ANALYSIS: Can an Indian consumer goods company take Filipino brands regional?

Wipro’s acquisition of S Brands expands its Philippine personal care portfolio and could give homegrown brands a path into markets across Asia and beyond.

Indian consumer goods company Wipro recently acquired Filipino company S Brands Consumer Care Inc., giving it a broader position in the Philippine personal care market and a portfolio of local brands that could eventually find their way into other countries. But Wipro’s ambitions extend beyond adding six local brands to its portfolio.

The acquisition brings S Brands’ KERATINplus, AlcoPlus, DeoPlus, Empress, Grips and Fiona Cologne into Wipro Consumer Care International’s Philippine business, alongside Splash Corp. ‘s SkinWhite, Maxi-Peel and Vitress.

Wipro now has a broader range of products across hair care, hygiene, fragrance and men’s grooming. More importantly, it has a group of Philippine brands that it can potentially take into markets where it already operates.

“We will also take those brands and the propositions to other countries and test it amongst the consumers there,” Wipro Consumer Care International President East Asia and COO Nagender Arya said.

The company plans to assess the products market by market, relying on its local teams to determine which brands fit consumers in different countries. Arya said the process could take six months to a year, depending on the market.

KERATINplus appears to be the leading candidate. Arya cited the hair-treatment brand’s position in the Philippines and pointed to opportunities in Southeast Asia and potentially the Middle East.

Wipro has the international network to make that possible. Its consumer care business operates in more than 60 countries and has grown partly through acquisitions, with S Brands becoming its 16th. The company said it has spent nearly $1.1 billion on consumer businesses through those acquisitions over more than two decades.

The Philippine market also gives Wipro an established base. Its 2019 acquisition of Splash brought SkinWhite, Maxi-Peel and Vitress into the group, giving Wipro experience in the local market and an existing business infrastructure.

S Brands adds categories that complement rather than duplicate much of that portfolio. Wipro has a strong presence in skin care and hair styling through Splash, while S Brands brings stronger positions in hair treatment, hygiene, fragrance and men’s grooming.

What Wipro brings to S Brands goes beyond distribution. The company plans to give the Philippine team access to its global R&D capabilities and product-development expertise, while drawing on S Brands’ understanding of Filipino consumers.

“It’s not just about products, but also about the way we do business. The way we are able to build brands,” said Amit Kumar Dawn, who is taking over as S Brands’ chief executive.

Wipro also does not plan to radically alter S Brands’ operations. Its products will continue to be manufactured in the Philippines, while existing toll manufacturers and distributors are expected to remain in place. Founder Dick Sy Ong will stay on as an adviser.

That could be important to the regional expansion plan. The qualities that made S Brands attractive to Wipro are tied to its local business, from consumer knowledge to distribution and pricing.

The challenge is to add Wipro’s global scale without losing those strengths.

“We want the team that has worked in the Philippines to get international exposure,” Arya said.

If Wipro can make that combination work, S Brands could give Philippine-developed consumer brands a route into markets well beyond the country where they were built.

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