Carlyle buys majority stake in India's VLCC for $300 million - sources

FILE PHOTO: The logo of The Carlyle Group is displayed at the company's office in Tokyo

BENGALURU (Reuters) -Private-equity firm Carlyle Group has acquired a majority stake in Indian beauty care and wellness solutions provider VLCC for around $300 million, two sources told Reuters on Tuesday.

The equity for the transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners, Carlyle said in a statement, without specifying a deal value.

A Carlyle spokesperson declined to comment.

VLCC's online sales - up from 7% of total sales to 22% in the past three years - would help the skincare and beauty products brand gain a distinct value proposition, Amit Jain, managing director and co-head of Carlyle India, told Reuters on Tuesday.

"In a crowded market, having a distinct value proposition with high product efficacy and an established brand is very valuable, and that's what VLCC has," Jain added.

Founded in 1989, VLCC has a network of 210 retail "clinics" in 118 cities across 11 countries in South Asia, the Middle East and Africa.

Founders Vandana Luthra and Mukesh Luthra will continue to hold a significant stake in the company, Carlyle said, without sharing further details.

India's beauty and personal care industry is expected to grow to $27.5 billion by 2025 from $17.8 billion in 2020, according to estimates by Indian financial services firm Avendus.

In December, the parent of Indian personal care products startup Mamaearth filedfor an initial public offering.

KPMG India was the adviser to VLCC and its founders.

(Reporting by Sriram Mani in Mumbai, Ashish Chandra and Nishit Navin in Bengaluru; Editing by Sohini Goswami and Nivedita Bhattacharjee)