Kolkata, Oct 24 (PTI) Wipro Consumer Care on Thursday said it will operationalise its greenfield personal care manufacturing plant in Hyderabad in 2020, terming the current slowdown in the FMCG sector as a "short term blip".
The company hoped for a revival in demand by fourth quarter of the current fiscal, as good monsoon is expected to give a fillip to the sector, a company official said.
"Hyderabad plant will be our new soap and personal care manufacturing facility in India and will be operationalised in 2020. The slowdown is a short term blip," the company's Chief Executive (Consumer Care-India) Anil Chugh said.
According to him, Andhtra Pradesh and Telegana account for 38 per cent of the company's soap business, which prompted it to set up a manufacturing plant close to the major markets.
Chugh said 50 per cent of its revenue comes from rural markets in India and the company has witnessed "more impact" than others due to the slowdown which is prominent in rural economy.
Following the industry trend, the firm had also reduced prices of its products in the past to retain the market share of its flagship brand, Santoor, which has crossed Rs 2000 crore sales mark, the company claimed.
"We are looking forward to the revival of the rural demand as it is likely to bounce back with the good monsoon. The scenario can be better if it is coupled with the government intervention through higher MSP in wheat and paddy," Chugh explained.
He said the international revenue contributes about 54 per cent to the USD one billion turnover of the company.
In the overseas front, China is the second largest market for the company after Malaysia, he said, adding that the Wipro Consumer Care was investing in the Chinese market for adding one more plant in the neighbouring country.
Chugh said its international business is built with acquisitions of personal care brands and manufacturing facilities in the Asian countries.
The company is also gearing up for strengthening its e-commerce presence, though it currently contributes just 2 per cent to the annual revenue, he said.
"The male grooming product brand, 'Ustraa' and others like 'Happily Unmarried' will be brands led by e-commerce. We have created Rs 200 crore venture capital fund to invest in digital-first startups," Chugh added.
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