WCCL to set up deodorant plant

Indian IT firm Wipro’s consumer goods arm Wipro Consumer Care and Lighting (WCCL) said that it would set up its own deodorant plant in the current fiscal with a view to increase margins.

WCCL, which outsources manufacturing of deodorants, said that the firm is still evaluating and hoping to set up a deodorant plant this year, reported economictimes.com.

The company had reported a 25.16% revenue rise to INR9.067bn ($172.39m) for the Q4 of 2011-12 when compared to the INR7.244bn ($137.73m) in the same period of the last year.

The report stated that the firm recorded operating margin of 12.5% in the period of January to March.

While the toilet soap category in India is valued at nearly INR100bn ($1.89bn), the market for deodorants has grown to INR15bn ($285m), the report stated.

The firm said that its Yardley brand has also extended into deodorants with pricing about 7-8% above mass market.

WCCL also plans to expand soaps line for Santoor, CLF and also in its plants in China and Vietnam.

The company posted a 22.5% increase in revenue at INR 33.4bn ($634.1m) for the year ended March 2012.

WCCL caters to consumer categories of lighting products and personal care products including toilet soaps, hair care soaps and baby care products, among others.

The firm in 2009 had acquired Yardley’s business in Asia Pacific, Middle East and African markets for $45.5m from UK-based Lornamead Group, following its acquisition of Unza in 2007.