Wipro to ramp up soap production

Getting a boost from the performance of its soap brands, Wipro Consumer Care and Lighting, the consumer care business of Wipro is pumping in about Rs 100 crore to expand its existing soap lines. The Bangalore-headquartered company is planning to expand the capacities of its soap manufacturing plants, both in Tumkur in Karnataka and Haridwar in Uttarakhand by putting up one soap line in each of them.

“Our soaps are really doing well. Going by the present run rate, our Santoor business will cross the $200 million per annum mark while the Enchanter business is expected to cross the $100 million mark. The Yardley brand, which we acquired for about $22-23 million, is now giving us $43 million in revenues on an annual basis. We expect our soap portfolio to grow stronger and we plan to add capacity both in Tumkur and in Haridwar,” Vineet Agrawal, president of Wipro Consumer Care and Lighting told Business Standard..

In the quarter-ended September 30, 2011, Santoor brand has grown over 26 per cent while the Yardley portfolio has grown 36 per cent in India. Launched in 1985, Santoor, the flagship brand of Wipro Consumer Care is already the number three soap brand in India after Lux and Lifebuoy of Hindustan Unilever in the toilet soap category. This has established itself as a leading soap brand in South India. Wipro has now started manufacturing its Yardley soaps out of its Tumkur facility in Karnataka.

Wipro has already upgraded its fatty acid and soap chip manufacturing plants in Amalner (In Maharashtra) other than setting up a new soap chip manufacturing plant in Amalner.

Agrawal said with the onset of winter, the company was expecting a strong demand for its Santoor glycerin and Chandrika glycerin soaps. “From soap perspective, we will focus a lot more in Santoor glycerin. It is steadily gaining market share every winter. It has helped us to gain a lot of market share,” he added.

Wipro Consumer Care and Lighting reported revenues of Rs 800 crore ($163 million) for the quarter ended September 30, 2011, an increase of 20 per cent as compared with the corresponding quarter in the previous fiscal. Its operating profit at Rs 88.2 crore ($18 million) in the quarter, saw an increase of six per cent YoY. Wipro Consumer Care and Lighting accounts for about nine per cent of Wipro’s consolidated revenues.

The company said its institutional business which comprises of commercial lighting and furniture business did well during the quarter.

Driven by the LED lighting ranges, its commercial lighting grew about 24 per cent during the quarter. WCCL’s Unza business did well during the quarter with China leading with a growth of 26 per cent.