NEW DELHI — Indian beauty firm VLCC Group has acquired Singapore-based Global Vantage Innovative Group for an undisclosed sum.
VLCC is a large player in the beauty and wellness market in India, with a line of skin-care products that has more than 200 stockkeeping units and retails in 75,000 outlets. The company had sales of $114 million in the year ended March 31 and has been growing fast in the personal care segment. Analysts estimated the Global Vantage deal was worth about $25 million and financed by debt and internal accruals.
Global Vantage manufactures and retails through three subsidiaries: BelleWave Cosmetics, Enavose Life Science Research and Celblos Dermal Research Centre. Through these, it has strength in skin and hair care and dermatological solutions with a strong base in research and development. Enavose offers a range of Swiss-made skin-care and body-wellness solutions.
Global Vantage is present in 10 countries — Singapore, Malaysia, Vietnam, China, Hong Kong, Taiwan, Indonesia, the Philippines, Cambodia and South Korea — and has a manufacturing facility and R&D center in Singapore.
“With GV in Singapore now, and the [slimming and beauty services provider] Wyann Malaysia acquisition last year, VLCC will not just be in a strong position to offer the best in beauty and wellness solutions and services to customers in Singapore and Malaysia, but across the entire region,” VLCC chairman Mukesh Luthra said.
The acquisition will also give VLCC additional manufacturing strength — adding to its two factories in Haridwar and Dehradun in India.
VLCC has been one of the innovative fast-moving consumer goods companies that has both a salon concept as well as retails beauty products. The company has been growing in international markets and is now in 16 countries across the world, mostly in India and the Middle East with company-managed operations in India, Sri Lanka, Bangladesh, Nepal, Malaysia, Singapore, the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait and Saudi Arabia.
The acquisition will add additional strength to VLCC’s positioning in the masstige segment. Analysts say that with the fast growth of masstige in the Indian market, the acquisitions help give the companies faster economies of scale and an ability to compete and accrue growth despite the presence of a growing number of global brands in India.