Private equity group Carlyle, has set their eyes on buying a three-decade old homegrown wellness, beauty products and personal care company VLCC Healthcare Ltd. It is going to be a big play in D2C Market.
The Offer
The buyout is speculated to be 60-70% controlling stake for about Rs 2,000-2,500 crore ($250-300 million) through a primary infusion as well the secondary purchase of shares from the founding Luthra family. An announcement is yet to be expected very soon.
About The Brand
VLCC Healthcare Ltd. has shown tremendous growth over the past few years by stepping up its game in the beauty & personal care branded business. Some of their best-selling products include a huge variety of serums, vitamin C creams, face packs, sunscreens, body butters & shampoos ahead of the wellness and beauty service centres. Even VLCC’s ecom channels have doubled to 35-40% in the last three financial years. Their products are sold through Amazon, Nykaa, Flipkart & outlets such as Apollo Pharmacy or Wellness Forever, as well as its own website.
According to regulatory filings, VLCC Health Care reported total revenue of Rs 565 crore for FY21, with a net profit of Rs 6.2 crore as opposed to a loss of Rs 15.3 crore the year before. According to persons with knowledge of the situation, the company is projected to generate close to Rs 1,000 crore in revenue and Rs 225 crore in ebitda for FY23.
Even India’s beauty and personal care market is estimated at $24.53 billion and forecast to touch $33.33 billion by 2027, growing at a CAGR of 6.32%, research company ResearchAndMarkets.com said in a report.