Wipro Consumer adds three more soap brands with its 15th acquisition | Mint
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Business News/ Companies / Wipro Consumer adds three more soap brands with its 15th acquisition

Wipro Consumer adds three more soap brands with its 15th acquisition

The purchase of Jo, Doy, and Bacter Shield soaps strengthens Wipro Consumer’s presence in the highly competitive packaged soaps market, which includes heavyweights HUL, Godrej Consumer Products, and ITC

Wipro Consumer Care already sells soap brands such as Santoor and Chandrika.Premium
Wipro Consumer Care already sells soap brands such as Santoor and Chandrika.

NEW DELHI : Wipro Consumer Care and Lighting has acquired personal care brands Jo, Doy, and Bacter Shield from VVF (India) Ltd, marking the company’s 15th acquisition till date and the third in the past one year.

The acquisition signals further expansion for Wipro Consumer Care in the personal wash segment, where it already sells brands such as Santoor and Chandrika.

“Apart from Santoor, we have two other offerings in the toilet soap business, with Chandrika being a sub-premium offering and Yardley a premium offering," said Neeraj Khatri, chief executive, Wipro Consumer Care and Lighting, India and SAARC business. “One of the segments we were not present in was the sub-popular segment. That segment is around 25% by volume and 20% by value of the overall soaps market. So, this deal is a strategic fit in the personal wash space."

Khatri declined to share the size of the deal. However, the three brands generated over 200 crore in sales last fiscal year ended 31 March 2023.

The Jo toilet soap has a play in the North, East and West markets in India. Doy operates in the premium-soaps segment, and Bacter Shield has a range of antibacterial soaps and handwashes.

To be sure, India’s bathing-soap market is highly penetrated and competitive, and includes heavyweights such as Hindustan Unilever Ltd, Godrej Consumer Products, and ITC.

The latest acquisitions, announced on Tuesday, will help the company participate in the 5,000 crore mass-end of the soap market. It already has a large presence in the premium soap market with brands such as Santoor and Yardley that typically operate in the broader 15,000-17,000 crore toilet-soap market.

Santoor is among the top-selling soap brands in the country.

The move also underscores the company’s appetite to snap up regional brands and diversify its portfolio beyond personal care.

Wipro Consumer Care and Lighting gets 75% of its domestic business by selling personal-care products.

In December last year, the company acquired Kerala-based, KKR Group-owned Nirapara brand, marking its entry into the packaged snacks, spices, and ready-to-cook food segments. Then, in April, it announced acquisition of Brahmins, a spice mix and ready-to-cook brand based in Kerala.

It has in the past acquired energy drinks brand Glucovita and personal-care brand Yardley.

The company continues to explore acquisition opportunities across foods, personal care and home care segments.

“Our first commitment is to grow organically. We will keep growing ahead of the market with the brands we have acquired and those that are homegrown, as well as look for acquisition opportunities, if these make strategic sense, be it in terms of the category, or the value add we can do or the territories we can expand into," he said.

In FY23, Wipro Consumer Care recorded sales of 10,000 crore, with 51% of this coming from its overseas operations. Its flagship Santoor brand reported sales of over 2,650 crore. Wipro Consumer Care also sells Glucovita energy drink and home care products including Safewash liquid detergent, Softouch fabric conditioner, and Yardley talcum powder and deodorants.

The Mumbai-based VVF is a large contract manufacturer of soaps, shampoo, conditioners, hand sanitizers, creams and lotions.

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Suneera Tandon
Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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Published: 05 Dec 2023, 01:54 PM IST
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