New Delhi: Making its second overseas acquisition this year, the home-grown wellness and slimming firm VLCC has bought controlling stake in Singapore-based Global Vantage Innovative Group (GVig), which manufacturers and retails beauty and wellness products.
VLCC did not disclose the deal size, but industry insiders note that the deal is in the Rs 100-Rs 120 crore range. The company had earlier this year acquired Malaysian slimming and personal care firm Wyann International. It said the latest acquisition would help in expanding its presence in the South-East Asian region.
Mukesh Luthra, Chairman, VLCC Group, told Business Line, “We have acquired 80 per cent stake in GVig. The acquisition will give us a foothold in dermatological solutions. It will also help us gain access into GVig’s wellness products, research and development laboratory and manufacturing facilities.”
GVig provides wellness solutions through its subsidiaries BelleWave Cosmetics in the skin and haircare category, Celblos Dermal Research Centre, which offers dermatological solutions, and Enavose Life Science Research, offers a range of Swiss-made skincare and body wellness solutions.
Luthra said the acquisition has been funded through a mix of debt and internal accruals.
Asked on the products positioning in the India’s $5.7 billion beauty and wellness segment, Luthra said the products would be in the masstige (mass+ prestige) category.
He said VLCC had reported a turnover of Rs 1,000 crore in fiscal year ending March 2013. “We hope to touch a turnover of Rs 1,500 crore”.
PE investor Everstone Capital has been an investor in VLCC since 2007. It has 15 per cent stake and their funds were used for scaling up its India wellness services business and VLCC’s personal care business. CLSA had exited VLCC through a management buyout.
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