Wipro Consumer Care to acquire Chinese FMCG co

Wipro Consumer Care to acquire Chinese FMCG co

Wipro Consumer Care to acquire Chinese FMCG co

Wipro Consumer Care on Thursday announced that it would acquire Chinese FMCG company Zhongshan Ma Er Daily Products in an all-cash deal, which will be completed by the end of October, and the company expects revenues from the same month.

This is the 10th acquisition for Wipro Consumer Care. It started acquiring companies from 2003, and the first one was Glucovita, followed by Chandrika in 2004, and Unza in 2007.

 “With this acquisition, we are adding more brands, and our international businesses would now contribute 55% of our total global revenues. Our revenues in FY 2016 were Rs 5,942 crore. Zhongshan has a strong footprint in China and Hong Kong. This adds to our distribution muscle,” Wipro Consumer Care and Lighting CEO Vineet Agrawal said.

The Chinese company’s brand portfolio includes shower brands — Enear, Zici and Vcnic, and fabric care brands — Pahnli and Sunew. “With Pahnli and Sunew, we are entering into liquid detergent, which is a fast-growing category in China, Vietnam, Indonesia, Malaysia, India and the Middle East. The Chinese firm already enjoys a market share of 10% in this category,” said Agrawal.

Post acquisition, Wipro Unza, the Southeast Asian arm of Wipro Consumer Care and Lighting, which recorded revenues of $11 million, from its China business in 2007, will touch an annual run rate of close to $150 million. Wipro Unza has its presence in China with brands like Enchanteur and Romano.

Including this acquisition, the company’s total headcount touches 10,000. “We already have two manufacturing facilities in China, and we will decide whether to have one more there. Apart from eight manufacturing units in India, at present, we have seven units outside the country,” he said.
DH News Service

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