KKR Takes Controlling Stake in India’s Vini Cosmetics
PARIS — KKR is taking a controlling stake in Vini Cosmetics by investing 46 billion rupees, or $625 million, in the Indian personal care and beauty company.
The company’s founder group, led by Darshan Patel, Vini’s chairman and joint managing director, and Dipam Patel, the company’s joint managing director, and Sequoia Capital will sell a majority stake to global investment firm KKR.
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The cofounders will continue to hold a large minority stake in Vini and work with KKR on the next phase of the group’s growth.
Another existing investor, WestBridge Capital, is to acquire a larger stake from the founder group, to increase its minority shareholding, according to KKR in a press release. No specific sizes of the various shares were revealed.
Darshan Patel will remain chairman of Vini’s board and Dipam Patel is to be appointed vice chairman of the board.
Vini was founded in 2010 and manufactures, markets and distributes branded deodorants, cosmetics and toiletries under its flagship brand FOGG, as well as OSSUM and GlamUp, among other labels.
With approximately 700,000 sales points, 3,000 dealers and a sales staff of 1,200, it boasts one of India’s biggest personal care distribution networks. Vini also trades abroad, in 50 countries, with a focus in South Asia and the Middle East.
“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,” Darshan Patel said in the statement.
“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,” he added.
“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.
“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,” he added. “Our investment in Vini also underscores KKR’s long-term commitment to support India’s innovative and dynamic companies as they become leaders in their industries.”
KKR’s investment is being made through its Asian Fund IV. KKR has invested about $5.7 billion in India since 2006. Over the past 12 months, that includes investments in omnichannel eyewear retailer Lenskart, retailer Reliance Retail, small business lender Five Star and pharmaceutical products company JB Chemicals.
The Vini transaction is expected to close in July.
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