Samara Capital, a private equity fund focused on midmarket buyouts, has acquired the majority stake in Nature’s Essence in a deal worth Rs 200 crore, giving the New Delhi-based cosmetics brand an enterprise value of Rs 300 crore.
Samara has bought 65% of Nature’s Essence Private Limited (NEPL), which along with its group entities makes and markets a range of skin-care products under the eponymous brand. Its face-care products are sold in more than 200,000 retail outlets and 40,000 salons through a pan-India distribution network.
Established in 1998, NEPL is among the leaders in the skin-whitening market, competing with companies such as Dabur, VLCC and Patanjali.
The cosmetics sector in India has seen several acquisitions in the past. In 2013, the Indian arm of L’Oréal SA had acquired Mumbai-based Cheryl’s Cosmeceuticals, which sells skin-care products through beauty salons in 2013. The Indian beauty and personal care industry is estimated to be worth $8 billion and could expand to $20 billion by 2025.
“In recent times, we have observed a whole new demographic of consumers emerging for personal and skin-care products as consumerism, aided by the information revolution and purchasing power, seeps into the hinterland,” said Abhishek Kabra, Managing Director, Samara Capital.
It is the second buyout by Samara in the consumer segment in the past one year after it partnered Amazon to acquire More, the retail chain of the Aditya Birla group.
NEPL will utilize the funds for investment into marketing and distribution and consolidation of group entities.
The company posted revenue of Rs 150 crore in FY19. Promoters of Nature’s Essence also own Magic MediaWorld, a media outlet publishing three beauty- and wedding-related magazines.
