Private equity firm Carlyle on Tuesday said it has acquired a majority stake in beauty and wellness company VLCC. The equity for the transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners, it said. It did not disclose the financials of the transaction.
VLCC founders Vandana and Mukesh Luthra will continue to hold a significant stake in the company, it said.
The PE major said that the investment underscores its overall conviction in India’s long-term economic and domestic consumption growth, which is characterised by product premiumisation and a shift in preference towards established brands.
Amit Jain, Managing Director and Co-Head, Carlyle India Advisors, said, “We are excited to invest in and support the growth of VLCC, a homegrown and trusted Indian brand with high brand salience. We plan to help VLCC accelerate growth through investments in brand building; product expansion; scaling its pan-India digital and e-commerce distribution channels; and expanding its local footprint of retail clinics. We look forward to working with VLCC’s founders as we seek to strengthen the management team and draw on Carlyle’s deep global consumer experience and network of senior advisors.”
VLCC will be appointing Gurveen Singh and J. Suresh as Independent Directors to the Board. The PE major said that this will help strengthen the Board and will help provide strategic guidance for VLCC’s next phase of growth.
Vandana Luthra, founder of VLCC, said, “We believe VLCC is well-positioned to capture a larger share of the fast-growing skincare, beauty and wellness market in the countries we operate in. Carlyle’s extensive global consumer sector experience, business partnership mindset, local market knowledge and high-caliber team make them the right partner to take the business to the next level.”
Reaffirmation of brand strength
Founded in 1989, VLCC offers branded skincare products and high-end specialized beauty and wellness services. It also offers aesthetic dermal treatments and weight management services across a network of 210 retail clinics in 118 cities and 11 countries in South Asia, the Middle East and Africa.
Mukesh Luthra, Chairman of VLCC, added, “In our view, the investment by one of the world’s largest global investment firms – that has built a stellar reputation for creating long-term value for companies, shareholders, people and communities – is a reaffirmation of the strength of the VLCC brand that we have nurtured, built and grown over the last three decades.”
KPMG India acted as the exclusive transaction advisor to VLCC and the founders.