Bengaluru: Wipro Consumer Care and Lighting on Monday said it has signed a definitive agreement for the acquisition of Splash Corp., the largest personal care company in the Philippines. Splash, which achieved a turnover of $ 80 million last year, owns brands such as SkinWhite, Maxi-peel and Vitress.
The transaction strengthens the Wipro portfolio for consumer care in personal care and strengthens the footprint of the Southeast Asian market. The transaction value was not disclosed.
"This acquisition allows us to grow Wipro brands on the Philippine market by leveraging Splash's distribution power in all market segments. The Splash brands can be further expanded to other international markets where Wipro has a strong footprint and brands have latent shares. Splash brands are not only strong in the Philippines, but also have huge equity capital in several 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 the 11th acquisition by Wipro for consumers, and the ninth in the personal care segment. The company has made five acquisitions on the Indian market in the consumer behavior industry.
Wipro Consumer & Santoor, Chandrika, Glucovita, North West and Wipro Smartlite are leading brands in India. Enchanteur, Safi, Bio-essence and Romano are market leaders in the ASEAN countries. It also has a minority interest in consumer products, Happily Unmarried Marketing Pvt. Ltd., for its range of personal care products from Ustraa.
Other foreign consumer acquisitions of Wipro include the UK-based Yardley, the Singapore-based personal care company LD Waxson Unza Holdings and the Chinese company Zhongshan.
"We are convinced that with Wipro's marketing expertise and its international distribution network we will significantly expand our geographic presence and take our brands to new heights," said Rolando B. Hortaleza, CEO of Splash Corp.
In India, the seven best-selling categories for personal care are cosmetics, fragrance, men's care, skin care, bath and shower, hair care and oral care. Among them, specialized categories, such as cosmetics, perfumes, men's care products and skin care products, are meant to catch up with the growth of generic categories. By 2020, these specialized categories will contribute 40-45% to the total market by 2022, according to a 2018 report from market research agency RedSeer Consulting.
"Some Wipro competitors in the consumer space, such as Marico and Emami, have also made several foreign acquisitions. The Wipro acquisition, although possibly a company from the Philippines, directly strengthens the India portfolio … because they (Wipro and competitors) believe that since they have experience in developing consumer products in India, acquired brands can be scaled faster in the Indian market, "said Harminder Sahni, managing director at Wazir Advisors.