The acquisition of the UK and European Yardley portfolio is aimed at extending Wipro’s geographic reach in these markets. Wipro already owns the Yardley businesses in Asia, Middle East, North Africa and Austral-asia after acquiring them from Lornamead in December 2009 for $45.5m (£29.3m).
Established in 1770, Yardley of London is a traditional British soap, cosmetics and perfume brand. It became part of Lornamead Group in 2005 when British Asian business family Jatanias bought it for £60m.
Along with Yardley, Wipro is also acquiring the “Woods of Windsor” business, another heritage brand in the UK, which is well known for its classic English fragrances and luxury personal care products since 1770.
Wipro announced the acquisitions while reporting its financial results for the quarter ended June 2012. Its Consumer Care and Lighting division posted a revenue of 9.8bn rupees (£113m), a 30% year-on-year rise, contributing 9% of the company’s total revenue for the quarter.
Total revenue for Wipro for the quarter was at 106.53bn rupees (£1.23bn), a 24% rise YoY and its net income for the quarter rose 18% YoY. Its results were in line with market expectations.
The company’s IT services revenue in dollar term reported only an 8% YoY rise as against the 30% YoY rise in IT services revenue in rupee term.
“In today’s complex business environment, global corporations are increasingly investing in transformational technology initiatives to improve competitiveness,” said Azim Premji, Wipro’s chairman.
The company added that a “leading retail bank and insurance provider in the UK” has selected Wipro IT Services for end-to-end Insurance BPO Services. Wipro will be providing third-party administration services for policy administration and claims management from India and the Republic of Ireland, in an engagement which will “further enhance Wipro’s core insurance processing capability”.