KKR will acquire the stake from Vini’s founders, led by Darshan Patel and Dipam Patel, and Sequoia Capital, which acquired a minority stake in the company in 2013.
The investment will be made through Asian Fund IV, KKR’s $15-billion Asia-focused buyout fund, the largest PE fund dedicated to investing in the Asia Pacific region.
According to the announcement, Vini’s co-founders will continue to hold a significant stake in the company while existing investor Westbridge Capital will acquire a further stake to increase its shareholding.
Based in Ahmedabad, Vini Cosmetics manufactures, markets, and distributes its branded deodorants, cosmetics, and toiletries through its flagship brand FOGG and other recognised brands, such as OSSUM, GlamUP, and several others.
The company 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 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,” Guarav Trehan, partner at KKR, said.
Upon completion of the transaction, Darshan Patel will continue as the Chairman of Vini’s Board and Dipam Patel will be appointed as Vice Chairman of the Board, according to the announcement.
Darshan Patel said Vini has experienced remarkable growth over the last 11 years but he believes the company is still in the early stages of what of exploring what it can deliver to consumers in India, South Asia, and other fast-growing markets around the world.
“We look forward to leveraging their (KKR’s) 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,” he added.
KKR has so far committed approximately $5.7 billion of equity in India through its PE strategy since 2006.
Over the past 12 months, the firm has made several investments in the country, including in JB Chemicals and Pharmaceuticals, a branded pharmaceutical products company; Lenskart, an omni-channel eyewear retailer; Five Star, a lender to small businesses; Reliance Jio, a technology platform; and Reliance Retail, an operator of India’s largest, fast-growing and most profitable retail business.