Wipro to step up spread of Yardley’s contribution to revenue

The acquisition of Yardley, a personal care brand, has yielded positive returns to Wipro during the third quarter ended December 2009.

Revenues from Yardley have been consolidated from December 9 onwards. The UK-based brand is learnt to have contributed Rs 7.8 crore (around one per cent) to the revenues of Wipro Consumer Care and Lighting, the FMCG and lighting products arm of the company.

Yardley was acquired from the UK’s Lornamead Group in 2009 for Rs 215 crore. It was part of Wipro's effort to reach out to the premium segment, through Yardley's range of body sprays, soaps and talcum powder. "Most of our offerings are in the mass segment. Through Yardley, we hope to increase our presence in the premium segment," said Anil Chugh, senior-vice president, Wipro Consumer Care.

The company is expecting Yardley to contribute 5-7 per cent of its revenues in the next quarter for the FMCG division, on the back of growing demand for branded home care products. The industry growth for premium home care products is learnt to be 12-13 per cent. To tap the market, the company is looking at introducing Yardley's line of fine fragrances and male grooming toiletries in a year's time.

India makes up 30 per cent of Yardley's sales, while the rest is from West Asia. The company is looking at expanding its distribution network, by doubling its sales counters from 30,000 to 60,000. Yardley products are made in West Asia and India by third-party manufacturers.

The company now has two premium home care brands in its kitty, with Yardley and Unza, and expects the products to be complementary for its growth. "Yardley is positioned as slightly more premium than Unza, whereas Unza's brands, like Enchanter, have more categories. Unza's main markets are Malaysia, Vietnam, Indonesia, West Asia, Singapore and Hong Kong, whereas Yardley's markets are India and West Asia," said Chugh.

Wipro is concentraing on body sprays, talcum powder and soaps through its offerings.

The consumer care and lighting business grew 14 per cent, year on year, for the third quarter, to Rs 601 crore. The company reported growth in Vietnam, China and Indonesia. About 44 per cent of the division's revenues come from Indian household products, 40 per cent from its international business and 16 per cent from its institutional business, which consists of furniture, lighting and switches.

The company is aggresively looking to expand its presence in the premium office furniture segment, through international designers like Tim Wallace and Eric Chan. It manufactures furniture in its plant in Aurangabad, which has a capacity of 50,000 workstations. Wipro has five brands of furniture, three in the entry and mid-level segments, while two are premium brands. The division invested around Rs 70 crore during the first nine months of the year. It is also looking at the outdoor lighting segment as a focus growth area.