KKR, a global investment firm, and Vini Cosmetics, a branded personal care and beauty products company in India, have signed a definitive agreement pursuant to which the company’s founder group – led by Darshan Patel, chairman and joint-managing director, and Dipam Patel, joint-managing director – and Sequoia Capital will sell a majority stake in the company to KKR for approximately $625 million. The co-founders will continue to hold a significant stake in Vini and collaborate with KKR in the next phase of the company’s growth. In addition, existing investor WestBridge Capital will acquire a further stake from the founder group to increase its shareholding in Vini.
Vini manufactures, markets and distributes its branded deodorants, cosmetics and toiletries through its flagship brand Fogg and other widely recognized brands, such as Ossum, GlamUp, and several others.
“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,” said Patel. “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.”
Gaurav Trehan, partner at KKR, said, “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. 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. 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 is making its investment from its Asian Fund IV. Over the past 12 months, the firm has made several investments in India, including in JB Chemicals and Pharmaceuticals, a branded pharmaceutical products company; Lenskart, a leading omni-channel eyewear retailer; Five Star, a lender to small businesses; Reliance Jio, a next-generation technology platform that provides affordable digital services; and Reliance Retail, an operator of India’s largest, fast-growing and most profitable retail business.
Shardul Amarchand & Mangaldas acted as legal advisor to the Founder Group. Steer Advisors was the transaction advisor. KKR was additionally advised by KPMG, EY, AZB & Partners and STB.