FMCG major Marico has exited its over two-year-old investment in Mumbai-based startup Bellezimo Professionale Products Pvt Ltd, which provides skincare products mainly to salon chains, the company said in a stock market disclosure.
The publicly listed consumer goods company had picked up around 45% stake in Bellezimo in 2015. Through the deal, Marico intended to use the salon channel to market and distribute its own hair and skin care products.
Marico sold its entire stake to the promoters of the company for Rs 1.6 crore ($246,000), it said in the disclosure.
“After evaluating the long-term prospects of this investment, the company has now exited the venture,” it stated.
Launched in 2015 by Dinesh Bhat, a former Hindustan Unilever executive, Bellezimo has a range of skin lotions and firming and whitening products under the Skyn Pro Natural brand.
Recently, Pankaj Saluja, who was the firm’s chief of strategy, mergers and acquisitions and new business opportunities, resigned. Under his leadership, Marico was exploring inorganic growth opportunities in its existing markets as well as regions such as East Africa and Southeast Asia.
The FMCG major, which was founded in 1988, is currently present in South Africa and Egypt in Africa, Malaysia and Vietnam in Southeast Asia, apart from India and Bangladesh in South Asia and some Middle Eastern nations.
Marico’s other bets
Marico, the maker of Parachute hair oil and Saffola cooking oil, struck a couple of deals under Saluja. Earlier in 2017, it entered the male grooming market by picking up a stake in Zed Lifestyle Pvt. Ltd, which owns Beardo.
In July 2017, it acquired leading South African hair styling brand Isoplus for about Rs 36 crore ($5.6 million) in a bid to complete its ethnic hair care portfolio in the country.
In September 2017, private equity firm Baring Private Equity Partners India (Baring PE India) exited its investment in the firm. According to VCCircle estimates, the PE firm pocketed around Rs 425 crore ($66 million) from the exit, clocking an internal rate of return of 30% in rupee terms.
However, Baring PE India remains invested in Kaya Ltd (formerly Marico Kaya Enterprises Ltd), the beauty and wellness firm that was spun out of Marico as a separately listed company.
Singapore sovereign wealth fund GIC had previously exited Marico in various tranches.
The consumer good giant posted net sales of Rs 4,868 crore for the financial year 2016-17 as compared with Rs 4,947 crore in the previous year.