PremjiInvest, the private investment firm of Wipro Ltd chairman Azim Premji, has invested Rs 216 crore ($33 million) to pick up a significant minority stake in Mumbai-based consumer products company Hygienic Research Institute Pvt Ltd, according to a press release.
Hygienic Research Institute, which has presence across hair colour, hair care, skin care and fragrance categories, owns Super Vasmol and Streax brands of hair colour products. The company had posted revenue of Rs 350 crore last financial year.
“PI’s investment will spur us towards realising our vision of growing into a Rs 1,000-crore company in five years and creating significant stakeholder value,” said Manish Chhabra, CEO and managing director at Hygienic.
Chhabra said the company is looking to widen its footprint and commercialise new products. The funding by PremjiInvest will help Hygienic to invest in automation of factories, upgrade its IT systems and give a thrust to research and development, he added.
Hygienic has five manufacturing plants in India, at Mumbai, Baddi and Guwahati. It claims it reaches 1.5 million retail outlets, 1,000 modern trade outlets and 15,000 salons across the country.
The company was founded in 1950 by late S.S. Nishat. Over the years it has built brands such as Super Vasmol 33, Keshkala, Vasmol Kali Mehendi, Super Vasmol Aamla Herbal Powder Hair Dyes, Vasmol Shaving Cream, Streax Hair Colour, Streax Pro and Streax Euro range of professional products, Yogiraj Thanda Tel, Florozone range of skincare products and Silkiss Shampoo range.
It also has retail presence in the hair-care segment in Bangladesh and Nepal and its products are exported to about 20 countries.
For PremjiInvest, this marks another addition to the growing list of its investments in the FMCG segment and second in a firm that is into hair care products. It is also an investor in Marico Ltd, the maker of Parachute hair oil and Saffola cooking oil. Wipro itself has a consumer care business that makes soaps, fragrances and skin care products.
Recently, PremjiInvest increased its holding in Jyothy Laboratories Ltd, a Mumbai-based consumer goods company known for fabric care brand Ujala and household insecticide Maxo.
Mumbai-based Candle Partners acted as the exclusive financial advisor to Hygienic, while Alvarez & Marsal India was the transaction advisory associate for both Hygienic and PremjiInvest.