Page 50 - IACC Newsletter January 2013 Issue no. 8 HD

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Cargill acquires Wipro's Sunflower Vanaspati in Rs 40-crore deal
US-based food major Cargill will acquire Wipro's Sunflower Vanaspati brand, the company said in a communique on
Monday. Cargill did not disclose the deal size. But analysts have pegged it at Rs 40 crore. The transaction would not
involve any sale of assets apart from the product brand, the statement said.
This will be Cargill's fourth acquisition in six years, which has an estimated turnover of Rs 4,000 crore, ranking third in
the pecking order of edible oil companies after Adani Wilmar and Ruchi Soya in India.
The four acquisitions include Gemini Sunflower Oil from Paras Foods in 2006, Rath, a vanaspati brand from Agrotech in
2010, Sweekar Sunflower Oil from Marico in 2011 and the current acquisition from Wipro.
Wipro's Sunflower Vanaspati is a premium brand in Maharashtra with sales of about Rs 30 crore. Cargill, with its
acquisitions, has looked at brands that have a strong local presence, analysts said. Gemini, for instance, is strong in
Maharashtra, while Rath is strong in the north. Only Sweekar, much like Cargill's inhouse Nature Fresh brand, has a
national footprint.
"This acquisition strengthens Cargill's existing portfolio of leading edible oil and vanaspati brands and also expands its
market reach in India's palm oil and its derivatives including vanaspati market," Cargill's India chairman Siraj Chaudhry
said.
"Acquiring Sunflower Vanaspati underscores Cargill's long-term commitment to growing our consumer food business in
India. It is an excellent fit with our existing strong brand portfolio through which we serve a significant consumer base
across the country," Chaudhry added.
For Wipro, the sale of its vanaspati brand is in keeping with its strategy of existing non-core segments. The company has
been looking to get out of categories such as diapers besides vanaspati for some time now. Both the categories together
gave Wipro about Rs 40-45 crore in terms of revenues.
Saxon Global Acquires Bangalore based data analytics company ISAC global
US headquartered data and analytics consulting company Saxon Global has acquired a majority stake in Bangalore based
Ideas Software and Consulting Pvt Ltd (ISAC Global), a boutique Big Data and Web intelligence solutions firm.
Haricharan C M, the Chief Executive Officer of ISAC Global, will join Saxon as Chief Operating Officer, while Sudhir
Patavardhan, CTO of ISAC Global, will continue to lead technology development and engineering efforts of Saxon Global,
the company said.
The deal is part stock and part cash, Haricharan told NBW. He did not disclose further details of the acquisition. ISAC
Global owns Siteanalytix, a Web analytics platform currently used by clients such as Rediff and Carwale. The company
recently launched a Big Data platform for the US Insurance sector, which is in Beta stage.
“Our goal is to move into a non-linear growth model over the next eighteen months, by migrating all our customers to
adopt our Platform-based Big Data solution,” said Gopi Kandukuri, Founder and Chief Executive Officer, Saxon Global.
The company has been operational for nearly 4.5 years and has serviced nearly 35 clients, Haricharan added.