Wipro Consumer Care takes over Kerala’s famed and much-loved Nirapara brand

Nirapara is one of those regional rice mills known for sorting, packing and supplying fine rice varieties like Palakkad Matta (both short and long grains), Surekha, Jaya, Cherumani, Thanjavur Ponni, and traditional idli rice.

Over the years, it has diversified the business by processing, packaging and marketing 172 products.

Other than rice varieties, the list includes tamarind, dry ginger, fennel powder, sambar powder, biryani masala, crushed chilli, pickles, rava, maida, ghee, and atta.

Related: The story of Kerala’s climate resilient pokkali rice

In business since 1976

The group began its activities as a small rice mill in 1976, depending mainly on paddy cultivated by small-scale farmers.

In the beginning, it was known as KKR Rice Mill. Local businessman KK Karnan, who later forayed into other areas like real estate and granite quarry operations, then developed it as a company with the name KKR Group and started winning orders from outside Kerala as well.

With orders pouring in especially from the Gulf countries, Karnan grew the company into a modern rice mill and brought out packaged quality rice under the brand name Nirapara. However, most of the expansions and diversifications happened after Karnan’s son Biju Karnan took charge of the firm.

With the company starting to package and market rice varieties, spice powders, ready-to-eat products and other foodstuffs, Nirapara evolved into one of the top food brands in South India.

With actor Mohanlal and actress Manju Warrier among its brand ambassadors, Nirapara won the hearts of Malayalis worldwide.

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Financial performance

The company, which registered a record turnover of ₹400 crore in 2017-18, began reporting losses in the last four years. It lost its monopoly in the field in the face of intense competition from similar Kerala-based companies, prompting it to undertake cost-cutting measures.

On several occasions, Nirapara’s products were banned by Kerala’s food safety commissioner after confirming adulteration through laboratory checks.

Legal wranglings which followed the ban affected the company’s reputation, and many buyers started boycotting its products.

Some court cases against its promoters have also affected the company’s prospects.

Sources in the industry confirmed to South First that the inability of the promoters to regain the lost supremacy in the sector forced Nirapara to look for buyers.

Despite many attempts, the company promoters were unavailable for comments.

Wipro’s plans

Wipro is planning a significant entry into the packaged foods and spices segment through the takeover. In all likelihood, Wipro will retain the brand name Nirapara.

Details about the deal size remain unknown. In the new segment, Wipro will have to compete with giants in the sector like Dabur, Emami, Tata Consumer Products Ltd and ITC. This is the 13th acquisition by Wipro.

At present, 63 percent of Nirapara’s business comes from Kerala, eoight percent from the rest of India, and 29 percent from international markets, predominantly from Gulf Cooperation Council (GCC) countries.

Wipro Consumer Care and Lighting’s Executive Director Anil Chugh said there is a massive opportunity in this space for shifting consumers from an unorganised to an organised market by offering authentic, pure and trusted spice mixes.

Wipro Consumer Care and Lighting, a part of Wipro Enterprises, is among the fastest-growing FMCG businesses in India.

The company recorded a revenue of ₹8,630 crore in FY22, and its business includes personal wash products, toiletries, facial care products, wellness products, home care products, electrical wire devices, domestic and commercial lighting and seating solutions.

It has a strong brand presence with a significant market share across segments in India, Southeast Asia, the Middle East and Africa.

(With inputs from PTI)