“This acquisition will help the company leapfrog into the leading position in South China’s personal care market besides adding critical brands to the portfolio of Wipro Consumer Care and Lighting,” Wipro said.
Zhongshan Ma Er has a strong footprint in China and Hong Kong and its brand portfolio includes leading personal care brands Enear, Zici, and Vcnic, comprising bath & shower products, and fabric care brands Pahnli and Sunew, the Indian company said.
In addition to consumer goods, Wipro is also present in IT services, and till recently, in IT hardware.
Post acquisition, Wipro Unza, the South East Asian arm of Wipro Consumer Care and Lighting, will touch an annual run rate of close to RMB 1 billon ($150 million).
Wipro Consumer Care’s International businesses would now contribute 55% of its total global revenues.
Wipro Consumer Care previous acquisitions include Glucovita in 2003, Chandrika in 2004, Unza in 2007, Yardley (for Asia, Middle East, North Africa and Australasia) in 2009, Yardley UK in 2012, and L.D. Waxsons Group in 2012.
Wipro Unza has a presence in China with brands like Enchanteur and Romano. The company enjoys market leading positions in the Personal Wash and Deodorant Categories in Guangdong and Hainan provinces.
Commenting on the transaction, Vineet Agrawal, Chief Executive Officer, Wipro Consumer Care and Lighting and Executive Director, Wipro Enterprises said, “This transaction propels us to a strong number three position in the bath and shower market in Southern China, and significantly strengthens our fabric care business. The combined entity solidifies our market position in personal care products, which is a core category for us. I am confident that we can further leverage the strengths of the combined entities in marketing, R&D, and distribution to accelerate the growth of all our core brands, given our proven track record in business integration.”
Commenting on the acquisition, Chen Rui Qiang, Chief Executive Officer and Founder, Zhongshan Ma Er said, “We are delighted to be a part of the Wipro group. This gives us immediate access to resources that will help us fuel faster growth in our business, and enable us to unlock the true potential of our brands. Furthermore, Wipro shares our focus on gaining critical insights from consumer research as well as in driving operational efficiency.”
“This acquisition will enable us to grow in China market by leveraging Ma Er’s distribution strength in third- and fourth-tier cities. This buy will help expand our portfolio of well-established personal care brands, which currently include Enchanteur and Romano. This investment demonstrates our commitment to the China market following our acquisition of L.D. Waxsons business,” noted Nagender Arya, Regional Director (East Asia, Middle East and Africa), Wipro Consumer Care.
The transaction is subject to regulatory approvals.
BNP Paribas acted as the exclusive financial adviser to Zhongshan Ma Er.