The Indian firm –WIPRO Consumer Care and Lighting (WCCL)-has acquired the South Africa based personal care company Canway Corp. The acquired company owns brands like Oh So Heavenly, Iwori, and IQ. A definitive agreement to take over the company was signed between the two companies and the market circles indicate that the transaction will be effected in early next month for an undisclosed value. .
Canway ‘s revenue for 2018 was US$21 million. The parent company of WCCL, WIPRO, which is heavily into IT, has footprints across the world and is one among the top five IT companies in India. WCCL, which has revenue of over US$1 billion plus has spent US$950 million in acquisitions so far, across the product range. Incidentally, Canway is its 12th acquisition in the last 16 years or so and the second one this year. Early this year (April) WCCL acquired Splash Corp., the Philippines’s largest personal care company.
Oh So Heavenly, is the flagship company of Canway and accounts for 80% of the sales. It is a popular personal care brand in South Africa, and is piggy-riding with Clicks, one of the leading health and beauty retailers in the country for markeing purposes.
The other product -The Iwori –an organic product made of organic African ingredients, was launched recently with considerable success. The Iwori has its own manufacturing plant and research and development centre in Durban.
India, has a lucrative personal care market, which include cosmetics, fragrance, men’s grooming, skincare, bath and shower, hair care and oral care. The growing and high spending middle class in India provides a steady market for personal care products. The estimate is that by 2020 the specialized personal care products will contribute 40-45% to the overall personal care market.
WCCL is tight lipped about when the products are going to be launched in India. But the market expectation is that it would take place very soon. Market analysts have given thumps up to the deal and expect the products would be well received in the Indian market.
