Wipro Bets on Regional Depth, Convenience to Scale Food Business
The Wipro Foods division is intensifying its focus on the food sector by increasing its investment in regional brands like Brahmins, while also venturing into lucrative segments such as ready-to-cook meals and snacks.
The corporation based in Bengaluru, which initiated its presence in the industry by acquiring Nirapara and Brahmins, is now experiencing significant momentum.
Anil Chugh, the President of Wipro Foods, stated that since Wipro's acquisition, the brand has been experiencing double-digit growth rates, surpassing industry averages.
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Brahmins has reinforced its position as a market leader in Kerala, holding a market share of over 40 percent in urban sambar, while also expanding its presence beyond its native market. One important area of emphasis is the trend towards convenience. The company has launched a new line of quick-cook products called "Brahmins Xpress Mix," which includes items like idli, dosa, and upma that can be prepared in a matter of minutes.
According to Chugh, this represents a novel approach to convenience food as consumers are seeking home-style meals without the need for extensive preparation. In addition, the products are designed to maintain their traditional flavors while being free of preservatives.
Wipro is currently diversifying its product offerings within the Brahmins brand to include millets and snacks, with the introduction of 7-10 new Stock Keeping Units (SKUs). At the broader organizational level, Wipro has broadened its food product portfolio to include a variety of items such as spices, ethnic breakfast items, snacks, pickles, and desserts.
Additionally, Wipro is expanding its in-house brand, Granamma, to reach customers across South India. The overall strategy does not focus on standardization across all of India, but instead on achieving extensive coverage within specific regions.
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According to Chugh, the company's approach is tailored to the unique characteristics of each state. He emphasizes that culinary preferences vary significantly every 300-400 kilometers, making it more advantageous to establish a strong presence in a particular geographic area rather than trying to cover a larger area superficially.
This development coincides with an increase in competition within the packaged foods market, notably in the RTC and ready-to-eat sectors, as companies such as Orkla and ITC broaden their product ranges.
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Chugh noted that the greatest potential lies in formalization. There is a significant transition taking place from unorganized to organized sectors, particularly in snacks and staple foods, which indicates ample room for expansion in the market. Wipro's food strategy is centered on delving further into regional markets and formalizing diverse categories, with a focus on acquisitions and expanding into the convenience sector.
Moreover, Wipro has revealed plans to inaugurate a cutting-edge innovation hub dedicated to artificial intelligence in GIFT City. This initiative aims to enhance the company's ability to cater to international clients in the banking, financial services, and insurance sectors, while also advancing its strategy for AI-driven transformation.
The recently established center will specialize in providing sophisticated artificial intelligence solutions customized for the banking, financial services, and insurance (BFSI) industry. Wipro's decision to relocate to GIFT City signifies the company's commitment to enhancing client relationships through innovative delivery approaches and expanding its footprint in India's burgeoning financial and technology sector.