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Wipro Consumer buys South Africa’s Canway

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Deal size may be about ₹350 crore

Wipro Consumer Care & Lighting has signed a definitive agreement to acquire Canway Corporation, a South African personal care firm. The deal, which is Wipro Consumer’s second this year, will help the company have access to brands such as Oh So Heavenly, Iwori and IQ and also expand to other African countries like Zambia and Namibia.

Wipro refused to divulge financial details of the deal, however, the size of the acquisition is estimated to be in the range of ₹300 to ₹350 core. Canway Corporation reported a revenue of $21 million in 2018.

Addressing the media here on Tuesday, Vineet Agrawal, CEO, Wipro Consumer Care & Lighting, said, “This is our 12th acquisition in the last 16 years.

“This acquisition gives Wipro Consumer a significant entry into South Africa and other African markets, he added. The transaction is subject to the approval of the regulatory authorities, as per the company. In April Wipro Consumer bought Splash Corp., a Philippines personal care firm, to tap into hair colour and skin whitening segments. The deal is expected to add $80 million to its top-line annually. “It is an important milestone for us given our vision of being among the top three players in personal care in Asia and Africa. We are excited to be in South Africa, the largest personal care market in Africa and the second-largest economy of the Continent. Canway is an ideal company to partner with as the team is remarkably passionate and entrepreneurial,” said Mr. Agrawal.

Oh So Heavenly products are exclusively sold through Clicks, one of the health and beauty retailers in South Africa. The brand enjoys leadership in multiple categories such as bath and shower, hand creams, fragranced body sprays and kids products, as per Wipro.

Canway Corporation is said to be a leader in the gifting segment that constitutes a large portion of the South African personal care market. The company has its manufacturing plant and R&D centre in Durban.

“This acquisition enables us to grow in South Africa and African markets by leveraging the strong consumer understanding of the team here in South Africa. The Oh So Heavenly brand portfolio can be expanded further to other international markets where Wipro has a strong footprint” said Raghav Swaminathan, CFO, Wipro Enterprises.

Andre Barnard, CEO, and founder of Canway said, “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.”

International revenue contributes more than half to Wipro’s top-line of ₹7,150 crore annually. Malaysia is the biggest market at $150 million followed by China at $125 million. Products like Santoor, Chandrika, Glucovita, North West and Wipro Smartlite are leading brands in India while Enchanteur, afi, Bio- essence, and Romano are market leaders in ASEAN countries, according to the company.

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Printable version | Dec 15, 2019 10:16:35 PM | https://www.thehindu.com/business/wipro-consumer-buys-south-africas-canway/article30152553.ece

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