Jio Investor KKR buys controlling stake in Fogg maker Vini Cosmetics

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Jio Investor KKR buys controlling stake in Fogg maker Vini Cosmetics
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  • KKR has invested $625 million for a controlling stake in Gujarat-based Vini Cosmetics.
  • Vini Cosmetics founders and existing investor Sequoia Capital have sold a part of their stake in the company.
  • The 11-year old company sells its products in over 55 countries, and has a network of 7 lakh points of sale in India.
American private equity firm KKR has invested $625 million for a controlling stake in Gujarat-based Vini Cosmetics, the maker of Fogg brand of deodorant. The transaction is expected to close by July 2021.

Vini Cosmetics’ founder group led by the father-son duo Darshan Patel and Dipam Patel, along with existing investor Sequoia with 17% shareholding, will be selling a majority of their stake in the company to KKR. Another existing investor WestBridge Capital will acquire further stake from the Vini Cosmetics’ founders in order to raise its shareholding from 21% to 23%.

KKR, in a press note released on Monday, has announced that the company’s co-founders and WestBridge Capital will continue to hold a significant position in Vini Cosmetics. Darshan Patel will continue as the chairperson of Vini’s board, while Dipam Patel will be appointed as vice chairperson. It did not divulge the co-founders’ current stake in the firm.

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“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… KKR has a proven track record of investing in the growth of some of India’s most innovative and disruptive homegrown champions, as well as in leading consumer and personal care companies globally,” Darshan said.

KKR-Vini Cosmetics' Deal Advisors
CompanyRoleClient
Shardul Amarchand and MangaldasLegal AdvisorsVini Cosmetics
KPMG, EY, AZB & Partners and STBAdvisorsKKR
Steer AdvisorsTransaction AdvisorsVini Cosmetics, KKR
Source: KKR, Vini Cosmetics Press Note

Vini Cosmetics, founded in 2010, manufactures, markets and distributes branded cosmetics, deodorants and toiletries through its flagship brand Fogg. It also has brands like perfume brand OSSUM and powder cream brand GlamUp under its banner. The products are sold in 55 countries, and have a significant presence across South Asia and the Middle East.


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Jio Investor KKR buys controlling stake in Fogg maker Vini Cosmetics

In order to maintain its position, the company has created a distribution network of over seven lakh points of sale (PoS), 3,000 dealers and a sales force of 1,200 in India alone. KKR’s partner Gaurav Trehan emphasises that Vini Cosmetics has established itself as the fastest growing personal care company in India.

KKR is making this investment through its Asian Fund IV, which has invested in Lenskart, Reliance Jio and Reliance Retail since last year. The company owns about 1.2% stake in Reliance Retail and 2.32% stake in Reliance Jio.

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KKR's Indian Portfolio
CompanyHQYear Of Investment
Avendus CapitalMumbai2016
EuroKidsMumbai2019
FiveStarChennai2021
Max HealthcareNew Delhi2017
Reliance JioMumbai2020
Reliance RetailMumbai2020
*Source: KKR's Website



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