Carlyle acquires VLCC to boost Indian skincare and beauty platform

10 Jan 2023 --- Global investment firm Carlyle has forged a strategic partnership with VLCC by acquiring the company, which specializes in branded skincare and beauty and wellness services in India. Financial details of the transaction have not been disclosed.

Thus far, Carlyle has invested upwards of US$5.5 billion in equity via over 40 transactions in India. Globally, Carlyle has invested approximately US$25 billion of equity in over 135 deals in the consumer, media and retail sectors.

“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,” says Amit Jain, managing director and co-head at Carlyle India Advisors.

VLCC has scaled its products across physical retail and digital channels over three decades and is expanding its network of clinics in tier-one and tier-two Indian cities. The company is a market leader for facial kits with an extensive portfolio of skincare and suncare products.

In other regional developments, augmented reality and artificial intelligence beauty tech solutions provider Perfect Corp. is teaming up with India-based Good Glamm Group to launch virtual try-on and AI skin analysis experiences to revolutionize the shopping experience for its customers across the subcontinent.

Skill development gamechanger
VLCC provides aesthetic dermal treatments and weight management services for 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 region’s largest providers of vocational training in the beauty and wellness sector.VLCC has a significant portfolio of facial kits with an extensive portfolio of skincare and suncare products.

“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,” says Vandana Luthra, founder of VLCC.

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,” Luthra elaborates.

The investment underscores Carlyle’s strategy to improve economic and domestic consumption growth through product premiumization.

Equity for the transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners. KPMG India acted as the exclusive transaction advisor to VLCC and the founders.

Carlyle’s global private equity funds previously invested in Varmora, Grand Foods China (McDonald’s China franchise), Golden Goose, A Twosome Place, TOKIWA Corporation, SBI Card and Delhivery, among others.

Edited by Inga de Jong

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