Fast-moving consumer goods maker Emami Ltd said on Friday that it has picked up a 7.54% stake in US-based beauty care products firm Loli Beauty Inc. for $565,000 (Rs 3.83 crore) in a cash deal.
In a stock-exchange filing, Emami said it had made in the investment in Loli Beauty through its wholly-owned subsidiary Emami International FZE, which is based in the United Arab Emirates.
Separately, Emami also said that one of its promoters had invested $100,000 (Rs 68 lakh) in Loli Beauty for a 1.33% stake. The identity of the promoter has not been disclosed.
Incorporated in July 2014, Loli Beauty was founded by Tina Hedges, who had stints with L'Oréal, The Estee Lauder Companies and Halston Borghese before becoming an entrepreneur, according to her LinkedIn profile.
Loli (Living Organic Loving Ingredients) Beauty sells organic ingredients which can be blended by the end user. It calls this concept a Blend-It-Yourself recipe and its products include oils, moisturisers, cleansers and toners.
The company says it only uses superfood, organic or wild harvested ingredients that are fresh and minimally processed to retain their potency and effectiveness.
The financial statements of the company were not immediately available.
This marks the third investment by Emami in the beauty products segment in less than a year.
In February, the company had agreed to pick up 26% stake in professional beauty care products manufacturer Brillare Science for an undisclosed amount.
Last December, it agreed to buy a 30% stake in Helios Lifestyle Pvt. Ltd, which owns the male grooming brand The Man Company.
Emami also operates in the male grooming segment through its brands Fair and Handsome, and HE.
Emami Ltd is the flagship business of Emami Group, a diversified business conglomerate founded in 1974 by RS Agarwal and RS Goenka. It owns businesses in diverse sectors ranging from FMCG and personal care to healthcare, cement, newsprint and paperboard, biodiesel and edible oil, real estate, solar power, writing instruments and pharmacy retail.
Some of the personal care and healthcare brands under its umbrella include Zandu pain balm, BoroPlus antiseptic cream and Navratna hair oil.