Kishore Biyani-led Future Consumer Ltd has exited its nearly six-year-old investment in non-core beauty and wellness chain Star and Sitara Wellness Ltd.
Future Consumer sold its investment in Star Sitara, which had discontinued its operations since 2014-15, according to a stock market disclosure. “The company has disposed its non-functional-non-core investments held in Star and Sitara Wellness Ltd,” the company said in an NSE filing on Sunday.
The retail major has also sold its investment in another subsidiary, Express Retail Services Pvt, Ltd. The Delhi-based retailer offers food, personal care and home care products under the Big Apple Stores brand.
Both businesses have been sold to Mumbai-based entity Shubham Business Ventures Pvt. Ltd, the company said.
In 2015, Future Group had indicated that it would seek to exit its investment in the salon business.
Future Consumer, formerly known as Future Consumer Enterprise Ltd, had acquired Star and Sitara from group flagship Pantaloon Retail India Ltd for a nominal sum of Rs 1 lakh in September 2012. Subsequently, it had pumped in close to Rs 18 crore to revive the business.
Back then, the salon chain had 30 centres. Thereafter, it had consolidated the business by discontinuing some of the non-profitable stores. In 2014-15, the company had reported sales of Rs 4.3 crore, against Rs 6.8 crore in the year-ago period.
The salon market, which is highly fragmented, has a few established players. Star and Sitara competes with JCB Salons and BBLUNT, among other homegrown brands. Other players in the space include Hindustan Unilever’s beauty products brand Lakme’s salon chain, Naturals and Kaya Clinic, which was spun out as a standalone offering by consumer goods firm Marico and VLCC.
However, the salon and spa segment has not seen much fundraising in the recent past. Delhi-based Affinity Beauty Salon Pvt. Ltd was looking to raise capital. It had also mandated an investment bank to reach out to potential investors.
Venture capital fund Helion Venture Partners is also planning to sell its stake in the Bengaluru-based beauty and spa salon chain YLG India.
Mumbai-based JCB Salons Pvt. Ltd was likely to acquire hair solutions specialist Trica Hair Clinic and home service brand The Home Salon to enhance its offerings.
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