As part of its inorganic growth strategy, FMCG major Wipro Consumer Care & Lighting (WCCL) is eyeing acquisitions in the domestic and global markets. Enthused by its performance in Q1 FY 10, it is also chalking out an aggressive organic growth strategy which includes, expansion of its distribution network and manufacturing capacity in India. ?We are increasing our manufacturing capacity by 50% at our plant in Baddi (Himachal Pradesh). Also, we are doubling the manufacturing capacity of our plant in Hardwar,? said Vineet Agarwal, CEO of Wipro Consumer Care.
Wipro?s arch rival Godrej Consumer Products Ltd (GCPL) is also scouting for acquisitions in domestic as well as global markets. Like Wipro, Godrej Consumer Product is also beefing up its distribution network to reach out to wider target audience. With increasing competition, the market dynamics will soon change in the Rs 7,500 crore branded toilet soaps sector in India.
On Wipro?s acquisition strategy, Agarwal said, ?We are looking at acquisitions that will strategically fit into our product portfolio. After acquiring Unza brand, we are also scouting for acquisitions in global markets.?
According to Agarwal, Wipro?s core focus will be on good distribution and quality products to drive volumes in competitive markets in Q2 FY10. ?We will be increasing focus on rural markets too. Our brand Santoor has now become the largest soap brand in southern India,? he added. Incidentally, Wipro has not renewed its contract with cine star Saif Ali Khan. However, actor Madhavan will continue to feature in Wipro?s ad campaigns in southern states.
Across the road, Godrej Consumer Products is putting more emphasis on advertising strategy to woo new consumers. ?In Q1 FY10, we had increased our ad spend by 30%. We will be hiking ad budget in Q2 to gain high visibility for our brands,? said HK Press, vice-chairman of GCPL.
According to Press, GCPL?s main thrust will be on strong distribution, rural initiatives and quality products to pump up volumes. ?We are also on the look out for acquisitions in domestic and global markets. We are looking at emerging markets for new acquisitions,? said Press.
Hindustan Lever now leads the pack in the branded toilet soaps sector in India.