Endura Mass maker Medinn Belle in talks with PE funds to sell 40% stake
Medinn Belle plans to raise about Rs200 crore through the stake sale
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Mumbai: Medinn Belle Herbal Care Pvt. Ltd, the maker of popular protein supplement Endura Mass, is in initial talks with private equity funds to sell about 40% in the company, according to two people close to the development.
The company plans to raise about Rs200 crore through the stake sale, one of the two said, requesting anonymity.
The management has been in unsuccessful talks with a couple of India-based packaged consumer goods companies as well as a leading drug maker to sell the Endura Mass brand, the first person said. The company now plans to sell a significant minority stake to a private equity fund, the person added. The company has hired a Delhi-based boutique investment bank to mange the stake sale.
Medinn Belle, which reported an annual revenue of Rs87 crore in the year ended March 2016, is expecting a valuation of six times of revenue, the second person said on condition of anonymity.
The company, established in 1996 by D.K. Singhal, Dr. Simi Dutta and Dr. K.K. Kaushal, sells dietary supplements under three categories: general nutrition, sports nutrition and gym. In India, Endura Mass is marketed by Knack Healthcare Pvt. Ltd, which sells other premium brands like Prolab and Redveik (Enforce) in India.
“We are in discussions for fund-raising, but it’s too early to share financial details,” said a spokesperson for Medinn Belle on Wednesday.
The dietary supplements market in India is currently estimated at about $2 billion and is likely to double to $4 billion by 2020, clocking a compounded annual growth rate (CAGR) of about 16%, according to a December 2015 report by lobby group Assocham report.
Higher purchasing power has made people more health-conscious and prompted them to adopt a healthy diet routine along with consumption of nutritional supplements, said the report.
“The protein and health supplements market is fast growing in the country especially as a large part of the population is primarily vegetarian and there is an increasing awareness of the lack of proteins in our diets. The large consumer packaged goods companies currently don’t have a presence in this centre and some of them could look at this sector as they look at new segments to expand through inorganic growth,” said Rohan Rao, director, deal advisory, KPMG India.
Ayurwin Pharma Pvt. Ltd, a Bengaluru-based firm that makes herbal health and fitness product such as NutriSlim and NutriGain, is also looking to raise funds from private equity firms. Ayurwin Pharma is planning to raise funds from PE investors by selling 25-30% of its stake, for Rs150-200 crore, Mint reported in March.
Vitamin and mineral supplements will form major areas of opportunities for nutraceutical companies in the coming years driven by rising demand from an evolving customer base with middle class population being the major consumers, Assocham said.