KUALA LUMPUR: Wipro Unza Holdings (Singapore) is further extending its footprint in China after acquiring China-based fast moving consumer goods (FMCG) company Zhongshan Ma Er Daily Products Ltd.

Wipro Unza, which is part of New York-listed Wipro’s group of companies, said it has signed a definitive agreement to fully acquire the company, the current market leader in the personal hygiene category in Guangdong and Hainan, in cash.

The acquisition would allow Wipro Unza, which has about 15% share of the market in the two provinces, to defend its market position.

Zhongshan Ma Er currently markets not only personal care products under the brands of Enear, Zici and Vcnic, but also fabric care brands, namely Pahnli and Sunew.

"This acquisition is very significant to us as it gives us an [entry] into the lucrative and fast-growing liquid detergent space through the brands that are currently in Zhongshan Ma Er's portfolio," Wipro Unza managing director Kumar Chander told reporters today.

With Wipro Unza’s backing – its subsidiary Wipro Unza (M) Sdn Bhd manufactures personal care brands such as Dashing and Safi – Zhongshan Ma Er should also be able to gain greater traction in the personal care products industry in China.
 
Post-acquisition, Wipro Unza which has recorded RMB82 million (US$11 million or RM45.5 million) in revenue from its China business in 2007, is set to achieve a run rate of RMB1 billion (US$150 million or RM620.5 million).

The acquisition of Zhongshan Ma Er is the second largest undertaken by the group, according to Chander, although he declined to reveal the acquisition cost.

In 2007, India-based Wipro Consumer Care acquired Unza Malaysia for US$246 million (RM1.01 billion). 

Moving forward, Wipro Unza (M) Sdn Bhd chief executive Sriram Krishnamurthy said for Malaysia, the company aims to achieve "higher single-digit" increase in sales for 2017, backed by the introduction of new products.

"We aim to achieve at least 8% to 10% growth, seeing that we will be introducing up to 15 products up till next year," Krishnamurthy said.

For now, apart from growing inorganically via future acquisitions, he added the company will continue focusing on improving its marketing strategies and investing in its existing resources and research and development (R&D).

"In terms of R&D, RM15 million has been invested on our facility in Subang over the last five years," said Krishnamurthy.