Wipro acquires largest Filipino personal care brand

Wipro Consumer Care, a subsidiary of Indian conglomerate Wipro Ltd, said on April 29 that it has entered into an agreement to acquire Splash Corp, a Philippines-based personal products maker

May 7, 2019

Splash is the largest Filipino personal care manufacturer and recorded revenues of US$80 million last year

Wipro’s consumer products includes toiletries and personal care items to electrical wiring and lighting products

FMCG is the 4th largest part of the Indian economy, in which household and personal care account for 50%

Increasing demand of personal care products with organic formulations has boosted the market for this segment

Wipro Consumer Care, a subsidiary of Indian conglomerate Wipro Ltd, said on April 29 that it has entered into an agreement to acquire Splash Corp, a Philippines-based personal products maker. The deal will help Wipro gain personal care brands such as SkinWhite, Maxi-peel, Vitress, on way to expanding market in the Southeast Asian region. Splash is the largest Filipino personal care player and recorded revenues of US$80 million last year, Wipro added. Wipro Consumer Care’s products include toiletries and personal care items to electrical wiring and lighting products as well as modular office furniture. The deal comes amid a rapid expansion of India’s FMCG market owing to improving purchasing power and awareness.

Apart from India, Wipro supplies personal care and skin care products to Southeast Asia and West Asia. Catering to over 40 countries, Wipro operates eight production plants in India, and seven overseas. Fast moving consumer goods (FMCG) make up the 4th largest component of the Indian economy, in which household and personal care account for 50 per cent of the total space. The sector was valued at around US$52.8 billion in 2017-18, and is anticipated to grow at a compound annual growth rate (CAGR) of 27.9 per cent to reach US$103.7 billion by 2020. Meanwhile, the increasing demand for personal care products containing Ayurvedic formulations by the young and old alike has boosted the market for this segment.

The market potential has inspired mixing of natural ingredients into products such as shampoos, soaps, skincare creams, oils, fragrances, toothpaste, shaving products, among others. This has spread from India to globally, maximising the potential of the Indian FMCG sector. India retail market is also expected to reach US$1.1 trillion by 2020 from US$840 billion in 2017, with modern trade expected to grow at 20-25 per cent per annum, which is likely to boost revenues of FMCG companies, as per the Department of Commerce. Simultaneously, revenues from the FMCG sector is expected to increase to US$103.7 billion by 2020 from US$52.8 billion in 2018. The potential has led to investment, innovation and job creation.