Deal marks a strategic partnership with VLCC’s founders who will continue to hold a significant stake in the company
Mumbai, India, January 10, 2023 – Global investment firm Carlyle (NASDAQ: CG) today announced a strategic partnership with VLCC (the “Company”), through the acquisition of a majority stake in the Company. Equity for the transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners. 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, with an integrated offering of branded skincare products and high-end specialized beauty and wellness services. VLCC has established itself as a well-known brand in India over the last three decades by scaling its range of branded skincare and beauty products across physical retail and digital channels, and expanding its network of clinics in tier-one and tier-two Indian cities. The Company is currently a market leader in India for facial kits and has an extensive product portfolio across skincare and sun care products.
VLCC also provides aesthetic dermal treatments and weight management services across a network of 210 retail clinics in 118 cities and 11 countries in South Asia, the Middle East and Africa. In addition, it operates 100 skill development institutes in India, making it one of the largest providers of vocational training in the beauty and wellness sector in the country.
The investment underscores Carlyle’s overall conviction in India’s long-term economic and domestic consumption growth, which the team believes is characterized by product premiumization and a shift in preference amongst the rising middle-class towards established brands.
Amit Jain, Managing Director and Co-Head, Carlyle India Advisors, said: “We are excited to invest in and support the growth of VLCC, a homegrown and trusted Indian brand with high brand salience. We plan to help VLCC accelerate growth through investments in brand building; product expansion; scaling its pan-India digital and e-commerce distribution channels; and expanding its local footprint of retail clinics. We look forward to working with VLCC’s founders as we seek to strengthen the management team and draw on Carlyle’s deep global consumer experience and network of senior advisors.”
Vandana Luthra, Founder of VLCC, said: “We believe VLCC is well-positioned to capture a larger share of the fast-growing skincare, beauty and wellness market in the countries we operate in. We are delighted to have found in Carlyle a partner who shares our vision and plans for taking VLCC to its next level of growth. Carlyle’s extensive global consumer sector experience, business partnership mindset, local market knowledge and high-caliber team make them the right partner to take the business to the next level. With the Carlyle partnership, we have every confidence in VLCC’s prospects in capturing the market opportunities ahead of us and look forward to continuing to deliver on our mission of transforming lives by making skincare, beauty and wellness accessible to our customers.”
Mukesh Luthra, Chairman of VLCC, said: “In our view, the investment by one of the world’s largest global investment firms – that has built a stellar reputation for creating long-term value for companies, shareholders, people and communities – is a reaffirmation of the strength of the VLCC brand that we have nurtured, built and grown over the last three decades.”
VLCC will be appointing Gurveen Singh and J. Suresh as Independent Directors to the Board. Ms. Singh retired as the Chief Human Resources Officer at Reckitt Benckiser and brings with her over 40 years of experience in talent development and HR solutions. Mr. Suresh, who recently retired as the Managing Director and CEO of Arvind Fashions Limited and had started his career with Hindustan Unilever, brings to the team over four decades of experience in the consumer and retail sector. Carlyle believes their combined experience and sector expertise helps strengthen the Board and will help provide strategic guidance for VLCC’s next phase of anticipated growth.
Carlyle’s global private equity funds have well-established experience investing in the consumer and retail sectors, as well as consumer-oriented businesses, including investments in Varmora, Grand Foods China (McDonald’s China franchisee), Golden Goose, A Twosome Place, TOKIWA Corporation, SBI Card, and Delhivery, among others. Globally, Carlyle has invested approximately US$25 billion of equity in over 135 deals in the consumer, media and retail sector, as of September 30, 2022.
Carlyle has invested more than US$5.5 billion of equity in over 40 transactions in India as of September 30, 2022.
KPMG India acted as the exclusive transaction advisor to VLCC and the founders.
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit, and Global Investment Solutions. With $369 billion of assets under management as of September 30, 2022, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs over 2,100 people in 29 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.
Founded by Mrs. Vandana Luthra and Mr. Mukesh Luthra as a beauty and weight management services center in 1989, the VLCC group was incorporated in 1996 and is among the first multi-outlet corporate operations in the Skincare, Beauty & Wellness Industry in India. Since inception, the VLCC Group’s mission has been to transform lives by making Skincare, Beauty and Wellness accessible to women and men. In over 30 years of operation, the VLCC brand has become synonymous with Skincare and Beauty in Indian households. Today, VLCC believes it enjoys a high level of consumer trust and is widely recognized for its comprehensive portfolio of services and products. The VLCC Group’s operations currently span 310 locations in 139 cities and 11 countries, including India, Sri Lanka, Bangladesh, Nepal, Singapore, Thailand, the UAE, Oman, Bahrain, Qatar, Kuwait, and Kenya, with a staff strength of over 3,000 skilled professionals, including medical doctors, nutritionists, physiotherapists, cosmetologists, fitness experts and wellness counsellors.