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KKR invests US$625 million for majority stake in India’s Vini Cosmetics
Existing investor WestBridge Capital to increase shareholding in company
21 Jun 2021 | The Asset

Global investment firm KKR has agreed to acquire a majority stake in Vini Cosmetics, a branded personal care and beauty products company in India, for about US$625 million. The stake will be sold by Vini’s founder group – led by chairman and joint managing director Darshan Patel and joint managing director  Dipam Patel – and Sequoia Capital.

The co-founders will continue to hold a significant stake in Vini and collaborate with KKR in the next phase of the company’s growth, according to a joint statement. In addition, existing investor WestBridge Capital will acquire a further stake from the founder group to increase its shareholding in Vini.

Founded in 2010, Vini manufactures, markets and distributes its branded deodorants, cosmetics and toiletries through its flagship brand FOGG and other widely recognized brands, such as OSSUM, GlamUp, and several others.

The company has built one of India’s largest personal care products distribution networks with approximately 700,000 points of sale and 3,000 dealers, supported by a sales force of 1,200 people. Vini’s products are also sold internationally through a network of general trade and modern trade channels covering 50 countries, with significant presence in South Asia and the Middle East.

Upon completion of the transaction, Darshan Patel will continue as chairman of the board and Dipam Patel will be appointed as vice chairman.

“Vini has experienced remarkable growth over the last 11 years, but 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,” says Darshan Patel.

“KKR has a proven track record of investing in the growth of some of India’s most innovative and disruptive homegrown champions, as well as in leading consumer and personal care companies globally. We look forward to leveraging their global platform, resources and operational expertise to take Vini to the next level by expanding our e-commerce platform, growing new product categories, and broadening our distribution networks.”

KKR is making its investment from its Asian Fund IV. It says its investment in Vini builds on its long track record of investing in India, where it has committed approximately US$5.7 billion of equity through its private equity strategy since 2006. Over the past 12 months, the firm has made several investments in the country, including in JB Chemicals and Pharmaceuticals, a fast-growing branded pharmaceutical products company; Lenskart, a leading omni-channel eyewear retailer; Five Star, a lender to small businesses; Reliance Jio, a next-generation technology platform that provides affordable digital services; and Reliance Retail, an operator of India’s largest, fast-growing and most profitable retail business.

Shardul Amarchand & Mangaldas acted as legal adviser to the founder group. Steer Advisors was the transaction adviser. KKR was additionally advised by KPMG, EY, AZB & Partners and STB.

The deal is expected to close in July 2021, subject to customary closing conditions.

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