Bengaluru-based Wipro Consumer Care and Lighting has bought soap brands Jo, Doy and Bacter Shield from Mumbai-based VVF Ltd, marking the company’s 15th acquisition till date and the third in the last twelve months, it said on Tuesday.
In April this year, the company had acquired Kerala-based packaged foods brand Brahmins, while in December 2022, the company had picked up Nirapara, also a packaged foods brand from Kerala. The two acquisitions had helped Wipro Consumer Care foray into the packaged foods market in India.
The latest buy will see Wipro Consumer Care, which is part of the Azim-Premji-led Wipro Enterprises, strengthen its presence in the personal wash segment, where it has brands such as Santoor, the country’s second-largest soap with FY23 sales of Rs 2,650 crore, and Chandrika, an Ayurvedic soap.
The acquisition will also give the company a strong foothold in the north and east markets, since Jo toilet soap has a play in the North, East and West markets in India, Neeraj Khatri, chief executive, Wipro Consumer Care and Lighting, India, and SAARC business, said, in a conversation with FE.
Doy operates in the premium soaps segment, and Bacter Shield has an antibacterial range of soaps and handwash, he said.
The move will also see the company compete fiercely with Hindustan Unilever (HUL), the maker of Lux and Lifebuoy brands, Godrej Consumer Products (GCPL), which is the maker of Cinthol and Godrej No 1 and Reckitt Benckiser, which is the manufacturer of Dettol, who are strong incumbents in the Rs 28,000-crore domestic soaps market.
HUL’s Lifebuoy is the country’s largest selling soap brand. In recent years, Wipro and HUL have fought fiercely for the number two position with brands Santoor and Lux respectively.
While Wipro Consumer Care did not specify the deal size of its latest buy, analysts estimate the transaction size at around Rs 500-525 crore, which is around two-and-a-half times FY23 sales of Rs 210 crore. VVF, which is a contract manufacturer of soaps, had sold its Aramusk and Moloy brands to Wipro Consumer Care in 2011.
“The addition of Jo, Doy, and Bacter Shield to our portfolio reinforces our commitment to enhance our offerings in the personal wash category in India and SAARC (South Asian) markets,” Khatri said.
“This move not only expands our product offerings but also strengthens our position as a leading player in the region, enabling us to better serve the evolving needs of our consumers,” he added.
Apart from soaps, VVF is a large contract manufacturer of shampoos, conditioners, hand sanitizers, creams and lotions in India.
Wipro Consumer Care also sells Glucovita energy drink and home care products including Safewash liquid detergent, Softouch fabric conditioner, and Yardley talcum powder and deodorants among other products.
In FY23, Wipro Consumer Care recorded sales of Rs10,000 crore, with 51% of this generated from its overseas operations and 49% from the Indian market.