In a strategic move, Wipro Consumer Care and Lighting, under the leadership of Azim Premji, has successfully acquired three prominent personal wash brands – Jo, Doy, and Bacter Shield – from Mumbai-based VVF India. The announcement, made on Tuesday, marks Wipro’s 15th acquisition since 2003 and its third in the past 12 months.
Neeraj Khatri, Chief Executive for India and SAARC business, stated that the transition of the acquired brands into Wipro’s portfolio is expected to take 3-4 months. Khatri envisions substantial revenue growth for these brands, collectively amounting to Rs 210 crore in FY23, with a doubling projection within the next three years.
VVF India, a significant contract manufacturer of various personal care products, including soaps, shampoos, conditioners, hand sanitizers, and skin moisturizers, served as the seller in this strategic deal.
This acquisition follows Wipro’s previous strategic moves, including the acquisition of Kerala-based Nirapara and Brahmins in December, marking an entry into the packaged snacks, spices, and ready-to-cook food segments. Although the deal amount remains undisclosed, Wipro disclosed a cumulative investment exceeding $1 billion in various acquisitions to date.
With an existing 11% market share in the toilet soaps category, Wipro aims to leverage these acquired brands to strengthen its presence in both premium and sub-premium categories. Notably, Jo, Doy, and Bacter Shield cater to distinct market segments, enhancing Wipro’s market positioning.
Vineet Agrawal, CEO of Wipro Consumer Care and Lighting, and Managing Director of Wipro Enterprises, emphasised the complementarity of these brands to Wipro’s existing portfolio, providing a more robust foothold in key markets. The three acquired brands will be distributed not only in India but also in Nepal, Bhutan, Sri Lanka, Bangladesh, and the Maldives.
Looking ahead, Wipro eyes Maharashtra as a potential location for its next manufacturing investment. Presently operating five manufacturing facilities across India, including locations in Amalner and Waluj in Maharashtra, Tumkur district in Karnataka, Baddi near Chandigarh, and Hyderabad in Telangana, the company is poised for further expansion.
Despite rural consumption demand lagging behind pre-Covid levels, Neeraj Khatri anticipates that urban India will be a driving force in the FMCG industry’s business growth in the current financial year.
Wipro’s extensive portfolio includes renowned household names such as Glucovita, Chandrika, North-West, Unza, Yardley, Bio Essence, and Splash Corporation. Notably, Santoor, the flagship brand in personal care, is recognized as the second-largest toilet soap brand in India. With an impressive growth rate exceeding 17% in the Indian market, Wipro achieved sales surpassing Rs 10,000 crore in the last fiscal year, solidifying its stature as a major player in the personal care and consumer goods industry.
