Bajaj acquires Vishal to expand Ayurvedic beauty in South India

India-based company Bajaj Consumer Care is acquiring Vishal Personal Care for INR 120 crore (US$1.38 million) to boost Bajaj’s presence in South India and expand its Ayurvedic and natural beauty segments.

The acquisition will be carried out in two phases, starting with a 49% stake followed by the remaining 51%. This gives Bajaj control over the retail network of Vishal’s brand, Banjara’s, which covers five South Indian states. Banjara’s’ product lineup includes facial kits, aloe vera gels, shampoos, herbal powders, and hair care powders.

Bajaj Consumer Care is part of the US$2.5 billion Bajaj Group and is a major player in the personal care industry in India and the broader Eastern beauty markets. The company reported strong financial performance in 2024 with steady revenue growth and profitability and now aims to leverage Banjara’s brand to improve its market position and accelerate product launches.

Expanding reach through distribution networks

The acquisition allows Bajaj to strengthen its reach across South India as it leverages Banjara’s’ retail network of more than 70,000 outlets, including cosmetics stores, supermarkets, pharmacies, and grocery chains.

The company also plans to introduce Banjara’s products in its existing Hindi-speaking markets. By expanding Banjara’s reach to these new markets, Bajaj aims to diversify its revenue streams and depend less on its current geographic limitations.

According to Bajaj’s managing director, Jaideep Nandi, this acquisition is a strategic step that enhances the company’s ability to serve evolving consumer preferences for environmentally-inspired beauty offerings. The company intends to capitalize on the growing demand for Ayurvedic and natural beauty products.

Ayurveda is a holistic Indian healing system emphasizing natural remedies and lifestyle practices. In beauty, this translates to using plant-based, herbal, and mineral ingredients to promote skin and hair health.

Financial performance

Vishal Personal Care reported revenue of INR 51.5 crore (US$592,000) for the 2023-24 financial year, with a compound annual growth rate (CAGR) of 14% over the past four years.

Bajaj’s phased acquisition structure is poised to mitigate financial risks and create a smoother integration process. By initially acquiring 49% of Vishal’s equity, Bajaj can gradually incorporate Vishal’s sales processes and operational practices. This phased approach is believed to allow Bajaj to maximize operational efficiency before completing the acquisition.