KKR takes majority stake in Vini Cosmetics

To invest ~4,600 crore in Fogg deo maker; Westbridge to raise holding

Global investment giant KKR has bought a majority stake in personal care company Vini Cosmetics, the maker of

Fogg deodorants, from its founders and venture capital firm Sequoia Capital for

$625 million (about ~4,600 crore). This is the largest private equity (PE) control deal in the space in the country.

The founder group, led by Chairman and Joint Managing Director Darshan Patel and Joint MD Dipam Patel, will continue to hold a significant stake in Vini and work with KKR in the next phase of the company’s growth, KKR said in a statement on Monday. In addition, existing investor Westbridge Capital will increase its holding in Vini from 21 per cent to 23 per cent, said sources in the know.

The previous largest deal in this space was when Sequoia Capital India and Westbridge had led a $168 million (about ~1,000 crore then) investment in Vini in September 2017.

Founded in 2010, Vini makes and markets its branded deodorants, cosmetics and toiletries through its flagship brand Fogg and other widely recognised brands such as Ossum and Glamup.

Market watchers said KKR would build a portfolio of beauty and personal care firms and then go for an initial public offering (IPO). However, KKR did not comment on the matter.

“KKR’S control deal in Vini Cosmetics, other than being the largest deal in this space, also reflects the potential of this space. Beauty and personal care is expected to see a lot of deal activity, growth capital and consolidation,” said Sanjay Bansal, managing partner, Aurum Equity Partners.

Darshan Patel will continue as the chairman of Vini’s board, while Dipam Patel will be appointed as vice chairman.

KKR is making the investment from its Asian Fund IV, which has a corpus of $15 billion. The firm has committed about $5.7 billion of equity through its private equity strategy since 2006.

Over the past 12 months, it has made many investments in India, including in JB Chemicals and Pharmaceuticals; Lenskart, an omnichannel eyewear retailer; Five Star, a lender to small businesses; Jio; and Reliance Retail. Gaurav Trehan, partner at KKR, said, “Our investment in Vini underscores KKR’S long-term commitment to support India’s innovative and dynamic firms as they become leaders in industries.”