KKR buys controlling stake in India's Vini Cosmetics

The sellers are Vini’s founder group – led by Darshan Patel, the chairman and managing director, and Dipam Patel, also a managing director – and Sequoia Capital India. Darshan Patel will continue as board chairman with Dipam Patel becoming vice-chairman.

Sequoia bought a minority interest in the company for INR1.1 billion ($17.8 million) in 2013 and then re-upped in 2017, contributing approximately INR2 billion to an INR11 billion round led by WestBridge Capital in 2017, AVCJ Research’s records show. The latest transaction will see WestBridge increase its holding in Vini by acquiring shares from the founders.

Abhay Pandey, co-founder of A91 Partners and formerly a managing director at Sequoia, tweeted that the founders owned 62% of Vini and are selling majority control at a $1.2 billion valuation. He was a board member at Vini until 2018. The Economic Times reported that KKR would pick up about 54%, of which approximately 35% would come from the founders.

Founded in 2010, Vini produces branded deodorants, cosmetics, and toiletries through its flagship brand Fogg, as well as other brands such as Ossum and GlamUp. It has established 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 also sells its products internationally with a network of general trade and modern trade channels extending into 50 countries. It claims a significant presence in South Asia and the Middle East.

The Patel family previously established domestic personal care products giant Paras Pharmaceuticals, and Darshan Patel ran the business alongside his two brothers, Girish and Devendra. They sold a majority interest to Actis in 2006 and completed their exit four years later when Reckitt Benckiser bought the business for $726 million.

“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,” said Gaurav Trehan, a partner at KKR, in a statement. “Darshan and Dipam are industry pioneers, and we are excited to work with them and their team to capture new growth opportunities stemming from a young, emerging middle-class that increasingly seeks upgraded products.”

Other recent private equity activity in the personal care and beauty space includes Sequoia leading a $45 million Series D for Purplle, an e-commerce marketplace that has started developing its own private-label brands. TPG-backed Nykaa has similar ambitions and is currently preparing for an IPO.

KKR will invest in Vini via its fourth pan-Asian fund, which closed earlier this year with commitments of $15 billion. Shardul Amarchand & Mangaldas acted as legal advisor to the founders, with Steer Advisors serving as transaction advisor. KKR also worked with KPMG, EY, AZB & Partners and Simpson Thacher.

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• Topics
• South Asia
• Buyouts
• Consumer
• Trade sale
• India
• KKR
• Sequoia Capital
• WestBridge Capital Partners