Mumbai, June 19: Wipro has signed an exclusive agreement with the owners of Chandrika soap to market the product in select states in the country.
Chandrika, an ayurvedic soap, has a good market in the south. The agreement will help Chandrika reach its target customers using Wipro’s distribution strengths.
The deal comes amid reports that Marico Industries may sue the owners of Chandrika for allegedly failing to honour an MoU signed by them to license and sell the brand to Marico.
The marketing pact has perplexed corporate observers as it was believed that Wipro was at one point of time interested in buying out the brand. However, Wipro officials refused to divulge details on this front, stating that the company as a policy did not comment on speculation.
While Wipro did not comment on the tenure of the arrangement, Vineet Agrawal, president, Wipro Consumer Care & Lighting, said, “This agreement is in line with our strategy of leveraging our strengths to address newer segments. We hope this will lead to a long-term relationship and believe that this would also align with our current strengths in markets like Andhra Pradesh, where our Santoor soap brand is already the leader with a market share of 17 per cent.”
Commenting on the agreement, C. K. Revi, head of the Chandrika family, said, “The marketing agreement with Wipro will significantly enhance Chandrika's reach in key markets. This brand’s strength in the Ayurvedic soaps segment, combined with Wipro's distribution infrastructure, positions it well for significant growth in future.”
Chandrika was a pioneer in the ayurvedic soap segment which has subsequently seen many more brand launches.
Wipro Consumer Care and Lighting, a business Unit of Wipro Ltd, is also present in the branded retail market of toilet soaps, hair care soaps, baby care products and lighting products.
Wipro Consumer Care's brands include Santoor, Wipro Baby Soft and Wipro Shikakai, among others. The company had recently acquired a glucose powder brand, Glucovita, from Hindustan Lever.