Wipro may hive off business unit

The share price shot up 2.2% intra-day to touch Rs 355.20 per share, before closing at Rs 350.80

Wipro, which has presence in consumer care and information technology (IT), has seen its stock price rise continuously over the last three days on the buzz that the company might be hiving off its consumer care and lighting business unit.

The share price shot up 2.2 per cent intra-day to touch Rs 355.20 per share, before closing at Rs 350.80.

The company refused to comment, as it is in its “silent period” (Wipro is set to announce its Q2 results on November 2).

The consumer care and lighting business contributes around nine per cent of the company’s revenue, but has been growing fast over the past few years.

According to the company’s FY2012 annual report, consumer care and lighting business revenue was Rs 3,340 crore and profit before interest and tax for the year was Rs 395.60 crore. Going by the annual report, this business has grown around 11 times over the last nine years.

The consumer care and lighting business has three main segments — household business (including personal care and domestic lighting), office solutions business and Unza (international personal care business), which spans across Asia and Africa.

Earlier this year, the company acquired premium personal care brand Yardley’s businesses in the UK and other select European nations for an undisclosed amount, giving the company a wider reach in its Yardley portfolio.

In December 2009, Wipro Consumer Care and Lighting had acquired the Yardley portfolio for Asia, West Asia, North Africa and Australasia from Lornamead.

The Indian household business, including personal care and domestic lighting, grew 24 per cent in FY2012.

Santoor is one of the flagship products from the company, with revenues from this single brand crossing the Rs 1,000-crore mark in FY2012.

Santoor, according to the company, is the largest toilet Soap brand in combined South and West India.