Wipro Singapore Pte, a part of Wipro Consumer Care and Lighting, on Thursday announced the acquisition of Chinese FMCG firm Zhongshan Ma Er Daily Products for an undisclosed sum, in an all-cash deal. Both the firms have signed an agreement to this effect.
This is the second largest and 10th acquisition made by Wipro Consumer Care since 2003. Its largest acquisition till date was that of Unza in 2007. BNP Paribas acted as the exclusive financial adviser to Zhongshan Ma Er.
“This acquisition will help us grow our marketshare in South China’s personal care market. This also helps us expand our brand portfolio,” Vineet Agrawal, chief executive officer, Wipro Consumer Care & Lighting told reporters.
Wipro has funded the acquisition through its internal accruals. Zhongshan Ma Er has a revenue run rate of $75 million currently.
Post acquisition, Wipro Unza, the South East Asian arm of Wipro Consumer Care and Lighting, which recorded revenues of RMB 82 million ($11 million) from its China business in 2007, will touch an annual run rate of close to RMB 1 billon ($150 million). Wipro Consumer Care’s International businesses would now contribute 55% of its total global revenues, he said.
Wipro Consumer Care has a long history of successful acquisitions. These include 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. Till now, the company has spent around $600 million for all these acquisitions.
Wipro Unza’s portfolio of brands in China include Enchanteur and Romano. The company enjoys market leading positions in the Personal Wash and Deodorant Categories in Guangdong and Hainan provinces. The acquisition of Zhongshan Ma Er will enable Wipro to expand its portfolio into liquid detergents and shower gel.
Zhongshan Ma Er has a strong footprint in China and Hong Kong and its brand portfolio includes leading personal care brands Enear, Zici, and Vcnic, comprising bath & shower products, and fabric care brands Pahnli and Sunew.
“With this acquisition, we will rise to the number three position in bath and shower market in Southern China. The company has 55% market share in shower gel and 45% in liquid detergents market,” Agrawal added.
As part of the deal, Wipro will have access to manufacturing facility for three years.