Kolkata: Consumer goods maker Emami Ltd on Monday said it had concluded a deal to acquire a substantial minority stake in Brillare Science Pvt. Ltd, valuing the company at Rs75-100 crore.
Founded in 2009 and based in Ahmedabad, Brillare produces hair and skin care products, and sells them to professional salons.
On Monday, Kolkata-based Emami said it would subscribe to compulsorily convertible preference shares in two tranches, which on conversion in three years, will result in a 26% stake in Brillare. Emami will soon appoint a director on the board of Brillare, it said in a statement.
Emami has the right to ramp up its stake in Brillare, said Harsha V. Agarwal, a director, adding that under the deal, performance targets have been set for Brillare.
Emami currently does not sell through grooming salons, but based on its experience of working closely with Brillare, it may bring these products within its own distribution network to supply to premium outlets going ahead, according to Agarwal.
Brillare was founded by Jigar Patel and has three beauty care brands primarily sold through salons, Emami said.
“With its strong business insight and deep industry experience, (Emami) is a perfect partner to help us accelerate our growth and take it to the next level," Patel was quoted as saying in Emami’s statement.
“We found Brillare’s ideas inspiring," Agarwal was quoted as saying in the statement. “The investment is in line with (Emami’s) strategy of exploring the professional personal care segment such as high-end salons."
Emami sees these channels becoming important going forward but they would require different capabilities, expertise and products, the statement said.
In early December, Emami announced it had agreed to acquire a 30% stake in another new consumer goods maker, Helios Lifestyle Pvt. Ltd, which sells upscale men’s grooming products under The Man Company brand.