KKR pays Rs 4,600 cr for majority stake in FOGG brand owner Vini Cosmetics

KKR will pay $625 million (Rs 4,600 crore) to buy a majority stake in Vini Cosmetics from the personal care company’s founder group and PE firm Sequoia Capital, said the global investor Monday.

Vini’s co-founder group–led by Darshan Patel, chairman and joint-managing director, and Dipam Patel, joint managing director–will continue to hold a significant stake and collaborate with KKR, said the investor. WestBridge Capital, an existing investor, will acquire a further stake from the founder group to increase its shareholding in Vini.

Vini, which was founded in 2010, makes branded deodorants, cosmetics and toiletries through its flagship brand FOGG. It owns other brands, such as OSSUM and GlamUp and has a distribution networks with approximately 700,000 points of sale and 3,000 dealers, supported by a sales team of 1,200 people.

Darshan Patel will continue as chairman of Vini’s board and Dipam Patel will be made vice chairman.

“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.

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.”

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.

KKR has committed about $5.7 billion of investment for India, through its private equity strategy starting 2006. The firm, in 12 months, has made investments in JB Chemicals and Pharmaceuticals, Lenskart, an eyewear retailer; Five Star, a lender to small businesses; Reliance Jio, a technology platform that provides affordable digital services; and Reliance Retail, which operates India’s largest retail business.

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