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Business News/ Companies / News/  Kareena Kapoor forms JV with Sugar Cosmetics' owner
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Kareena Kapoor forms JV with Sugar Cosmetics' owner

Celebrities are increasingly launching their line of beauty products or working with companies to lend their names to brands

Vineeta Singh, Co-founder & CEO SUGAR Cosmetics ; Kaushik Mukherjee, Co-Founder & COO, SUGAR Cosmetics ; Kareena Kapoor Khan, Co-Owner and Investor, Quench Botanics.Premium
Vineeta Singh, Co-founder & CEO SUGAR Cosmetics ; Kaushik Mukherjee, Co-Founder & COO, SUGAR Cosmetics ; Kareena Kapoor Khan, Co-Owner and Investor, Quench Botanics.

New Delhi: Vellvette Lifestyle Pvt. Ltd., which owns and operates beauty brand Sugar Cosmetics, has entered into a joint venture with actor Kareena Kapoor Khan for its skincare brand Quench Botanics. Khan joins Quench Botanics as a strategic investor and co-owner, as the company looks to capitalize on her social media clout to grow the brand.

Vellvette Lifestyle launched Quench Botanics last year with the goal of bringing Korean beauty products and regimens to consumers in India. The products are currently made in Korea and are available in 1,000 offline stores.

Discussions held earlier this fiscal with the actor, also the face of Reliance Retail’s beauty platform Tira, brought her in as investor and co-owner of the brand. 

“What we bring to the table is the education and the distribution, and Kareena brings the passion for the category. That’s why we decided to come together in this joint venture—so she’s coming as an investor and a strategic partner," Vineeta Singh, co-founder & CEO, Sugar Cosmetics, said in an interview.

Skincare could account for about 15% of the company’s revenue within two to three years, in time for the company’s anticipated public market listing, she said. Brand Sugar largely sells coloured cosmetics such as lipsticks, eye shadow sticks, and cream concealers. It competes with brands such as Lakme and Maybelline. Quench’s portfolio, on the other hand, focuses on creams, skin patches and serums or more skin care products.

Celebrities are increasingly launching their line of beauty products or working with companies to lend their names to brands. With the beauty market growing at a fast pace, it is easy to understand why. India’s beauty and personal care (BPC) market is set to touch $30 billion by 2027, consulting firm RedSeer said in a report last month.

“India is the only market in the world where the beauty and personal care market is set to grow in double-digits over the next decade. Celebrities see that there will be large brands that didn’t exist five years ago. I feel they’ve realized that partnering with companies, which will create the brands of the future, will help them have a long-term impact, as opposed to say annual endorsement opportunities which are really linked to a celebrity’s career in that given year," Singh said.

In May last year, the company had raised $50 million in Series D fundraise led by the Asia fund of L Catterton. Existing investors, A91 Partners, Elevation Capital, and India Quotient also participated in the round. In September 2022, Bollywood actor Ranveer Singh picked up a minority stake in the beauty and personal care company.

Singh said the company is not eyeing another fund-raising round. Startups in general have been facing the heat of an overall funding slowdown. Sugar is working to manage cash flows prudently.

“As of now, we are not looking at raising funds. We just raised a round from L Catterton last year. We are also expecting that from next month onwards we would be profitable. The idea is to actually manage our cash flow and working capital as well as our bottom line in a way that we don’t need to raise money in a relatively tougher market," she said.

Sugar started out as a direct-to-consumer beauty brand in 2015. Online sales aside, it is currently present at more than 45,000 retail points across 550 cities. It draws 50% of its sales from online commerce.

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ABOUT THE AUTHOR
Suneera Tandon
Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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Published: 13 Oct 2023, 01:18 PM IST
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