Wipro Consumer Care acquisition creates South China opportunities

By Natasha Spencer

- Last updated on GMT

Wipro Consumer Care acquisition of personal care company

Related tags: China, Southeast asia, East asia

The India-based FMCG  company, Wipro Consumer Care and Lighting, hopes its acquisition of Zhongshan Ma Er, a family-run Chinese business, will leverage its position in the South Chinese market.

The India-based FMCG  company, Wipro Consumer Care and Lighting, hopes its acquisition of Zhongshan Ma Er, a family-run Chinese business, will leverage its position in the South Chinese market.

Wipro Singapore, part of Wipro Consumer Care and Lighting, has signed an agreement to acquire 100% shareholding of Zhongshan Ma Er Daily Products.

In the acquisition of the Chinese FMCG company, in an all-cash deal, Wipro has acquired Zhongshan Ma Er’s personal care brands including Enear, Zici and Vcnic.

Zhongshan Ma Er, a family-run business based in South China's Guangdong province, already has a strong brand identity and presence in both China and Hong Kong, which Wipro Consumer Care and Lighting will be looking to build upon.

Wipro Consumer Care and Lighting, part of Wipro Enterprises, is a leading FMCG company in India, with a recognisable presence in 18 countries predominantly in ASEAN, South Asian Association for Regional Cooperation (SAARC) and the Middle-East and Africa (MENA) regions.

The FMCG company produces its diverse portfolio of brands which includes soaps, toiletries, personal care products and baby care products at its 15 manufacturing units in China, India, Indonesia, Malaysia and Vietnam and has R&D facilities in India and Malaysia.

APAC market position

Wipro Unza, the company’s South East Asian brand is set to reach an annual run rate of close to RMB 1 bn ($150 million) from its China business, up from recorded revenues of RMB 82 million ($11 million) in 2007.

Following the acquisition, Wipro Consumer Care’s global operations would now contribute 55% of its total global revenues. The Zhongshan Ma Er is the latest in a long line of acquisitions in recent years, including Glucovita in 2003, Chandrika in 2004, Unza in 2007, Yardley (for Asia, Middle East, North Africa and Australasia) in 2009, Yardley UK in 2012, and L.D. Waxsons Group in 2012.

Commenting on the acquisition, Vineet Agrawal, CEO, Wipro Consumer Care and Lighting and Executive Director, Wipro Enterprises said: “This transaction propels us to a strong number three position in the bath and shower market in Southern China. The combined entity solidifies our market position in personal care products, which is a core category for u​s.”

A portfolio of household brands

With popular brands such as Enchanteur and Romano, Wipro Unza has a recognisable market leading position in the personal wash and deodorant sectors, particularly in the Guangdong and Hainan provinces. Headquartered in Singapore,Wipro Unza is also a leader in the Halal cosmetics segment, an emerging trend that is growing in popularity.

Chen Rui Qiang, Chief Executive Officer and Founder, Zhongshan Ma Er, added: “This gives us immediate access to resources that will help us fuel faster growth in our business​”.

Rui Qiang went on to comment on the mutual strategy that exists between Wipro and Zhongshan Ma Er: “Furthermore, Wipro shares our focus on gaining critical insights from consumer research as well as in driving operational efficiency​.”

Wipro has marketed and distributed its brand portfolio internationally, which Zhongshan Ma Er will now gain access to both its expertise and network.

This acquisition will enable us to grow in China market by leveraging Ma Er’s distribution strength in third- and fourth-tier cities​,” Nagender Arya, Regional Director (East Asia, Middle East and Africa), Wipro Consumer Care.

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