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Indian Personal-Care Company VLCC Files for IPO

Indian beauty market is primed for a growth spurt as VLCC files for IPO.

NEW DELHI, India — Beauty and personal-care company VLCC Health Care Ltd., one of the big players in the locally produced, natural-based skin-care segment, has put in an application with the Indian regulatory authority to go public.

“It shows the readiness of the beauty market for another growth spurt,” independent market analyst Shikhar Sharma told WWD.

The company is estimated to have a turnover of 10 billion rupees, or $154.14 million at the current exchange rate, and has an ambitious growth plan.

It aims to raise an additional four billion rupees to fund expansion locally and globally.

The beauty-and-wellness segment is expected to chalk up sales of approximately 800 billion rupees, or $12.4 billion, by the end of 2017, according to industry estimates.

Private equity company Everstone Capital Advisors Pvt. Ltd., which has a 15.11 percent stake in the company, is expected to sell half its ownership. The company had reportedly invested 60 million rupees ($924,600) in the company eight years ago.

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Launched in 1989 by fitness expert Vandana Luthra, VLCC has a strong market position in the mass personal-care segment and has more than 300 centers for slimming, beauty and wellness services, where its products also retail, along with a vast distribution network of more than 80,000 points of sale across India. An approximate 30 percent of sales are estimated to come from sales of personal-care products. The company has more than 100 stockkeeping units that claim to be in the naturals segment.

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VLCC has also focused on global growth and has centers in more than 11 countries, including Sri Lanka, Bangladesh, Nepal, Malaysia, Singapore, UAE, Oman, Bahrain, Qatar, Kuwait, Saudi Arabia and Kenya.

The company has also made two global acquisitions since 2013, including an 80 percent stake in Global Vantage Innovative Group (GVig), a Singapore-based company, which has a strong presence in color cosmetics and skin care. GVig had revenue of $60 million at the time.

Mukesh Luthra, chairman, VLCC Group said that the company would gain access to the laboratory and manufacturing facility in Singapore which would enable VLCC to come up with wellness products and solutions at a faster pace.

In November 2012, VLCC had bought a majority stake in Wyann International, a slimming and beauty services provider in Malaysia.

The VLCC Group has two factories in India, at Haridwar and Dehradun and another, recently opened, in Bangladesh.