TAGS: Skin Care Sun Care
Global investment firm Carlyle announced a strategic partnership with VLCC ( Company), through the acquisition of a majority stake in the Company. Equity for the transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners. Terms of the transaction were not disclosed.
Carlyle believes their combined experience and sector expertise helps strengthen the Board and will help provide strategic guidance for VLCC’s next phase of anticipated growth.
Help VLCC to Accelerate Growth & Product Expansion
The investment underscores Carlyle’s overall conviction in India’s long-term economic and domestic consumption growth, which the team believes is characterized by product premiumization and a shift in preference amongst the rising middle class towards established brands.
Founded in 1989 by Vandana and Mukesh Luthra, VLCC is a homegrown pioneer in India’s skin care, beauty and wellness market, with an integrated offering of branded skincare products and high-end specialized beauty and wellness services.
VLCC has established itself as a well-known brand in India over the last three decades by scaling its range of branded skin care and beauty products across physical retail and digital channels and expanding its network of clinics in tier-one and tier-two Indian cities. The Company is currently one of the market leaders in India for facial kits and has an extensive product portfolio across skin care and sun care products.
VLCC also provides 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. In addition, it operates 100 skill development institutes in India, making it one of the largest providers of vocational training in the beauty and wellness sector in the country.
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.”
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. We are delighted to have found in Carlyle a partner who shares our vision and plans for taking VLCC to its next level of growth. 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.”
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With the Carlyle partnership, we have every confidence in VLCC’s prospects in capturing the market opportunities ahead of us and look forward to continuing to deliver on our mission of transforming lives by making skincare, beauty and wellness accessible to our customers.”
Mukesh Luthra, Chairman of VLCC, said, “
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.”
Carlyle has invested more than USD 5.5 billion of equity in over 40 transactions in India as of September 30, 2022. KPMG India acted as the exclusive transaction advisor to VLCC and the founders.
Source: Carlyle
