Vini Cosmetics in talks with Apax, TA Associates & Advent to sell minority stake

Industry: Other 2016-08-04

MUMBAI | AHMEDABAD: Vini Cosmetics, Ahmedabad-based maker of Fogg deodorant, is in talks with leading private equity firms to raise about `600 crores by selling a minority stake, two people close to the development said.

The company is in talks with Apax Partners, TA Associates, and Advent International, they said. “Vini’s promoter has held multiple meetings with the private equity firms in the past one month,” said one of the persons, who did not want to be identified. The company could firm up a deal in the coming month or two, another person said.

Vini Cosmetics, started by Darshan Patel, who was among the family promoters of Paras Pharmaceuticals, manufactures personal care, pharmaceutical, and cosmetic products.

The company is looking to expand in the cosmetics business and is likely to use the funds raised for acquisitions. In 2013, it had raised about `150 crores from Sequoia Capital by parting with a minority stake.

Patel is expected to hold a majority stake in the company after fresh investment by private equity firms, the people cited earlier said.

ET could not ascertain whether the fresh investment sought by the company will give an exit to Sequoia. Queries emailed to TA Associates and Advent International did not elicit any response till press time late evening on Tuesday.

A spokesperson for Apax Partners refused to comment on the matter. Patel, who was in the United States, did not respond to an email query.

Patel had launched Vini Cosmetics after Paras Pharmaceuticals was acquired by the British consumer healthcare giant Reckitt Benckiser.

In 2010 Reckitt Benckiser had bought Paras Pharmaceuticals, the maker of Moov, D’Cold and Krack cream, for `3,260 crores. Two years later, Reckitt Benckiser sold the personal care portfolio of Paras Pharmaceuticals including Livon, Zatak and Setwet to Marica for `600 crores.

In the past two years, Patel has made a substantial impact with Fogg, turning it into one of the largest selling deodorant brands in the country. According to industry trackers, Fogg commands a market share of 10-15%, which could increase in the days ahead.

The promoter had earlier indicated that he may be looking for some acquisitions in the sector.

The people cited earlier said that in the coming year the company will focus on its growth plan and try to increase its market share in deodorant business by adding a few products.