MAM
WPP signs landmark lease for Shanghai Campus
MUMBAI: Martin Sorrell led communications services group WPP has signed a landmark agreement with Nan Fung Group and B.M. Group to lease 20 floors and 41,000 sqm at 399 Heng Feng Road, Shanghai, representing one of the largest office leasing deals ever signed within the city’s central business district areas.
The new building will house the WPP Shanghai Campus, one of the most ambitious co-location efforts ever undertaken by WPP. The WPP Shanghai Campus will bring together 26 WPP companies and more than 3,000 people, currently spread across 10 locations.
WPP companies to be relocated include Blue Hive, GroupM, Hill+Knowllton Strategies, Millward Brown, J. Walter Thompson, Ogilvy & Mather, Sudler & Hennessey, and TNS. Move-in is expected to commence at the end of 2015. The office space housing the WPP Shanghai Campus is expected to gain LEED Gold certification.
“China is now WPP’s third largest market, and our commitment to China is deeper than ever. We are proud to support the development of the city of Shanghai and provide our people with the best facilities,” said Sorrell.
In Greater China, WPP companies (including associates) have revenue of $1.5 billion and employ 15,000 people. “One of WPP’s key objectives is horizontality – promoting cooperation across our group companies to improve outcomes for our clients — and bringing our people in Shanghai into this location is an important step towards this goal,” Sorrell added.
399 Heng Feng Road is part of a massive three-stage redevelopment project in the Zhabei District, slated to include a 110,000 sqm shopping mall, six office towers, two luxury boutique hotels, and luxury residential sections and estimated for completion in 2017.
“The Nan Fung Group is delighted that WPP has chosen our project as their campus in East China. Their decision illustrates the increasing attractiveness of the Zhabei District to the international business sector. We regard WPP as a long term partner and we look forward to further working with them throughout the region. We will strive to provide to WPP, as well as other tenants excellent service. Taking this opportunity, on behalf of Nan Fung Group and B.M. Group, our joint venture partner, I would like to thank the officials in the Zhabei District for their strong support in making this project a success,” said Nan Fung group CEO Antony Leung.
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
