23/01/2012 (Mydigitalfc.com) - Wipro Consumer Care and Lighting, a subsidiary of Wipro, is taking its flagship brand Santoor soap to Bangladesh. The move follows the brand’s success in Sri Lanka and Nepal.

Launched as a regular orange soap, Santoor is now available in a number of variants- White, Glycerine, Honey and Apricot. The brand’s success is also seeing a replication in the Santoor glycerine variant in the domestic market.

Speaking to Financial Chronicle, Wipro Consumer Care and Lighting, president, Vineet Agrawal said, “Santoor already sells in other South Asian countries for regional cooperation. So we are evaluating our plan to enter Bangladesh. But the duty in Bangladesh is high.”

On a year-on-year basis during the third quarter, Santoor witnessed a growth of 16 per cent in volume terms. This winter Santoor Glycerine has done very well, he added. Wipro Consumer Care and Lighting recorded a revenue growth of 26 per cent for the December quarter. Its revenue was about 9 per cent of Wipro’s total revenue and 6 per cent of operating income for the quarter ended December 31, 2011. The revenue from this segment was Rs 879 crore for the quarter ended December 31, 2011, representing an increase of 26 per cent year-on-year.

Agrawal said the rupee depreciation had escalated the cost of importing of palm oil from Indonesia and Malaysia. Wipro uses palm oil as a base for its personal care products. Although palm prices globally have dropped by about $230 a tonne to $970, the rupee depreciation has negated the benefits. The currency fluctuation prompted Wipro’s consumer products division to increase the prices of Santoor and Chandrika last year.

Asked about the branded furniture segment, he said, “There is no slow down in market. But there is a slow down in decision making in the commercial sector.” But Agrawal can sense some benefits from the opening of foreign direct investment in the retail sector. He said, “If that happens, we will see our distribution costs coming down. We can also access more sales space. Small shops lack adequate space, which large formal stores can provide.”