Wipro Plans Big­ger FMCG Play

To ex­pand range to deter­gents and en­ergy drinks, tak­ing the fight to HUL and P&G

The Economic Times - - Brands: Creating Desire - Ratna.Bhushan@ times­group.com

Ben­galuru: Wipro’s con­sumer care and light­ing busi­ness will ex­pand its range of prod­ucts to deter­gents, en­ergy drinks and fab­ric con­di­tion­ers, in­ten­si­fy­ing com­pe­ti­tion in sec­tors dom­i­nated by global giants Hindustan Unilever and Proc­ter & Gam­ble.

“The fo­cus will be on cross lever­ag­ing of as­sets. With back­end in­te­gra­tion, we will en­ter newer cat­e­gories un­der ex­ist­ing brands, with exis- ting for­mu­la­tions, man­u­fac­tur­ing and sup­ply,” Wipro Con­sumer chief ex­ec­u­tive Vi­neet Agrawal said.

The con­fir­ma­tion on ex­tend­ing the line of busi­ness fol­lows an ET re­port this month that Wipro was seek­ing to re­po­si­tion its brand in a man­ner that would pro­vide con­sumer care and light­ing busi­ness the pri­macy they de­serve. Start­ing out as a do­mes­tic con­sumer com­pany at Amal­ner in Ma­ha­rash­tra, Wipro has evolved into a di­ver­si­fied con­glom­er­ate that is known be­yond In­dia’s borders as pri­mar­ily a tech­nol­ogy com­pany.

The ₹ 5,900-crore Wipro Con­sumer Care, which has done 10 in­ter­na­tional ac­qui­si­tions in a decade, will adapt a sim­i­lar strat­egy for all glob­ally ac­quired brands – of tap­ping new cat­e­gories un­der ex­ist­ing brands. The con­sumer goods arm of Wipro En­ter­prises, which sells soaps, baby care and light­ing prod­ucts, has iden­ti­fied China, the Mid­dle East and Malaysia as some of its key strate­gic mar­kets.

“The fo­cus will be on in­vest­ing in new, un­der lever­aged cat­e­gories by lever­ag­ing ex­ist­ing ones across coun­tries,” he said.

With the divi­sion’s ac­qui­si­tion of Chi­nese per­sonal care maker Zhong­shan Ma Er Daily Prod­ucts last year in Septem­ber, over 55% of the for­mer’s topline is con­trib­uted by over­seas mar­kets. The ac­qui­si­tion of the Chi­nese firm, Wipro Con­sumer’s sec­ond big­gest buy-out since it bought Sin­ga­pore-based Unza Hold­ings for $246 mil­lion in 2007, has given it cap­tive mar­ket share in shower prod­ucts and liq­uid deter­gents.

Lo­cally, though, the maker of San­toor soap and Ara­musk male groom­ing prod­ucts has not used the same strat­egy. “We are go­ing more global be­cause there’s very lit­tle hap­pen­ing in In­dia in terms of ac­qui­si­tions. We can be an en­thu­si­as­tic buyer but there has to be a will­ing seller of size and re­pute, at val­u­a­tions that are work­able,” Agrawal said.

Ac­cord­ing to data by re­searcher Nielsen, San­toor is the No 3 brand within soaps with a 9% share, af­ter HUL’s Lifebuoy and Lux, and fol­lowed by Det­tol Reckitt Benckiser’s and Go­drej Con­sumer Prod­ucts’ No 1.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.