Bengaluru: Wipro Consumer Care and Lighting announced on Monday that it has signed a definitive agreement to acquire Splash Corp., the largest personal care company in the Philippines. Splash, which reported revenue of $ 80 million last year, has brands such as SkinWhite, Maxi-peel and Vitress.
The transaction strengthens Wipro's customer care portfolio in personal care and strengthens its presence in the Southeast Asian market. The value of the transaction was not disclosed.
"This acquisition allows us to develop Wipro brands in the Philippine market, leveraging the strength of Splash's distribution across all market segments. Splash brands can be expanded to other international markets, where Wipro has a strong presence and brands have hidden patrimony. Splash brands are not only strong in the Philippines but also have tremendous equity in many international markets such as Indonesia, Vietnam, Hong Kong, the Middle East and Nigeria, "Nagender Arya, regional director (East Asia, Africa and Europe), Wipro Consumer Care said in a statement.
This is Wipro's 11th consumer business acquisition and ninth in the personal care segment. The company has made five acquisitions in the Indian market in the line of consumption lines.
Santoor, Chandrika, Glucovita, North West and Wipro Smartlite from Wipro Consumer are leading brands in India. Enchanteur, Safi, Bio-essence and Romano are market leaders in the ASEAN countries. It also holds a minority stake in the consumer products company, Happily Unmarried Marketing Pvt. Ltd, for its range of Ustraa personal care products.
Other consumer acquisitions overseas by Wipro include LD Waxson Unza Holdings, a UK-based personal care company based in Yardley, and Zhongshan, China.
"We are confident that with Wipro's marketing expertise and its international distribution network, we will significantly expand our geographic footprint and bring our brands to new heights," said Rolando B. Hortaleza, chief executive of Splash Corp.
In India, the seven best-selling personal care categories include cosmetics, fragrances, men's care, skin care, bath and shower, hair care and oral hygiene. Among them, specialized categories, such as cosmetics, fragrances, men's care and skin care, must overcome the growth of generic categories. By 2020, these specialized categories will contribute 40-45% to the global market by 2022, according to a 2018 report from market research firm RedSeer Consulting.
"Some of Wipro's competitors in consumer space, such as Marico and Emami, have also made several acquisitions overseas. The Wipro acquisition, although it may be a Filipino company, directly strengthens India's portfolio … because they (Wipro and competitors) believe that because they already have experience in developing consumer products in India, acquired brands can be scaled up more quickly in the Indian market. said Harminder Sahni, director of Wazir Advisors.