Wipro Consumer Care & Lighting (WCCL) acquires South African personal care brand Canway Corporation to gain a foothold in the market.
WHO: Canway Corporation is a South African personal care company that markets mass brands such as Oh So Heavenly, Iwori, and IQ with a category portfolio including bath and shower, hand cream, body spray, and kids’ products. The company also has its own manufacturing plant and R&D center in Durban.
Wipro Consumer Care & Lighting is the $1 billion-plus arm of Wipro Enterprises. Founded in 1945 as a Vegetable Oil Company, Wipro Consumer Care & Lighting is one of the fastest-growing FMCG companies in India.
WHY: The transaction provides Wipro a foothold in the South African market, which is the largest personal care market in Africa and the second-largest economy of the continent.
IN THEIR OWN WORDS: “We are clear that we want a footprint in developing countries where we have a headway and penetration and consumption goes up. South Africa is a developing country with a per capita income of USD 6300, which is three times that of India. Canway has grown double-digit over the years. It gives us a tremendous base,” said Vineet Agrawal, Chief Executive Officer at WCCL.
- Wipro Consumer Care and Lighting (WCCL) has acquired South African personal care maker Canway Corporation.
- Canway posted revenues of around $21 million last year.
- Oh So Heavenly accounts for 80% of Canway’s sales, sold exclusively through Clicks, one of the leading health and beauty retailers in South Africa.
- The terms of the transaction were not disclosed.
- With this deal, WCCL now has a presence in India, South Africa, China, Malaysia, and the Philippines. International business accounted for nearly 51% of Wipro Consumer’s annual sales of a billion dollars in 2018.
- This is the second acquisition for WCCL in a year. In April, WCCL acquired Splash Corp., the Philippines’s largest personal care company, for USD 80 million in April.
- WCCL has spent $950 million in acquisitions. Canway is its 12th acquisition in the last 16 years
Photo: via Canway Corp