Moving away from the roots?

Western India Palm Refined Oils...name sounds a bell? Not really? Does WIPRO mean anything to you? Yes, WIPRO is an acronym for the same. Recently, Wipro decided to exit the Vanaspathi and the babycare business.

It truly is a move away from the roots, isn't it? Someone who has started in the Vanaspathi segment and diversified to become a potent force in, well, whichever segment it ventured to. However, it has to be noted that no decision in business is to be emotional and only sense is what prevails.

So, what makes WIPRO take this decision? The actual share of these two businesses is pegged at around 3% of the overall revenues of Wipro consumer care revenues. There are many problems in the Vanaspathi segment what with the adulterated market, health conscious people and the lower appeal among the urban consumers. In the baby care segment, it is an open secret that Johnson & Johnson is the leader by a long way. It controls more than 90% of the market in this segment. Moreover, there is very less brand appeal for "Softbrand" - Wipro's brand in this market.

Looking at all these factors, it seems to be a well-thought business decision from Wipro. After all, what is more important is your bottom line!