Wipro opens region’s largest R&D facility in Malaysia

Wipro opens region’s largest R&D facility in Malaysia
Business & Markets 2013
Written by Zatil Husna Wan Fauzi of theedgemalaysia.com
Monday, 29 July 2013 10:15

KUALA LUMPUR: Wipro Unza Sdn Bhd, a subsidiary of Indian consumer products giant Wipro Enterprises Ltd, has expanded its research and development (R&D) centre here at a cost of RM10 million, making it the group’s largest R&D centre in Southeast Asia.

Wipro Unza managing director Kumar Chander told The Edge Financial Daily that the R&D centre was expanded to cope with the company’s growing market share for personal skincare products in Malaysia.

“The bigger R&D centre will help us enhance our market leadership position in the skincare business in Malaysia, as well as strengthen the group’s position in other Asian markets,” he said, adding that it would further scale up its investment in the R&D centre here over the next three years.

Wipro Enterprises also has R&D centres in India, China, Vietnam, Indonesia and Malaysia.

Kumar said Wipro Unza’s market share in Malaysia for facial skincare products grew by two percentage points over the last three months to 28% as at June this year. He said the growth was mainly attributed to Safi Rania Diamond, a new product line that was launched in May.

Malaysia accounts for 45% of Wipro Enterprises’ total revenue.

“Malaysia is a big market for us, and we continue to grow faster than the market, at 4% to 5% year-on-year,” he said.

Wipro Enterprises acquired Singapore-base Unza Holdings Ltd in 2007. A halal-certified company, Wipro Unza manufactures and markets a wide portfolio of personal care products.

As at June this year, Wipro Unza’s market share in the local “halal toiletries” segment stood at 48%, from about 45% in March this year. It also has a 24% market share in fragrances, talcum (51%), deodorants (13%), facial cleanser (27%), facial skincare (28%), feminine hygiene wash (12%), hand and body lotion (17%), shower (9%) and hair styling (16%).

According to Kumar, the group holds a prominent position in the manufacturing of halal personal care products in Malaysia.

“The new R&D centre will help us deliver better quality halal products,” he said.

Wipro Unza expects to increase its production capacity by 15% within a year, and a further 20% over the next two years.

Although its largest market is currently Malaysia, Kumar said its fastest growing markets are China, Indonesia and Vietnam, adding that the company also has a presence in the Middle East with Enchanteur being the focus brand.

“We will always try to grow ahead of the industry and we have been successful in doing so for the last five years. We are always on the lookout for the current market growth for personal care products and try to double that growth,” he said.



This article first appeared in The Edge Financial Daily, on July 29, 2013.