Skincare firm Kaya Ltd said on Friday it has agreed to acquire a 75% stake in two dermatology centres based in Dubai and Sharjah to expand its presence in the United Arab Emirates.
“This acquisition will strengthen the company's network of clinics in the UAE region and add a new set of customers to our existing base in the region,” Kaya said in a statement to the stock exchanges. This takes its total network of clinics in the Middle East to 23, it added.
The agreement is subject to statutory approvals and will take about four months to come into effect, Kaya said.
The Minal Medical Centre, Dubai, and Minal Specialized Clinic Dermatology, Sharjah, provide skincare, body and hair services, the statement said. The two entities reported revenue of AED11.17 million (about Rs 20 crore), as per the audited financial statements for the year ended 31 December 2015, it added.
The Minal Medical Centre was started by Minal Patwardhan in 1997 and its client base is spread across India, Pakistan, Oman and Saudi Arabia, according to its website.
Kaya, part of Indian consumer goods group Marico, had entered the Middle East in 2004 with its first clinic in Dubai. It now operates clinics across the UAE, Saudi Arabia, Kuwait and Oman.
The Middle East region accounted for 52% of its net revenue of Rs 98 crore in the April-June period of this fiscal year, according to a statement available on the stock exchanges.
Earlier, Kaya along with a local partner increased its holding in Abu Dhabi-based Iris Medical Centre LLC to 85% from 75% in March.
In India, it operates more than 100 skin clinics and over 100 Kaya Skin Bars across 27 cities. Kaya skincare solutions include services in the areas of acne/acne-scar reduction, pigmentation, anti-aging, hair reduction as well as regular beauty enhancement and maintenance services.
Kaya was earlier part of consumer products maker Marico. In 2013, Marico decided to restructure its businesses into two entities by splicing the beauty and wellness business under a separate listed firm Marico Kaya Enterprises Ltd (MaKE) through a vertical demerger. Following this, Kaya was listed in July 2014.
Shares of Kaya on Friday ended at Rs 757.90, up 6.6% on the BSE in a weak Mumbai market.
Like this report? Sign up for our daily newsletter to get our top reports. Leave Your Comment