Wipro Consumer Care and Lighting has been aggressively expanding its soap portfolio, acquiring a 100% stake in personal care brands Jo, Doy, and Bacter Shield from Indian contract manufacturer VVF Ltd.

WHO: Jo toilet soap has a presence in North, East, and West markets in India, Doy operates in the premium segment with differentiated positioning, and Bacter Shield has an antibacterial range of soaps and handwash.

Founded by Godrej Pallonji Joshi in 1939 as The Vegetable Vitamin Foods Company in Mumbai, VVF Ltd. is a significant contract manufacturer of soaps, shampoo, conditioners, hand sanitizers, creams, and lotions with manufacturing plants across four continents.

Wipro Consumer Care and 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: Attempting to augment its market share in the consumer care segment, Wipro Consumer Care and Lighting said it has invested more than $1 billion to fund 15 acquisitions since 2003. The company is a leading player in the personal wash category, with an 11% market share with its flagship brands Chandrika and Santoor. The acquisition will be a strategic expansion for Wipro in the personal wash segment.

IN THEIR OWN WORDS: “Apart from Santoor, we have two other offerings in the toilet soap business, with Chandrika being a sub-premium offering and Yardley a premium offering," said Neeraj Khatri, Chief Executive, Wipro Consumer Care and Lighting, India and SAARC business. “One of the segments we were not present in was the sub-popular segment. That segment is around 25% by volume and 20% by value of the overall soaps market. So, this deal is a strategic fit in the personal wash space."

"The divestment of Jo, Doy, and Bacter Shield to Wipro aligns with our focus on optimising our portfolio and underscores our confidence in Wipro's ability to nurture and elevate these brands," VVF (India) (earlier known as Vegetable Vitamins Foods Co) Chairman and Managing Director Rustom Godrej Joshi said.

DETAILS:

• Wipro Consumer Care and Lighting acquired a 100% stake in personal care brands Jo, Doy, and Bacter Shield from VVF (India) Ltd. The financial terms of the deal were not released.
• These three brands together recorded a revenue of more than ₹210 crore ($26 million) for VVF during FY23.
• In March 2020, Wipro Consumer Care Ventures, the venture capital fund of Wipro Consumer Care and Lighting, acquired a minority stake in the Indian personal care company LetsShave.
• In 2019, Wipro Consumer Care and Lighting acquired South African personal care maker Canway Corporation and Splash Corp., the Philippines’s largest personal care company, for $80 million in April.