American agribusiness company Cargill has entered into an agreement with India-based Wipro to acquire its edible oil brand Sunflower Vanaspati for an undisclosed amount.
Sunflower Vanaspati brand offers vanaspati - a vegetable oil that has been hydrogenated and hardened. Popular in India, vanaspati is usually made from palm oil.
The acquisition, which is limited to the brand, is expected to strengthen Cargill's existing portfolio of leading edible oil and vanaspati brands. It also increases the company's presence in palm and its derivates market in India.
Wipro noted that the divestment is a part of its plan to focus on its core market segments of personal care, skin care, wellness and lighting. Following the deal, Wipro absorb all employees working in Sunflower Vanaspati business into its consumer care business.
Chairman Cargill India Siraj Chaudhry said that the acquisition is in line with Cargill's long-term commitment to grow its consumer food business in India.
"It is an excellent fit with our existing strong brand portfolio through which we serve a significant consumer base across the country," Chaudhry added.
In India, Cargill produces edible oil under brands such as Nature Fresh, Sweekar and Gemini. It also offers vanaspati under its brands Rath, NatureFresh Purita and, Gemini. Following the acquisition, Cargill plans to use its extensive distribution network to expand Sunflower Vanaspati brand to other markets.
