Acquisition of Zhongshan Ma Er includes personal care brands - Enear, Zici, and Vcnic, and fabric care brands - Pahnli and Sunew
Bangalore, India – September 22, 2016: Wipro Singapore Pte. Ltd, part of Wipro Consumer Care and Lighting, today announced that it has signed a definitive agreement to acquire 100% shareholding of Zhongshan Ma Er Daily Products Limited, a Chinese Fast Moving Consumer Goods (FMCG) company, in an all cash deal.
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.
Post acquisition, Wipro Unza, the South East Asian arm of Wipro Consumer Care and Lighting, which recorded revenues of RMB 82 million (USD 11 million) from its China business in 2007, 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 has a long history of successful acquisitions. These 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 formidable 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.
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.
Commenting on the transaction, Vineet Agrawal, Chief Executive Officer, Wipro Consumer Care and Lighting and Executive Director, Wipro Enterprises said, “This is an exciting milestone for us. 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. We are confident that with Wipro’s marketing expertise and its international distribution network, we will significantly expand our geographical presence and take our brands to new heights.”
“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.
About Wipro Consumer Care & Lighting:
Wipro Consumer Care & Lighting, part of Wipro Enterprises, is one of the fastest growing FMCG companies in India. It has presence in 18 countries predominantly in SAARC, ASEAN, MENA regions and also in the U K. It has 15 manufacturing units in China, India, Indonesia, Malaysia and Vietnam and has state of the art R & D facilities in India and Malaysia. Wipro Consumer Care & Lighting has an impressive portfolio of brands which includes soaps, toiletries, personal care products, baby care products, wellness products, electrical wire devices, domestic and commercial lighting and modular office furniture. Santoor, Chandrika, Glucovita, North West and Wipro Smartlite are leading brands in India. Enchanteur, Bio- essence and Romano are market leaders in ASEAN Countries. Yardley sells in over 40 countries. Wipro UNZA, the company formed after the acquisition of UNZA Holdings by Wipro Consumer Care & Lighting and is headquartered at Singapore, is a world leader in the Halal Cosmetics Category. In the B2B segment in India, Wipro Consumer Care & Lighting has established itself as a leader in commercial lighting, indoor lighting and office modular furniture.