Carlyle buys India skincare, beauty platform
The Carlyle Group has acquired a majority stake in VLCC, an Indian skincare and beauty platform backed by Everstone Capital, for an undisclosed sum.
It is unclear to what extent, if any, Everstone is participating in the deal, which is said to be worth USD 300m, according to Reuters.
Everstone, which acquired a 15% stake in the business for INR 500m (USD 6.1) in 2007, has sought to gradually exit since at least 2014, when an IPO process was initiated. It reportedly sold off two-thirds of its position ahead of another fizzled IPO in 2021.
Carlyle described the latest transaction as a partnership with the founders, who will continue to hold a significant stake in the company. It plans to support brand building and product expansion, as well as the scaling of a physical retail footprint in lower-tier cities and a pan-India e-commerce business.
The private equity firm will leverage recent consumer and retail experience in India including e-commerce logistics company Delhivery, which raised INR 52.4bn in a domestic IPO last year, and Varmora Granito, which operates tile and bathware stores. The thesis for the latter revolves around a shift toward premiumisation in India’s middle class that will also be explored with VLCC.
Founded in 1989, VLCC is considered a pillar of India’s homegrown skincare, beauty, and wellness space and a market leader in facial kits. The 3,000-strong staff includes medical doctors, nutritionists, physiotherapists, cosmetologists, fitness experts, and wellness counsellors.
The company provides aesthetic dermal treatments and weight management services across 210 locations – referred to as retail clinics – in 118 cities and 11 countries in South Asia, the Middle East, and Africa. There are also 100 upskilling facilities in India, making it one of the largest providers of vocational training in its industry.
The investment coincides with the appointment of Gurveen Singh, formerly of UK consumer goods giant Reckitt Benckiser, and J. Suresh, formerly of Arvind Fashions and Hindustan Unilever, as independent directors.
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