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Wipro Ltd today announced that it has signed an agreement with Lornamead Group to acquire the Yardley business in the UK and many other select countries of Europe (excluding Germany and Austria).
This transaction further expands the geographic reach of the Yardley portfolio already owned by Wipro. Wipro Consumer Care and Lighting (the FMCG arm of Wipro Ltd) acquired the Yardley portfolio for Asia, Middle East, North Africa and Australasia from Lornamead in December 2009.
Wipro will also acquire the “Woods of Windsor” business, another heritage brand in the UK, which is well known for its floral fragrance led portfolio in personal care segment.
“Given the brand’s performance it was only logical to own both the brands in its home market in the UK which in FY12 clocked a revenue of Rs 29.6 crore ($6.2 million). We will be able to leverage the brand’s core values and offer new products to consumers across our markets and are confident that we will be able to develop the Yardley brand further especially by using our strong R&D and international footprint. Yardley in the UK will see sustained brand building initiatives,” said Mr Nagender Arya, Regional Director (East Asia, Middle East and Africa), Wipro Consumer Care and Lighting.
According to Mr Anil Chugh, senior Vice-President of Wipro Consumer Care, Yardley had performed very well since its acquisition.
Established in 1770, Yardley is one of the world’s oldest brands in the personal care category with fragrance, bath & shower and skin care products.
Growth of the Yardley brand in India, he said, was primarily, through deodorants that constitute 60 per cent of the sale. The company has also launched its own facewash under the Yardley brand. Plans are afoot to strengthen the floral fragrance section following the acquisitions.
The deodorant market in India is pegged at Rs 700 crore. Yardley also has some offerings in the high-end perfumes segment.
“We intend to strengthen the Yardley brand as a pemium product in India. Having brand ambassadors such as Kartina Kaif has given the brand the necessary boost,” he added.
Wipro’s mass market offerings include “Santoor” while “Yardley” is a premium offering. Its presence in the ayurvedic soap segment is through the “Chandrika” brand.
Results
The company has reported a profit (earnings before interest and tax) of Rs 114 crore for the quarter ended June 2012 – a growth of 27 per cent over the corresponding quarter last fiscal.
Its revenues for the period stood at Rs 979 crore.
The Wipro stock was trading at Rs 345.50, down by 3.07 per cent, at the BSE at 2.45 p.m. on Tuesday.
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