brahmins. Wipro has spent one billion dollars in acquisitions in the past 20 years.
According to Anil Chugh, president, of food business, Wipro Consumer Care, the strategic partnership will see Wipro taking care of the marketing while the Brahmins founding family takes care of the manufacturing. Brahmins, established in 1987 by Vishnu Namboothiri, has a turnover of Rs 120 crore,
"Adding Brahmins to under the Wipro fold will further bolster our position in blended spices and ethnic breakfast categories in Kerala and other markets such as the Gulf Cooperation Council (GCC) countries, UK, US and Australia," said Chugh.
Brahmins have a strong market presence in the metro and Class I towns in Kerala. In terms of Brahmins business, 66% comes from Kerala, 4% from other states in the country and 30% from the international market majorly US, UK, GCC countries and Australia. Dubai is the biggest market followed by the US, said Chugh. Explaining growth that Brahmins has achieved over the years since its founding 36 years ago, Sreenath Vishnu, MD Brahmins said, "In the past three years the company has been showing a steady growth of 15 per cent and earned a turnover of Rs 120 crore."
According to Chugh, Wipro aims to increase the growth to 20 per cent in the coming years. As to a conflict of interests in the case of Nirapara and Brahmins, both of which are into manufacturing spice-mix and ready-to-cook, Chugh said, "Though both the companies are in the same market, their playing fields are different. While Nirapara has a strong base in the rural areas, Brahmins have a bigger presence in metros and class I towns. Then as to their products, Nirapara's non-vegetarian spice mix is more popular while Brahmins is very well-known and in high demand for its Sambar powder."
He said the consolidation of the company will happen in three to four weeks while its full integration will take place in 12 months. As to further acquisitions in the state, Chugh said, "Nothing has arrived as of now. But Wipro is open for acquisitions." Talking about Chandrika Soaps, its first acquisition from Kerala, back in 2003, Chugh said, "The soap company has become the third largest brand after Santoor."