Wipro Consumer Care and Lighting on Thursday announced the acquisition of a Chinese fast-moving consumer goods (FMCG) company to expand its footprints in the southern part of the country. The company did not disclose the acquisition amount, but said it will be buying Zhongshan Ma Er Daily Products in an all-cash deal.
The acquisition is the latest in a series of buyouts by Wipro Enterprises to have a global presence. Wipro Consumer Care's international businesses would now contribute 55 per cent of its total global revenues, the company said in a statement.
"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," Vineet Agrawal, Chief Executive Officer, Wipro Consumer Care and Lighting and Executive Director, Wipro Enterprises, said in the statement.
"The combined entity solidifies our market position in personal care products, which is a core category for us," he added.
Besides China, Zhongshan Ma Er Daily Products also has a presence in neighbouring Hong Kong. The Chinese firm said that it will be a win-win deal for both the entities.
"This (the acquisition) 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,' Chen Rui Qiang, Chief Executive Officer and Founder, Zhongshan Ma Er said in the joint statement.
"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," he added.
Wipro Consumer Care and Lighting is a part of Wipro Enterprises, which is an unlisted entity.
The IT arm of the Azim Premji Group, Wipro, is listed on the stock exchanges; the share price of the company closed at Rs 481.50, down 0.36 per cent from its previous close, on the BSE.