Business Tycoon Radhakishan Damani Acquires Health and Glow for ₹750 Crores
Billionaire investor Radhakishan Damani, renowned as the founder of Avenue Supermarts, which operates the popular D-Mart retail chain, has made a significant acquisition by purchasing Health and Glow, a Bangalore-based beauty and personal care retail chain. The acquisition was carried out from the family offices of Rajan Raheja and Hemendra Kothari for an estimated amount of ₹700-750 crore.
Rajan Raheja is a prominent industrialist with diverse business interests. He is involved in various sectors, including cement, tiles, financial services, and automotives. Some of the businesses he owns or has interests in include Exide Batteries, which is a well-known battery manufacturing company, and Raheja QBE General Insurance, a joint venture between his listed company Prism Johnson and Australia’s QBE Insurance.
In addition to these ventures, Rajan Raheja also owns Outlook publishing Group, which is a media company. He previously sold a majority stake in his cable TV venture Hathaway to Reliance Industries, one of India’s largest conglomerates.
Hemendra Kothari is a veteran investment banker and entrepreneur with a notable presence in the financial services industry. He currently chairs DSP Investment Managers, a leading asset management company in India that manages around $15 billion in assets. Mr. Kothari founded the firm in 2008 in collaboration with BlackRock, a renowned Wall Street asset manager. However, after a decade of successful partnership, he bought out BlackRock’s stake, taking full ownership of the company.
In addition to his involvement with DSP Investment Managers, Hemendra Kothari has had other significant ventures in the financial sector. In 1995, he partnered with Merrill Lynch, a prominent global financial services firm. However, over time, he divested his ownership, selling his 57% stake in tranches between 2005 and 2009.
Throughout his career, Hemendra Kothari has demonstrated strong business acumen and a keen understanding of the financial markets. His contributions to the investment banking and asset management sectors have solidified his reputation as a prominent figure in India’s financial landscape.
This marks Damani’s second major buyout after he acquires Bombay Swadeshi Stores, the country’s oldest retailer, in 2015. The historic Bombay Swadeshi Stores had notable founding members such as freedom fighters Bal Gangadhar Tilak, Mummohandas Ramji, and industrialist JRD Tata. Damani secured this acquisition for ₹42 crore.
The transaction involving Health and Glow was completed through Damani’s flagship investment firm, Bright Star Investments. The deal had been conducted discreetly and was officially signed late last week.
As of June 2023, corporate shareholding data reveals that Radhakishan Damani’s public holdings include 14 stocks with a total net worth exceeding ₹166,949.6 crore. His largest holding is in VST Industries, where he is the single largest shareholder, and in India Cements, where his ownership of 21% makes him the largest public (non-promoter group) investor. Additionally, Damani has investments in the retail sector, with exposure to Trent, a chain backed by the Tata Group.
Health and Glow, the beauty and personal care retail chain that Damani recently acquired, has a significant history. Originally established as a joint venture between Spencer Retail and Hong Kong-based Dairy Farm, the chain is one of the earliest specialized retailers in this sector. Over the years, Spencer and Dairy Farm exited their initial partnership, and in 2015-16, Hemendra Kothari and Rajan Raheja purchased the Health and Glow chain, a year after the sale of FoodWorld to Kishore Biyani of the Future Group.
Health and Glow
Health and Glow, which was established in 1997, started with its first physical store in Chennai. Over the years, it has expanded its presence and now operates a network of more than 175 stores across various Indian cities, including Bengaluru, Mangaluru, Pune, Mumbai, Cochin, Kolkata, Bhopal, Bhubaneshwar, and Hyderabad, among others. In the fiscal year 2022, the company achieved a topline revenue of ₹200 crore, and it is projected to close FY23 with sales amounting to Rs 370 crore, with a 15% Ebitda margin.
The company’s management has emphasized its key focus on personalization, developing an omnichannel presence, and fostering innovation in effective products. However, one of the challenges lies in transforming Health and Glow into a pan-India brand and expanding its omnichannel capabilities, as it is currently primarily operating in the physical retail format.
Despite attempts to reach out to representatives of Damani’s family office, including Health and Glow’s CEO and MD K Venkataramani, no responses were received. Similarly, efforts to contact the Kothari and Raheja family offices also went unanswered. Additionally, Arpwood, the advisor to the deal, could not be reached for comments. As of now, the parties involved have not provided further information or statements regarding the acquisition.
The beauty and personal care market in India is projected to reach $18.3 billion by the end of 2023, as estimated by market research firm Euromonitor International. In recent times, the sector has witnessed the emergence of well-funded players like Nykaa, which have dominated the market.
This trend has led to increased consolidation of brands and attracted the entry of larger conglomerates into the industry. The acquisition of Health and Glow by billionaire investor Radhakishan Damani is an example of such consolidation and signals the growing interest of established players in the rapidly growing beauty and personal care segment in India.
