Carlyle Group Likely To Buy 60-70% Stake In VLCC Health Care

According to media reports, Carlyle Group may buy 60-70 per cent stake in VLCC Health Care

A three-decade-old company that has made its mark in health care and beauty products is going to be sold. Private equity group Carlyle is all set to buy 'VLCC Health Care'. In the recent times, the beauty and personal care business has grown exponentially, seeing that the Carline Group is trying to make VLCC its own. It is believed that this deal may be finalised soon.

According to media reports, Carlyle Group may buy 60-70 per cent stake in VLCC Health Care. This deal can be worth Rs 2500 crore. After this primary infusion, Carlyle will buy shares from the Luthra family as a secondary purchase. It is being told that talks are going on between the two companies and an official announcement can also be made by next week. VLCC founder Vandana Luthra and her husband Mukesh Luthra hold 95 per cent stake in VLCC Health Care. Others have the remaining 5 per cent stake.

It is being told that the Luthra family will continue as an investor in VLCC, but after the deal is finalised, Carline will change the management team, so that the plan to grow the business can be worked out faster. Vandana Luthra started this company as a weight loss company. Gradually she expanded the business and VLCC became a big name in the beauty and personal care business.

VLCC is no longer just limited to weight loss, the company is also manufacturing many beauty products. VLCC's 70 per cent business is focused on beauty and skin care. Face washes, Vitamin C creams, serums, face packs, sunscreens, body butters, shampoos and beauty service centers contribute a great deal to the company's earnings. The sales of VLCC from the e-commerce channel has doubled to 40 per cent in the last 3 years. The company sells products with Flipkart, Amazon and Apollo Pharmacy and also through its website.

Recently VLCC has opened the first Residential Wellness and Medi Spa in Thailand. It provides solutions for medical and chronic diseases related to lifestyle, detoxification therapy, spas for body, skin and hair and other beauty treatments and aesthetic dermatology treatments.