PE firms compete for Everstone’s stake in VLCC – report

According to The Times of India, Everstone is willing to offload its holding provided the valuation is acceptable, and L Capital - the independent private equity arm of luxury goods giant LVMH - and KKR are among those interested in buying. Indian GP ChrysCapital is also in contention.

The stake is said to be worth INR4 billion ($74.3 million), valuing the company as a whole at INR250 billion. VLCC is projected to deliver revenues of INR7 billion and a profit of around INR1 billion for the current financial year. VLCC is likely to pursue an IPO within two years. It was reported in July of last year that the company had postponed plans to list in favor of another round of private equity funding, with J.M. Financial appointed to advise on the project.

According to AVCJ Research, Everstone invested INR500 million in VLCC in 2007 via its debut fund, Indivision India Partners, which was subsequently renamed Everstone Capital Partners I. CLSA Capital Partners committed $10 million in venture funding to VLCC three years earlier. The company bought back the 13.65% holding in 2011.

VLCC started life in 1989 as a single outlet in south Delhi, set up by Vandana Luthra. The company has since has expanded to more than 300 locations across 109 cities in India, the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait, Sri Lanka, Bangladesh and Nepal. It has ambitions to take its weight management, beauty treatment, skin care and spa products into Singapore, Egypt and the UK. The Luthra family remains the majority shareholder.

India's beauty and wellness industry is estimated to be worth INR490 billion, with services accounting for about 40%. The industry is growing at about 20-25% per year.

Last year, Everstone acquired a significant stake in R&R Salons, operator of the YLG salon chain across India. The private equity firm was said to have committed an initial INR600 million, with the option of increasing its investment to INR1.09 billion. Helion Venture Partners provided early-stage funding to R&R in 2009.

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• Topics
• Consumer
• Exits
• Expansion
• Secondaries
• South Asia
• Consumer
• India
• Exit
• Secondaries
• Growth capital
• Everstone Capital