Wipro Ltd, India’s third-largest software services exporter, has bought Singapore-based FMCG company Unza Holdings Ltd for about $246 million in an all-cash transaction.
New York-listed Wipro expects to complete the 100 per cent acquisition by end-July, it said in a statement. This makes for the largest takeover deal in the FMCG sector in recent times. Also, the deal makes Wipro the third-largest Indian FMCG player behind Nirma (Rs 2,500 crore) and Dabur Foods (Rs 1,700 crore).
The acquisition will give Wipro consolidated annualised revenue of about Rs 1,500 crore. The company, which also has stakes in consumer care and lightings, earns a major part of its revenue by providing IT solutions and services such as systems integration and software application development.
The Unza buyout will give Wipro access to about 30 markets in Southeast Asia, Middle East and Western Africa, and a portfolio of about 47 brands. Unza, which has a diverse portfolio comprising personal care brands such as Enchanteur, Safi, Romano and Izzi and detergent brands Vigor and Maxkleen, has manufacturing plants in Malaysia, Vietnam, China and Indonesia. Unza is the third-largest personal care and toiletry brand in Malaysia and Indonesia, and among the top 10 in Hong Kong and Singapore.
“This transaction enables us to almost double the addressable market in terms of GDP. We have been working on this deal from last December,” Vineet Agrawal, president of Wipro Consumer Care, said.
This is Wipro’s fourth acquisition in the consumer care and lighting segment – after Chandrika, Glucovita and Northwest – in the last three years.