DURBAN - A homegrown brand that South Africans have learnt to love was recently bought by an Indian multinational corporation.
Oh So Heavenly, synonymous with Clicks, is now owned by Wipro Consumer Care and Lighting (WCCL) from Bangalore, India.
Last Tuesday, WCCL signed a definitive agreement to acquire Canway Corp which managed Oh So Heavenly. The transaction value could not be disclosed due to confidentiality agreements.
The deal is expected to be completed in January.
Last year, Canway Corp posted revenues of about R308 million.
WCCL, the R14 billion-plus arm of Wipro Enterprises, spent more than R13bn in acquisitions over 16 years.
Canway Corp was its12th acquisition and the second this year.
In April, WCCL acquired Splash Corp, the Philippines’ largest personal care company.
Nagender Arya, WCCL president of East Asia, Europe and Africa, said the acquisition had been in the works since last year.
“Our company is strong in India, East Asia, South East Asia and the Middle-East but our presence in the African market was not well developed,” said Arya.
“We looked at African countries to see where we could make a big entry and chose South Africa. We wanted a homegrown brand and Oh So Heavenly caught our eye.”
He said while it was exclusive to Clicks for eight out of nine years, it was named the most loved brand by the retailer’s shoppers.
“It had an attractive portfolio. We met with the former owners and the team, which was an enriching experience.
“Their values, work ethic and culture were similar to Wipro’s. The portfolio showed optimistic business growth.”
He said the Oh So Heavenly brand enjoyed a market-leading position in multiple categories such as bath and shower, hand creams, fragranced body sprays, and children’s products.
“It is a leader in the gifting segment that constitutes a large portion of the South African personal care market.”
Arya said when he visited Clicks, the brand dominated shelf space and looked appealing.
“The packaging was eye-catching and creative. The branding was just terrific and the fragrances were top-notch. We also performed market research and spoke to consumer groups, which called the brand trustworthy, reliable and consistent.”
Arya said that while this was its first acquisition in South Africa it would not be the last.
“For now we need to integrate and grow this new brand with our extensive resources. It has performed well in South Africa but we can add further value by making it an international product. We have larger research and development teams and manufacturing power. The brand will grow with us.”
Arya, 51, was born and schooled in Delhi but he completed an MBA in Mumbai.
He joined Wipro straight out of college in 1991 at the age of 23 as a management trainee and has been with the company since.
“Wipro is a great place to work. There are strong values and a great culture with high levels of passion and professionalism. Our people are cared for and opportunities to grow are always available.
“If a position becomes available and someone within the company applies, we will give them preference. It is policy to nurture our own and help them grow rather than take on an outsider.”
He said he was fortunate to have benefited from the policy
“It allowed me to grow and without it, I would not be president or the man I am today. I am grateful I was trusted with the role to grow the company internationally and go from strength to strength.”
Arya added that all the Canway Corp staff would now become one with WCCL and have access to the same opportunities.
For the past decade Arya, his wife, and 16-year-old daughter have been based in Hong Kong.
“With me being based in China, we will have a local team member stay here in South Africa and run the business. But when help is needed, I would come to South Africa or we will send out a team to lend assistance.
“But in this era of technology, there are so many ways to communicate with the team. However, we have faith in the team. They have already brought the business this far.”
Arya said that over the past year, in finalising the acquisition, he had been back and forth between Cape Town, Johannesburg and Durban.
“I have been in South Africa for a lot of work and the people are warm and welcoming. They are some of the best people I have met.
“Durban is such a people place with the beaches, all this nature and the food is delicious. I recently tasted a bunny chow and it was incredible. I thoroughly enjoyed it."
Arya said his family never accompanied him on business trips but he would like to bring them on holiday.