Carlyle Pays $300M For Majority Ownership In India's VLCC

Author: Anusuya Lahiri | January 10, 2023 08:05am

Global investment firm Carlyle Group Inc (NASDAQ:CG) bagged a majority stake in VLCC. Terms of the transaction were not disclosed.
Founded in 1989 by Vandana and Mukesh Luthra, VLCC is a homegrown pioneer in India's skincare, beauty and wellness market.
Carlyle acquired the stake by paying $300 million, Reuters reports.
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The funds managed and advised by entities affiliated with Carlyle Asia Partners will contribute the equity for the transaction.
The investment underscores Carlyle's overall conviction in India's long-term economic and domestic consumption growth, characterized by product premiumization and a shift in preference amongst the rising middle class towards established brands.
VLCC's online sales - up from 7% of total sales to 22% in the past three years - would help the skincare and beauty products brand gain a distinct value proposition, the report quoted Amit Jain, managing director and co-head of Carlyle India, told.
Founders Vandana Luthra and Mukesh Luthra will continue to hold a significant stake in the company.
VLCC will appoint Gurveen Singh and J. Suresh as independent directors to the Board.
Singh retired as the Chief Human Resources Officer at Reckitt Benckiser Group Plc (OTC:RBGLY).
Suresh, who recently retired as the CEO of Arvind Fashions Limited and started his career with Hindustan Unilever, brings to the team over four decades of experience.
India's beauty and personal care industry will likely grow to $27.5 billion by 2025 from $17.8 billion in 2020, the report cited Avendus' estimates.
Price Action: CG shares closed higher by 4.64% at $32.45 on Monday.
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