Pwani Oil acquires Ushindi Soap brand

Kenyans probably know Pwani Oil and Ushindi soaps as household brands. Customers of the two brands will now benefit from the new acquisition of the latter by the former.

It has emerged that Pwani Oil will take over Ushindi brand in a bid to cement its position in the home-care industry. This could also be one step towards diversification as the consumer products manufacturer tries to expand its business in the personal and homecare segment.

The deal has been authorized by the Competition Authority of Kenya, and is expected to take full effect immediately.

This comes after the demand for home-care products increased as a result of COVID-19. Due to the pandemic, consumers are now increasing their use of homecare products such as soap and sanitizers to keep themselves healthy. Pwani Oil has taken advantage of this opportunity to claim a share of increasing demand in the sector.

Pwani Oil Commercial Director Rajul Malde has said that the sudden upsurge in consumer demand for soap has been caused by a shift in consumption patterns and behaviors. He added that the acquisition is customer-centric as it will give the firm’s customers increased choices.

Malde said, “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.”

As consumers face scarcity as a result of the pandemic, they shift to quality homecare products that serve multiple purposes. Ushindi brand offers consumers healthy and value-added products that will meet their changing needs.

This is a smart move by Pwani Oil because it will not only increase its market share, but also increase customer loyalty and satisfaction due to the increased product variety and consumer choice. This will see an increase in the company’s sales and profits in the aftermath of Covid-19.

The deal is estimated to be worth $1 million (Ksh 108 million). Ushindi is a brand of PZ Cussons, and Pwani Oil will buy only the Ushindi soap brand together with its machines. PZ Cussons retains its other brands.

The current valuation of the worldwide soap market is predicted to reach $5.5 trillion by 2027, and Pwani Oil has claimed its share of this value through the lucrative deal.

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