Wipro's consumer care business can be divided into three segments domestic, international and institutional (mainly infrastructure and lighting).
While the overall FMCG market in India is growing at 13-14%, Wipro's domestic business is growing at 25% year-on-year, which is a positive indication, Chugh said. Its international business has grown 17%, while its institutional business has shown a flat growth. We will take another three-four quarters to bounce back in this segment, added Chugh.
An extended summer season this year seems to be one of the factors contributing to the growth of Wipro consumer care.
Wipro launched Chandrika hand sanitisers this year after it saw a potential business opportunity arising out of the swine flu pandemic. Wipro has also entered the skincare market with Singapore-based Unza brand portfolio, including Romano and Enchanteur, to stay competitive in the market of consumer products.
Santoor, which remains the number one toilet soap brand in south India, accumulates about 55% of the volumes from the rural markets.
The rural market has been especially strong in the recent past, as it does not have any impact of recessionary sentiments. During times of recession, the urban market portrays a more cautious buying behavior, said Chugh.