The Hindu Business Line : Wipro Consumer enters isabgol segment; posts 31% growth

The laxative product is currently being test-marketed in western Uttar Pradesh, and will be rolled out nationally in the near future, said the President of the division, Mr Vineet Agrawal.

The launch is in tune with Wipro's strategy to look at niche growth areas in the ayurvedic market, and Wipro Sanjeevani may emerge as the umbrella brand for more introductions in future.

The consumer care and lighting division posted a 31 per cent topline growth in the first quarter of the ongoing financial year tracking good performances by Santoor soap and the commercial lighting business. "Santoor has reported a growth of 20 per cent in the first quarter, while the commercial lighting business has done well on our positioning of brightness management," Mr Agrawal said.

He said the growth in the first half was mainly driven by organic products.

"Only six per cent of our growth came from acquired brands like Chandrika and Glucovita and the remaining 25 per cent growth was accounted by existing products," Mr Agrawal added.

Wipro closed the deal to acquire the Rs 25 crore-Chandrika ayurvedic soap in June this year, while Glucovita was acquired earlier from Hindustan Lever Ltd. With the transaction behind it, Wipro is expected to take Chandrika national.

"Chandrika has reported between seven to 28 per cent growth in its strong markets where we were marketing and distributing it prior to the deal," Mr Agrawal said.

The division with a turnover of Rs 365 crore had reported a 21 per cent growth in 2003-04.

Meanwhile, Wipro is waiting for the Karnataka Government to finalise an advisor to decide on the disinvestment of Karnataka Soaps & Detergents Ltd, which owns the Mysore Sandal brand. Wipro has already expressed its interest in the business, but the State is yet to make up its mind on whether it wants to divest the public sector undertaking fully or partially. He said rural demand for budget soaps could increase depending on investments and a good monsoon.

"But a pick-up in the rural demand should help us, as our main brands like Santoor generate almost 55 per cent of the business from there," he added.

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