BackGood Glamm Group forms 3 divisions; eyes foreign foray
It created three divisions—Good Brands Co., Good Media Co., and Good Creator Co
PremiumNEW DELHI : Content-to-commerce platform The Good Glamm Group on Tuesday said it has reorganized its business by creating three divisions—Good Brands Co., Good Media Co., and Good Creator Co.—following a string of acquisitions across media, consumer goods and influencer engagement platforms.
The new structure consolidates the group companies into independent brands, media and creator divisions, each led by a separate business head. Good Brands Co. will be led by Sukhleen Aneja; Good Media Co. by Priyanka Gill and Good Creator Co. by Sachin Bhatia.
“This consolidation unlocks structural efficiencies within each division while also driving cross-division revenue synergies, which will allow each division to be independently profitable," the company said.
The company has also set up an international business division that will sell its direct-to-consumer brands such as MyGlamm and The Moms Co., in the Middle East and Southeast Asian markets to “maximize revenue potential for all beauty and personal care brands in the group."
The company has earmarked ₹100 crore for its international foray, with a revenue target of over ₹1,100 crore or $150 million over the next three years. The international division is led by Asad Raza Khan, who has been appointed global commercial officer, the Good Glamm Group.
Creation of the new divisions mark the culmination of the group’s 11 acquisitions in 2021 totalling $270 million, including media platform ScoopWhoop and direct-to-consumer brand The Moms Co.
“Over the last 12 months, we’ve made numerous acquisitions. And what we’ve been doing over the last six months was integration. When you do these acquisitions there are two primarily benefits—one is cost synergies and the second is revenue synergies," Darpan Sanghvi, founder and CEO, The Good Glamm Group said.
“Each division will operate independently with an independent P&L (profit and loss) and each one has to be profitable," he added.
The group’s co-founder Priyanka Gill said the formation of the three divisions reflects the group’s “content-creator-commerce strategy".
“Core functions are being integrated between the various companies within each of the three divisions which has led to efficiencies through removal of role duplications and allows for each division to be independently with the back-end teams being centralized," she added.
The Economic Times had earlier reported that The Good Glamm Group was in talks to acquire Raymond group’s consumer care products business in a cash-and-stock deal; the deal, however, stalled over valuation issues.
Sanghvi did not rule out possible acquisitions in the future, especially to get a greater play in the offline consumer care market as well as participate in categories such as male grooming. Talks for the Raymond’s consumer care products business are still on.
However, markets have turned choppy, with investors warning of a funding winter. This is prompting companies to negotiate valuations harder.
“Undoubtedly, the whole macro-environment on the way companies are priced has changed dramatically; access to capital has also changed. We are in a bunch of different discussions currently for other acquisitions, but everywhere there is a re-negotiation," he added.
Later this year, the group anticipates making an acquisition in the offline space and in the category of men’s grooming to complete.
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