- The deal is worth $1 million (Sh108 million)
- This comes as demand for soap and hygiene products rises due to Covid-19 health protocols
Consumer brands manufacturer Pwani Oil has acquired the Ushindi soap brand further boosting its presence in the fast-growing personal and home care product category.
The deal, approved by the Competition Authority of Kenya (CAK) is worth $1 million (Sh108 million) and involves the purchase of the Ushindi brand only and machines that manufacture the product from PZ Cussons.
This comes as demand for soap and hygiene products rises due to Covid-19 health protocols requiring regular washing and disinfecting to curb the spread of the virus.
According to Pwani Oil commercial director Rajul Malde, there has been a sudden surge in demand for multipurpose soap products that fit into emerging consumers’ spending patterns and desire for a wider choice.
“Our decision to buy Ushindi is informed by our desire to give our customers meaningful choices especially now when they need to keep their families safe by maintaining high hygiene standards,” Malde said.
The Ushindi acquisition will also see the company gain a significant share of the personal and home care product market since it also manufactures the ‘White Wash’ and ‘Ndume’ brands.
Malde adds that while consumption of soap and detergents has increased, disposable incomes are declining due to the negative economic impact of Covid-19, and consumers now want a product they can use for bathing and other home hygiene needs.
“Consumers are increasingly limited by what is in their pocket hence the need to give them a wider range to choose from with products that meet multiple needs,’’ he said.
The Mombasa based firm has also launched a new variant of the Ushindi soap as it seeks to diversify its home care portfolio.
The global soap market is projected to hit $55 billion (Sh5.5 trillion) by 2027, according to the market research firm, Fortune Insights, with growth mainly fueled by the Covid-19 rapid spread across the world.
Demand is expected to be higher for soap products that have natural ingredients like aloe vera as increasingly health-conscious consumers seek products that fit in with their lifestyles.