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KKR Invests $625 Million in India’s Vini Cosmetics

June 28, 2021 BeautyMatter
June 28, 2021
Vini Cosmetics

American private equity firm KKR has invested $625 million for a controlling stake in Gujarat-based Vini Cosmetics, the maker of the Fogg brand of deodorant.

WHO: Founded in 2010, Vini Cosmetics 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 built one of India’s largest personal care products distribution networks with approximately 700,000 points of sale and 3,000 dealers, supported by a sales force of 1,200 people. Vini’s products are also sold internationally through a network of general trade and modern trade channels covering 50 countries, with a significant presence in South Asia and the Middle East.

KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit, and real assets, and has strategic partners that manage hedge funds.

IN THEIR OWN WORDS: "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 Darshan Patel, Chairman and Joint-Managing Director of Vini Cosmetics. “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.”

DETAILS:

  • KKR has invested $625 million for a controlling stake in Gujarat-based Vini Cosmetics.
  • Vini Cosmetics founders father-son duo Darshan Patel and Dipam Patel and existing investor Sequoia Capital have sold a part of their stake in the company.
  • Existing investor WestBridge Capital will acquire a further stake from the Vini Cosmetics’ founders in order to raise its shareholding from 21% to 23%.
  • Darshan Patel will continue as the chairperson of Vini’s board, while Dipam Patel will be appointed as vice chairperson.
  • 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.
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