Future Ventures India Ltd has acquired the salon and wellness centre business from Pantaloon Retail India Ltd that operates the business under the brand Star & Sitara. The public-listed investment-cum-operational company, modelled after Warren Buffet’s Berkshire Hathaway, recently struck another deal where its FMCG arm announced plans to acquire the convenience store chain under the Future Group flagship Pantaloon Retail.
According to a stock market disclosure, Future Ventures is acquiring 100 per cent stake in a firm called Star & Sitara Wellness Pvt Ltd for Rs 1 lakh and is going to pump in another Rs 17.99 crore in the company.
The disclosure also adds that this entity has acquired an ongoing business of salon and wellness centres from another group company. Although it has not disclosed the deal value, it is said that the business has presence through 30 centres and the acquisition involves assets and liabilities, along with the brand Star & Sitara.
This business is expected to generate revenues of Rs 19 crore in the current fiscal.
Two years ago, an equal-equity joint venture between fitness chain company Talwalkars Better Value Fitness Ltd and Pantaloon Retail (India) Ltd had acquired the beauty and hair salon chain operating under the brand Star and Sitara for an undisclosed amount.
Star & Sitara was owned by the Pantaloon Group that had earlier launched private label beauty products, such as nail paints, under the brand.
Post that transaction, Talwalkars’ stake in the JV called Talwalkars Pantaloon Fitness Pvt Ltd or TPFPL got diluted to 10 per cent. The company’s name was, thereafter, changed to Splendor Fitness Pvt Ltd. This firm had revenues of Rs 5.76 crore with net loss of Rs 8.68 crore for the year ended June 30, 2011. It also runs Fit & Active Gym.
(Edited by Sanghamitra Mandal)