08 May 2019
Posted in Press Release
Splash Corp will strengthen Wipro’s Southeast Asian footprint, says GlobalData
Following the recent news that Wipro Consumer Care and Lighting (WCCL), the consumer care business of software provider Wipro Ltd, has signed a definitive agreement to acquire the Philippines-based personal care company Splash Corporation,
Shagun Sachdeva, Consumer Insights Analyst at GlobalData, a leading data and analytics company, offers her view on the deal:
“The move is in line with Wipro’s strategy to strengthen its consumer care portfolio in personal care and complete its Southeast Asian footprint. The transaction will enhance Wipro’s presence in the Philippines by leveraging Splash’s longstanding distribution hold across multiple markets with high-end sales capacity. The deal takes place at a time when there is a huge demand of personal care and beauty products across all socio-economic classes in the country.
“Wipro was already scouting for opportunities to diversify its consumer business – especially in the personal care segment – and expand its brand presence in emerging markets. Wipro has acquired 11 companies over the last 15 years in consumer care segment, and nine in the personal care segment, mostly in Southeast Asia. Following this acquisition, the Philippines will not only become WCCL’s fourth largest market, after India, China and Malaysia, but also strengthen its existing personal care product portfolio, adding exfoliants and leave-in hair care range to its existing product categories.
“Splash will allow Wipro to meet its internal return on investment (RoI) threshold, increase overseas revenue by 3% from last year, maintain product quality and widen its business horizon. Splash, being one of the top five Filipino market players, earns 85% of its revenue in the local market. The company reported US$80m sales in 2018 with the iconic brands such as SkinWhite, Maxi-peelexfoliants and Vitress. It has tremendous equity in multiple international markets like Indonesia, Vietnam, Hong Kong, Middle East and Nigeria. Splash can take its brands to new heights in international markets by leveraging on Wipro’s strong marketing expertise and international distribution network.”