MUMBAI: At a time when the FMCG sector was reeling under a slowdown in rural markets, Wipro Consumer Care & Lighting (WCCL) took a call to expand its reach in rural areas and smaller towns. The decision has now paid off with its flagship soap brand Santoor strengthening its grip in states where it has a relatively big presence.
In the last one year, WCCL added 3,000 villages and 700 distributors to better service retail outlets. In an interview with TOI, WCCL CEO Vineet Agrawal said: “When rural markets had slowed, we re-doubled our efforts to go deeper into these areas. This is one of the reasons why we have added to our growth. Consumers too reward you when you service them better.”
In the September quarter, WCCL’s India FMCG business grew 19.5%, with Santoor crossing Rs 663 crore, riding on a growth of about 18%. Santoor is the second-largest soap brand in the country, with a strong presence in Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Telangana. WCCL said Santoor is the leader in Telangana.
The company said Santoor soap’s value market share grew to 9.6% July–September 2022 over 9.3% in the year-ago period. Its premium brand, Yardley, which is a stronger brand in Kerala, too grew at over 19% in India in the second quarter.
Irrespective of the inflation, Agrawal said consumers are still looking for value. “They are fine with paying extra for a good product. What we, however, see is a movement of downtrading from large packs to small packs among a large section of consumers of mass products. But it is also offset by the fact that people are willing to pay higher money for a better value,” he said.
Santoor, Agrawal said, could have gained from weaker brands as consumers continue to stick to brands with strong USP. After taking a 6% reduction in soap prices, Agrawal does not expect further price increases in products.
WCCL, which is now getting into traditional snacks, will leverage its existing distribution for the same. “Taste palate changes every 200km in India. We will use our distribution to offer customised products to suit the taste palate of consumers,” said Agrawal. WCCL wants to exploit the gap in the southern traditional snacks market where there’s no large, branded player. “What Haldiram’s did for the North and West, we want to do for South,” he said.
Globally, WCCL’s business crossed Rs 2,534 crore with a growth of about 21% and a profit increase of 13%.
In the last one year, WCCL added 3,000 villages and 700 distributors to better service retail outlets. In an interview with TOI, WCCL CEO Vineet Agrawal said: “When rural markets had slowed, we re-doubled our efforts to go deeper into these areas. This is one of the reasons why we have added to our growth. Consumers too reward you when you service them better.”
In the September quarter, WCCL’s India FMCG business grew 19.5%, with Santoor crossing Rs 663 crore, riding on a growth of about 18%. Santoor is the second-largest soap brand in the country, with a strong presence in Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Telangana. WCCL said Santoor is the leader in Telangana.
The company said Santoor soap’s value market share grew to 9.6% July–September 2022 over 9.3% in the year-ago period. Its premium brand, Yardley, which is a stronger brand in Kerala, too grew at over 19% in India in the second quarter.
Irrespective of the inflation, Agrawal said consumers are still looking for value. “They are fine with paying extra for a good product. What we, however, see is a movement of downtrading from large packs to small packs among a large section of consumers of mass products. But it is also offset by the fact that people are willing to pay higher money for a better value,” he said.
Santoor, Agrawal said, could have gained from weaker brands as consumers continue to stick to brands with strong USP. After taking a 6% reduction in soap prices, Agrawal does not expect further price increases in products.
WCCL, which is now getting into traditional snacks, will leverage its existing distribution for the same. “Taste palate changes every 200km in India. We will use our distribution to offer customised products to suit the taste palate of consumers,” said Agrawal. WCCL wants to exploit the gap in the southern traditional snacks market where there’s no large, branded player. “What Haldiram’s did for the North and West, we want to do for South,” he said.
Globally, WCCL’s business crossed Rs 2,534 crore with a growth of about 21% and a profit increase of 13%.
