Cargill to acquire Sunflower Vanaspati brand from India’s Wipro

American agribusiness company Cargill has entered into an agreement with India’s Wipro, to acquire its edible oil brand Sunflower Vanaspati for an undisclosed amount.

The Sunflower Vanaspati brand – a hydrogenated vegetable cooking oil made from palm oil – has a strong presence in several Indian states, including Maharashtra and Madhya Pradesh.

This acquisition will complement Cargill’s range of edible oil and vanaspati brands in India, while strengthening its presence in the palm oil market in the country.

In India, Cargill produces edible oil under brands such as Nature Fresh, Sweekar and Gemini, and vanaspati under the Rath, NatureFresh Purita and Gemini brands.

Cargill India chairman Siraj Chaudhry said the acquisition will be in line with the company’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.

Following the acquisition, the company plans to use its extensive distribution network to expand Sunflower Vanaspati to other markets.

Wipro Consumer Care and Lighting division senior vice president Anil Chugh was quoted by The Hindu as saying that Cargill, with its strong presence in Western India and focus on vegetable oils, will be able to further contribute to the growth of the brand.

Wipro noted that the divestment is a part of its strategy to focus on its personal care, skin care, wellness and lighting businesses.

The acquisition is limited to only the brand, as Wipro will use the vegetable oil manufacturing plant in Amalner, Maharashtra, to manufacture soaps.

Wipro, which will be ceasing its involvement in the food industry with this divestment, plans to move all existing employees in the vanaspati business to other operations.

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Image: The deal to acquire Wipro’s edible oil brand Sunflower Vanaspati is a part of Cargill’s strategy to grow its consumer food business in India. Photo courtesy of Cargill.