Wipro, the Bengaluru-headquartered IT services firm, has acquired a 60% stake in Dermatouch, a direct-to-consumer personal care brand, for an enterprise value of ₹387.5 crore. This move, reported by The Hindu, positions Wipro further into India’s estimated ₹30,000 crore personal care market, a sector it has been consistently investing in for over two decades.

This acquisition fits a clear pattern for Wipro Consumer Care and Lighting, which has made 18 acquisitions since 2003, investing a total of $1.1 billion. Previous targets have included brands like Glucovita, Chandrika, North West, Unza, Yardley, Splash, CanWay, Nirapara, Brahmins, Jo Doy, S Brands, Good Home, and Eva. For Indian startups in the beauty, wellness, and personal care segments, this signals that Wipro remains an active and strategic acquirer, potentially offering exit opportunities for growth-stage companies. However, it also means a well-capitalized entity is expanding its market share, intensifying competition in a segment that has seen a surge of startup activity.

Government Backing for Electronics Manufacturing

Separately, Wipro is also set to benefit from a significant government initiative aimed at boosting domestic manufacturing. The government has approved 31 projects under the fifth tranche of the Electronics Component Manufacturing Scheme (ECMS), totaling ₹7,877 crore. Wipro, alongside companies like Kaynes Technology, Motherson, and Micromax, is among those whose plants are now scheduled to go live. This development, according to Startuptalky, is projected to create manufacturing worth ₹82,243 crore across these approved projects.

For electronics hardware startups and component manufacturers, Wipro’s participation in ECMS is a strong indicator of the government’s continued commitment to domestic production incentives. This policy from MeitY (Ministry of Electronics and Information Technology) aims to strengthen the local supply chain and reduce reliance on imports. Startups in this sector should pay close attention to the specific components and capabilities Wipro and other large players are developing, as this could create new demand for ancillary services, specialized components, or partnership opportunities. It also highlights the broader regulatory environment that favors companies willing to invest in physical manufacturing infrastructure within India, potentially guiding future investment and business development strategies for startups in related fields.

Labour Scrutiny on Hiring Practices

While Wipro expands its footprint in consumer goods and uses government manufacturing incentives, it also faces scrutiny over its employment practices. An IT rights body has written to the Labour Ministry regarding Wipro’s onboarding delays for candidates selected through its Elite Hiring 2025 process, as The Hindu reported.

This complaint, while specific to Wipro, points to broader challenges within the Indian tech sector concerning talent management and recruitment ethics. Onboarding delays, particularly after a formal selection process, can cause significant distress to candidates and reflect poorly on the industry’s employment standards. For startups, which often compete fiercely for talent with larger firms, such regulatory attention on established players could influence future labour policies or the enforcement of existing ones. Startups must ensure their hiring and onboarding processes are transparent and timely, as regulatory bodies may increase scrutiny across the sector. Compliance with labour laws and maintaining a strong employer brand are crucial, especially in a competitive talent market where precedents set by larger companies can eventually affect all companies in the industry.

Wipro’s simultaneous pursuit of diversification into consumer brands and manufacturing, aided by government schemes, while facing regulatory challenges in its core IT services hiring, illustrates the complex operational environment for large Indian enterprises. This multi-pronged strategy reflects both aggressive business expansion into new growth areas and the inherent regulatory and talent management issues that can arise. These developments offer both competitive challenges and potential partnership avenues for Indian startups, while highlighting the importance of navigating evolving policy frameworks related to manufacturing incentives and labour compliance.

What did Wipro acquire?

Wipro acquired a 60% stake in Dermatouch, a direct-to-consumer personal care brand.

How much did Wipro pay for Dermatouch?

Wipro paid ₹387.5 crore for the 60% stake in Dermatouch.

What government scheme is Wipro benefiting from?

Wipro is benefiting from the Electronics Component Manufacturing Scheme (ECMS), under which its plant is set to go live as part of 31 approved projects.

Compiled by Launch91 Desk from the sources linked above. More about Launch91.