Wipro Consumer Care acquires Yardley business in UK
Software services to FMCG major Wipro has signed an agreement with Lornamead Group to acquire the Yardley business in UK and select European countries (excluding Germany and Austria).
July 24, 2012 / 16:02 IST
Moneycontrol Bureau
Software services to FMCG major Wipro has signed an agreement with Lornamead Group to acquire the Yardley business in UK and select European countries (excluding Germany and Austria).Wipro Consumer Care and Lighting had acquired the Yardley portfolio for Asia, Middle East, North Africa and Australasia from Lornamead in Dec 2009.Apart from Yardley, Wipro said it will also acquire the "Woods of Windsor" business, a heritage brand in UK, known for its floral fragrance led portfolio in personal care segment.Since acquisition by Wipro, Yardley's revenue has doubled. It reported revenue of Rs 184.9 crore in the last financial year."Given the brand's performance it was only logical to own both the brands in its home market in the UK, which in FY12 clocked a revenue of Rs 29.6 crore (USD 6.2 million). We will be able to leverage the brand's core values and offer new products to consumers across our markets and are confident that we will be able to develop the Yardley brand further especially by using our strong R&D and international footprint," said Nagender Arya, Wipro's regional director (East Asia, Middle East and Africa).Yardley was established in 1770 and its portfolio mainly includes personal care products like soaps, perfumes, body sprays and talcs.Earlier on Tuesday, the software services exporter Wipro met street expectations with a consolidated net profit of Rs 1,580.2 crore in April-June, up 18% year-on-year. Its total income rose 24% to Rs 10,619.6 crore in the quarter.However, the company has guided for a flattish growth in the second quarter. It expects revenue from IT services in USD 1.52-1.55 billion range in July-September, compared with USD 1.515 billion revenue it reported in the first quarter. The quarterly guidance indicates 0.3-2.3% sequential growth.Revenue from consumer care and lighting business rose 30% year-on-year to Rs 980 crore, while EBIT (earnings before interest and taxes) rose 27% to Rs 114 crore.Wipro shares fell post the results as investors were disappointed with the guidance. It was still down 3% at 345.65 on NSE in noon trade.Nachiket Kelkar
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