Marico Kaya lists after demerger with market cap of around $50M

Marico Kaya Enterprises Limited (MaKE), the beauty and wellness arm of domestic FMCG major Marico, has listed on the bourses on Tuesday.

MaKE provides health care, aesthetics, beauty and personal care services in India and abroad either directly or through one or more of its subsidiaries. It is also a holding company of Kaya Ltd which currently owns and operates 86 Kaya Skin Clinics in 26 cities in India.

Harsh Mariwala, chairman and whole-time director, MaKE, said, “MaKE being listed independently reflects the beginning of a new journey for Kaya. We believe that Kaya has a distinct potential to create value as an emerging specialised skincare business.”

Last year, Marico decided to restructure its businesses into two entities by splicing the beauty and wellness business under a separate listed firm MaKE through a vertical demerger.

Marico had two years ago attracted Singapore’s sovereign wealth fund GIC and Baring Private Equity Partners India. The two investors had put in Rs 500 crore ($100 million that time) through a PIPE deal wherein GIC picked 3.4 per cent while Baring PE India acquired 1.1 per cent stake.

Given the mirror shareholding structure after the demerger, the two investors hold the same stake in MaKE too.

MaKE generated a consolidated turnover of Rs 362 crore for the financial year ended March 31, 2014, including DIAL (Singapore) business which was sold out in January 2014. MaKE’s consolidated operating profit (before exceptions) was Rs 22 crore and net profit after tax and exception items of Rs 35 crore for FY14.

S Subramanian, CEO, Kaya India, said, “We will strive to stay ahead of the curve by continuing to invest in advanced, internationally approved technologies and build the Kaya India business further.”

Kaya skincare solutions include services in the areas of acne/acne-scar reduction, pigmentation, anti-aging, laser permanent hair reduction, etc. along with regular beauty enhancement and maintenance services.

It also has an array of skincare and haircare products ranging from daily skin care to specific skin concerns like acne/acne scar, pigmentation, aging, etc. These products are also present across the three recently launched product-led retail outlets called Kaya Skin Bar present in Bangalore.

(Edited by Joby Puthuparampil Johnson)

Leave Your Comment(s)