Wipro Consumer Care and Lighting (WCCL) has bought three soap brands – Jo, Doy, and Bacter Shield – from VVF Limited, its third acquisition over the past year, part of its wider strategy to expand into newer sub-segments within the Rs28000 crore soap market.
While Jo toilet soap has a significant play in north, east and west markets, Doy operates in the premium segment competing against Hindustan Unilever’s Dove and Pears and Bacter Shield, an antibacterial range of soap and handwash, has rivals including Lifebuoy, Dettol and Savlon. These brands had a combined revenue of over 210 crore during FY23.
The acquisition will be a strategic expansion for Wipro in the personal wash segment, said the company. “With a diverse array of brands and Wipro’s robust distribution network, we are positioned to fortify our market presence and propel growth. These brands complement our existing portfolio and will give us a stronger foothold in the key markets,” said Vineet Agrawal, CEO of WCCL.
Wipro Consumer is one of the largest players in the soap segment and its flagship brand Santoor is the second largest soap brand after HUL’s Lifebuoy. Over the past two decades, it has made more than a dozen acquisitions in domestic and international markets including energy drink Glucovita, Chandrika soap and Yardley.
Over the past several years, VVF, one of the largest contract manufacturers of bar soaps in India, was planning to sell its personal care brands to focus on manufacturing. In fact, it had sold soap brands Aramusk and Moloy to Wipro in 2011.
“The divestment of Jo, Doy, and Bacter Shield to Wipro aligns with our focus on optimizing our portfolio and underscores our confidence in Wipro’s ability to nurture and elevate these brands. This alliance reflects our commitment to delivering value to consumers and marks a significant step in our strategic business evolution”, said Rustom Godrej Joshi, Chairman and managing director, VVF (India) Limited.
WCCL, part of Wipro Enterprises, is among the largest consumer goods firms with sales of Rs10000 crore during FY23 and gets about half its revenues from international markets. Started in 1945 as a vanaspati brand, the company has a portfolio including soaps, liquid detergents, fabric softeners, dish wash and floor cleaners. Last year, it announced its entry into the food business in India with an ambition to become a significant player in the snack food, spices and ready-to-cook market. So far, it has acquired Nirapara, one of the top-selling traditional food brands and Brahmins, spice mix and ready to cook brand in Kerala.
“The addition of Jo, Doy, and Bacter Shield to our portfolio reinforces our commitment to enhance our offerings in the personal wash category in India and SAARC markets. This move not only expands our product offerings but also strengthens our position as a leading player in the region, enabling us to better serve the evolving needs of our consumers,” said Neeraj Khatri, chief executive, India and SAARC business at WCCL.
Source: Economic Times