ACQUISITION NATIONAL
MUMBAI, MAHARASHTRA, INDIA
By IFAB MEDIA - NEWS BUREAU - July 21, 2023 | 64 2 minutes read
In a major move to further strengthen his retail empire, Radhakishan Damani, the billionaire founder of Avenue Supermarts, has acquired Bangalore-based beauty and personal care brand, Health and Glow, for an estimated ₹700-750 crore. The acquisition marks Damani's second significant purchase after Bombay Swadeshi Stores in 2015. Health and Glow, a popular personal care retail chain, was purchased from the family offices of Rajan Raheja and Hemendra Kothari. With a net worth of $15 billion as of April 4, 2023, Damani's latest strategic move adds to the ongoing consolidation trend in India's beauty and personal care market.
Health and Glow, a well-established beauty and personal care brand founded in 1997, has garnered a loyal customer base and expanded its presence to over 175 stores across various Indian cities, including Bengaluru, Mangaluru, Pune, Mumbai, Cochin, Kolkata, Bhopal, Bhubaneshwar, and Hyderabad. In the fiscal year 2022, the company achieved a remarkable topline of Rs 200 crore and is projected to close FY23 with sales amounting to ₹370 crore and an impressive 15 percent Ebitda margin.
The acquisition comes at a time when the beauty and personal care market in India is rapidly growing and is estimated to reach a value of $18.3 billion by the end of 2023, according to market research firm Euromonitor International. With Damani's entry into the segment, Health and Glow will be competing with well-funded players like Nykaa, who have been dominating the sector in recent times. The sector is witnessing an increasing trend of consolidation, with larger conglomerates making strategic entries into the space.
Radhakishan Damani's Avenue Supermarts Ltd, which operates the popular hypermarket chain DMart, has reported a YoY net profit rise of 2.3 percent for the quarter ending June, amounting to ₹695.36 crore. Despite the moderate net profit growth, the company recorded an impressive 18 percent YoY revenue growth, reaching ₹11,584.40 crore in the same quarter.
As of June 30, 2023, Avenue Supermarts boasts an extensive presence with 327 operating stores, spread across an impressive 13.5 million sq. ft. retail business area encompassing Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh, and Punjab.
The acquisition of Health and Glow is expected to further solidify Damani's position in the retail market, enabling him to tap into the growing beauty and personal care segment and diversify his retail portfolio. As the sector continues to witness rapid expansion and market competition, Damani's latest move signals his ambitions to lead the retail industry in India.
