Wipro Ltd has entered into a definitive agreement with FMCG major Hindustan Lever Ltd (HLL) to acquire the glucose brand 'Glucovita'. As per the agreement the Consumer Care and Lighting business of the Rs 4,338 crore Wipro group will market Glucovita in India and Nepal but HLL would continue production of the glucose brand.
"Glucovita has a market share of 5 per cent in India and 40 per cent share in Nepal," according to Vineet Agrawal, President, Wipro Consumer Care and Lighting business. However, he 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 brand.
The brand has a market share of 89 per cent in Kerala, but it has been on the decline in the last two years since HLL acquired the brand.
"This brand fits in with our strategy to expand. Glucose consumption is largely during summer and the brand should earn revenues from next year," Agrawal said.
The sale of Glucovita is part of the ongoing brand rationalisation exercise in the FMCG major.