Billionaire investor Radhakishan Damani, the founder of Avenue Supermarts has made an acquisition by purchasing Health and Glow a known beauty and personal care retail chain based in Bangalore. The deal is valued at, around ₹700- 750 crores. This move marks Damanis’s purchase and adds to his already diverse investment portfolio. It also aligns with the chain’s goal of expanding its presence, in India’s beauty market, which has been thriving for the past 26 years.
In a surprising turn of events, billionaire investor and Avenue Supermarts’ founder, Radhakishan Damani, has reportedly acquired the renowned beauty and personal care retail chain, Health and Glow, based in Bangalore. Sources claim that the deal amounted to a staggering ₹700-750 crore and involved the purchase from the family offices of Rajan Raheja and Hemendra Kothari.
Rajan Raheja, the industrious figure with interests spanning cement, tiles, financial services, and automotive, is known for his ownership of Exide Batteries and Raheja QBE General Insurance. Additionally, he was involved in a cable TV venture, Hathaway, which he sold a majority stake into Reliance Industries.
Hemendra Kothari, the veteran investment banker, who chairs DSP Investment Managers, boasts an impressive $15 billion in assets under management. He founded the firm in collaboration with BlackRock in 2008, subsequently buying out the latter’s stake a decade later. Kothari also had a past association with Merrill Lynch, selling off his stake gradually between 2005 and 2009.
Interestingly, this marks Damani’s second acquisition ever, following his 2015 buyout of Bombay Swadeshi Stores, India’s oldest retailer, which had illustrious founders like freedom fighters Bal Gangadhar Tilak and industrialist JRD Tata. The transaction was carried out discreetly through Damani’s flagship investment vehicle, Bright Star Investments.
According to corporate shareholding data up until June 2023, Damani publicly holds 14 stocks with a staggering net worth of over ₹166,949.6 crores. Among his prominent investments are VST Industries, where he is the single largest shareholder, and India Cements, where his ownership of 21% makes him the largest public investor outside of the promoter group. Moreover, he has a stake in Trent, the retail chain backed by the Tata Group.
Health and Glow, an esteemed beauty and personal care retailer with a 26-year legacy, was initially established as a joint venture between Spencer Retail and Hong Kong-based Dairy Farm. The chain also launched Food World, which was eventually sold to Kishore Biyani of Future Group. Over time, Kothari and Raheja acquired Health and Glow in 2015-16, a year after the sale of FoodWorld.
Launched in 1997, Health and Glow started its journey with a brick-and-mortar store in Chennai. Now, boasting a network of over 175 stores across various Indian cities, including Bengaluru, Mangaluru, Pune, Mumbai, Cochin, Kolkata, Bhopal, Bhubaneshwar, and Hyderabad, the company reported a topline of ₹200 crore in FY22. Projections indicate that it is set to close FY23 with sales amounting to Rs 370 crore and an impressive 15% Ebitda margin.
In a recent interview, the management of Health and Glow emphasized their focus on personalization, omnichannel presence, and innovation in efficacious products. They also acknowledged the challenge of transforming the brand into a pan-India entity with a truly omnichannel approach, given its current predominantly physical format.
India’s beauty and personal care market is estimated to reach $18.3 billion by the end of 2023, according to market research firm Euromonitor International. However, newer and well-funded players like Nykaa have dominated the sector, leading to increased consolidation of brands and the entry of bigger conglomerates into the market.
