Private-equity firm Carlyle Group (CG.O) has acquired a majority stake in Indian beauty care and wellness solutions provider VLCC for around $300 million, two sources told Reuters on Tuesday.
The equity for the transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners, Carlyle said in a statement, without specifying a deal value.
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, Amit Jain, managing director and co-head of Carlyle India, told Reuters on Tuesday.
"In a crowded market, having a distinct value proposition with high product efficacy and an established brand is very valuable, and that's what VLCC has," Jain added.
Founded in 1989, VLCC has a network of 210 retail "clinics" in 118 cities across 11 countries in South Asia, the Middle East and Africa.
Founders Vandana Luthra and Mukesh Luthra will continue to hold a significant stake in the company, Carlyle said, without sharing further details.
India's beauty and personal care industry is expected to grow to $27.5 billion by 2025 from $17.8 billion in 2020, according to estimates by Indian financial services firm Avendus.
In December, the parent of Indian personal care products startup Mamaearth filedfor an initial public offering.
