Carlyle Group Inc., a global investment firm, has acquired a majority stake in VLCC, a wellness and beauty products company. VLCC, which was founded in 1989, currently operates 210 retail “clinics” in 118 cities across 11 countries in South Asia, the Middle East, and Africa.
The transaction’s terms were not disclosed by Carlyle. But according to source materials, Carlyle has purchased 65–70% of the three-decade-old, homegrown company in a primary infusion for Rs 2,255-2,460 crore ($275–300 million). The equity for the transaction will be aided by funds managed and advised by the entities affiliated with Carlyle Asia Partners.
The founding members, Vandana Luthra and Mukesh Luthra, will certainly retain a significant stake in the company, Carlyle said, without further disclosing the deal value.
This investment reflected Carlyle’s overall belief in India’s long-term domestic and economic consumption growth, characterised by product premiumization and a transition in preference among the rising middle class toward established brands.
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