Wipro Consumer Care & Lighting's Singapore subsidiary on Thursday announced acquiring 100 per cent shareholding of Zhongshan Ma Er Daily Products Ltd of China in an all-cash deal for an undisclosed amount.
"The acquisition includes personal care brands of the Chinese fast moving consumer goods (FMCG) firm such as Enear, Zici and Vcnic and fabric care brands Pahnli and Sunew," said a Wipro official here.
The buyout will help the city-based leading Wipro FMCG to emerge as a leader in south China's personal care market and add to its own brands.
"Post-acquisition, our South East Asian arm Wipro Unza will post an annual run rate of $150 million as against $11 million in 2007 from its China business," the company said in a statement here.
The company acquired many brands over the years, including Glucovita in 2003, Chandrika in 2004, Unza in 2007, Yardley (for Asia, Middle East, North Africa and Australasia) in 2009, Yardley in Britain in 2012 and L.D. Waxsons Group in 2012.
The company's Consumer Care's international businesses will contribute 55 per cent of its global revenues.
Wipro Unza has a formidable presence in China with brands like Enchanteur and Romano and is a market leader in personal wash and deodorant categories in Guangdong and Hainan provinces.
"The transaction propels us to third position in the bath and shower market in southern China and strengthens our fabric care business," Wipro Consumer Care Chief Executive Officer Vineet Agrawal told reporters.
Zhongshan also has a footprint in China and Hong Kong and its brands (Zici, Vcnic, Pahnli and Sunew are market leaders.
"Wipro gives us access to resources that will help us grow faster and enable us to unlock the potential of our brands," said Zhongshan's Chief Executive Chen Rui Qiang.
The acquisition will also enable Wipro to grow in China market by leveraging Ma Er's distribution strength in three-tier and four-tier cities and expand its portfolio of brands.
"The investment demonstrates our commitment to the China market following our acquisition of L.D. Waxsons business," noted Wipro Consumer Care Regiona Director Nagender Arya.
--IANS
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