Wipro: Earning the right to grow
The criteria for identifying new categories were clear: each business should be able to scale up to Rs 300 crore-Rs 500 crore in a few years.
By Mitu Jayashankar, TNN |
Much of the credit for Wipro Consumer Care’s turnaround lies with Agrawal, who took over the business five years ago. Agrawal, who has spent 22 years at Wipro, came in with a single-minded goal: to put the consumer care business on a firm growth trajectory. The first thing he did upon joining was to appoint a dedicated manager for M&A. The intent was clear: Wipro would not be constrained in its ambition by organic growth. “Size has an impact on employees, it has an impact on the way you do business,” says Agrawal.
| Much of the credit for Wipro Consumer Care’s turnaround lies with Agrawal, who took over the business five years ago. Agrawal, who has spent 22 years at Wipro, came in with a single-minded goal: to put the consumer care business on a firm growth trajectory |
Then he identified products within the existing portfolio, like Santoor and CFL, which could be grown the fastest. He pushed for diversification and added several new businesses like office furniture and switches in the lighting business, and new categories like glucose powders, isabgol and sweeteners. In three years, the new categories in lighting alone yielded Rs 100 crore in additional revenue. Wipro Consumer Care acquired three new businesses, Chandrika Soaps (Rs 31 crore), Glucovita (Rs 5 crore) and Northwest Switches (Rs 102 crore) in three years.
The criteria for identifying new categories were clear: each business should be able to scale up to Rs 300 crore-Rs 500 crore in a few years, have low penetration, and not be saturated with competition. So toothpaste was out since it grew only at 3%, as were detergents, where Wipro could have ended up with a bloody nose. Thanks to some revamped advertising, better distribution and smart product extensions, Santoor is now the third largest toilet soap brand in India with sales of Rs 400 crore.
The company chose a big star like Saif Ali Khan to endorse Santoor. “It was important to send the message to the external world that we had grown big,” says Agrawal.
(With inputs from Ravi Ananthanarayanan)
The criteria for identifying new categories were clear: each business should be able to scale up to Rs 300 crore-Rs 500 crore in a few years, have low penetration, and not be saturated with competition. So toothpaste was out since it grew only at 3%, as were detergents, where Wipro could have ended up with a bloody nose. Thanks to some revamped advertising, better distribution and smart product extensions, Santoor is now the third largest toilet soap brand in India with sales of Rs 400 crore.
The company chose a big star like Saif Ali Khan to endorse Santoor. “It was important to send the message to the external world that we had grown big,” says Agrawal.
(With inputs from Ravi Ananthanarayanan)
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