Wipro Consumer Care and Lighting has launched Wipro Consumer Care – Ventures to invest in startups which are focusing on India and South East Asia markets.
As part of the initiative Wipro Consumer Care – Ventures will invest in innovative start-ups in the consumer brands space. The company is looking at this venture to focus on companies with a differentiated approach. It should help both of them to learn by leveraging their strengths and add value to each other.
Wipro Consumer Care – Ventures
To begin this, Wipro Consumer Care has appointed SumitKeshan,a former Wiproite,
as the Managing Partner of the Ventures. The company didn’t announce the quantum of fund allotted by Wipro Consumer Care and Lighting for the venture.
Commenting on the appointment, Sumit Keshan said investment by Wipro Consumer Care – Ventures in Happily Unmarried was the first step to establishing this venture capital fund.
Rapid growth of company
“Apart from financial capital, what we bring to the table is deep knowledge of operations and the ability to scale up, and a strong understanding of consumers in India and South East Asia markets. These would support startups in their endeavour to grow rapidly, ” said Sumit Keshan.
According to analysts, the company’s decision to form Wipro Consumer Care – Ventures is primarily because of the changes in consumer behaviour and the impact of startup. “The digital landscape has transformed the buying patterns of consumers. Startups with their niche products and services are disrupting this business. Anyway, Wipro Consumer Care and Lighting decision to form Wipro Consumer Care – Ventures is right step to take on future requirements, “said the analyst.
The annual revenue of Wipro Consumer Care and Lighting (WCCL) business reached at Rs 7,150 crore for the financial year 2018-19. The company managed to cross $1 billion one billion mark in FY2019n grew its revenues close to 8% during the same period. The company’s year-on-year in 2018-19 onsolidated operating margins (including furniture and lighting) stood at around 14%.
Within consumer brands business, the primary area of focus would be categories that are of
interest to the Company. Wipro Consumer Care and Lighting operates mainly in personal care,
skincare, home care, and lighting categories.
The Company intends to invest in new-age startups in digital, e-commerce, and other ventures that adopt an innovative approach to reach consumers. It will invest in companies in India and Southeast Asia that have strong
entrepreneurs and a sound business model.
The Company has had significant learning of digital and ecommerce space across geographies like India, Indonesia, China, Malaysia, and Vietnam. In 2017, the Company invested in Happily Unmarried in India, which markets the men’s and women’s grooming products under the brands Ustraa and Happily Unmarried respectively.
Wipro Consumer Care and Lighting, a part of Wipro Enterprises, is one among the fastest growing FMCG business in India. Wipro Consumer Care’s business includes personal wash products, toiletries, facial care products, wellness products, home care products, electrical wire devices, domestic and commercial lighting and modular office furniture. It has a strong brand presence with significant market share across segments in India, South East Asia, and the Middle-East. Besides 15 manufacturing units in China, India, Indonesia, Malaysia and Vietnam and research and development (R&D) facilities in India and Malaysia, the company made inorganic growth by massive acquisition across the globe.
Azim Premji owned Wipro has multiple investment arm including Premji Invest, Premji Foundation and family office of billionaire Azim Premji. PremjiInvest which is said to be managing at least above $3 billion of assets, predominantly in the public markets or publicly listed and private companies.