E-Paper
KKR invests ₹4,600 cr for majority stake in Vini Cosmetics
KKR partner Gaurav Trehan said Vini has established itself as one of the fastest-growing personal care companies in India.
KKR & Co Inc, the American global investment company, on Monday announced a $625 million or ₹4,600-crore investment in deodorant maker Vini Cosmetics Private Limited for a controlling stake. According to an official statement, the private equity major has signed a definitive agreement under which Vini’s founder group led by Darshan Patel, its chairperson and joint managing director (JMD), and Dipam Patel, JMD, and Sequoia Capital will sell stakes in the company, which manufactures and markets brands like FOGG. The statement did not specify the exact quantum of stakes to be held by the shareholders in Vini.
The statement said existing investor Westbridge Capital will acquire a further stake from the founder group to increase its shareholding. The co-founders of the 11-year-old Vini Cosmetics will continue to hold a significant stake in the company and will collaborate with KKR in the next phase of its growth, it added.
The statement said Darshan Patel will continue to be the chairperson and Dipam Patel will be appointed as the vice chairperson. The transaction is expected to close in July 2021, subject to customary closing conditions.
"Vini has established itself as one of the fastest-growing personal care companies in India, and the strong consumer brand loyalty for FOGG and its other personal care products is truly impressive," KKR’s partner Gaurav Trehan said.
“… We believe we are in the early stages of what our brands can deliver as consumer demand for high-quality personal care products continues to explode in India, South Asia and other fast-growing markets around the world,” Darshan Patel said.
Vini is looking forward to leveraging the buyout major’s global platform, resources and operational expertise to take the company to the next level by expanding its e-commerce platform, growing new product categories, and broadening our distribution networks, Darshan Patel said.
Shardul Amarchand & Mangaldas acted as legal advisor to the Founder Group. Steer Advisors was the transaction advisor. KKR was also advised by KPMG, EY, AZB & Partners and STB.
Vini's distribution networks include 700,000 points of sale and 3000 dealers, supported by a sales force of 1200 people. The company's products are also sold through a network of general trade and modern trade channels covering 50 countries, with a significant presence in South Asia and the Middle East.
(With PTI inpu)
