The Hindu Business Line : Wipro Consumer Care Q2 revenues rise 30 pc

WIPRO Consumer Care and Lighting recorded second quarter revenues of Rs 116 crore and profit before interest and tax of Rs 16.7 crore - contributing 6 per cent to Wipro Ltd's total revenues of Rs 1,979 crore.

Revenues for the division grew 30 per cent over the previous corresponding period and 10 per cent during the quarter.

"Robust growth has been largely led by the Santoor brand, which has grown at over 30 per cent during the quarter," said Mr Vineet Agrawal, President.

Its commercial and industrial lighting division grew 27 per cent in the second quarter, and the brightness management products and energy management solutions have seen good demand, said Mr Agrawal, adding that the lighting business was growing strongly in smaller towns and cities.

Wipro's FMCG division has been focussing on entering newer market segments, through organic and inorganic modes. It recently acquired a health drink, Glucovita, from HLL.

The contribution of Glucovita to the revenues grew 34 per cent during the first half of the year. The second quarter saw a 10-11 per cent revenue growth by the Glucovita brand, said Mr Agrawal.

Chandrika, another brand being distributed by Wipro, saw strong growth of over 33 per cent during the quarter ended September 30.

The acquisitions will continue to contribute to margins, Mr Agrawal said, adding that the division had shown growth across all product categories.

Wipro Consumer Care and Lighting, which has been test marketing a natural laxative, Isabgol, under the Wipro Sanjeevani brand, said the product would be rolled out nationally. The total market size is about Rs 70-80 crore, according to Mr Agrawal.

The company's SafeWash liquid detergent test marketed in Punjab is being rolled out in the northern markets, he said.

Forays into office furniture

THE consumer care and lighting division has forayed into the office furniture business, riding on the back of its commercial lighting business.

Modular office furniture is a fast growing market and Wipro expects to leverage its commercial business to enter the market.

"It may take a couple of years before this segment contributes to revenues significantly, but we will be focussing on developing our in-house design team, tying up with captive suppliers and working on marketing this product to end-customers as well as through architects and builders," Mr Agrawal said.

For every rupee spent on lighting in a commercial building, Rs 5 is spent on furniture, according Wipro's estimates.

The company is now working on sourcing and selling but will move to captive suppliers working on designs from the company, he said.

"We are understanding the market now and expect to sell, based on quality of products, installation and the design inputs that we will build in-house,'' Mr Agrawal told Business Line.