Radhakishan Damani acquires Health & Glow for Rs 750 crore: Report
As of July 21, 2023, billionaire investor Radhakishan Damani, who is also the founder of Avenue Supermarts, the company that operates the popular D-Mart retail chain, has acquired Bengaluru-based beauty and personal care retailer Health and Glow. The acquisition was reportedly made for an estimated amount of around Rs 700-750 crore (Indian Rupees), equivalent to approximately USD 94-100 million.
The purchase was made from the family offices of Rajan Raheja and Hemendra Kothari, who were the previous owners of Health and Glow. The Economic Times reported the acquisition, indicating that it was a significant business move by Radhakishan Damani to expand his portfolio and enter the beauty and personal care retail sector through the acquisition of a well-established brand like Health and Glow.
Health and Glow is a renowned retailer that offers a wide range of beauty, personal care, and wellness products, catering to consumers’ needs in the fast-growing beauty and grooming industry in India. With this acquisition, Damani’s Avenue Supermarts is likely to gain a stronger foothold in the retail market, especially in the beauty and personal care segment.
As a prominent figure in the Indian business community, Radhakishan Damani’s strategic investments and business decisions often attract attention from industry experts and investors alike. The acquisition of Health and Glow adds to his entrepreneurial endeavors and further establishes his presence in the retail landscape of India.
Rajan Raheja is a prominent industrialist in India, with diverse business interests in various sectors. He is associated with several successful ventures, including Exide Batteries, Raheja QBE General Insurance, and the Outlook Publishing Group.
1. Exide Batteries: Rajan Raheja is associated with Exide Industries, a major player in the automotive and industrial battery market. Exide Batteries is a well-known brand in India, providing batteries for a wide range of vehicles, including cars, motorcycles, and commercial vehicles.
2. Raheja QBE General Insurance: Raheja QBE General Insurance is a joint venture between Rajan Raheja and Australia’s QBE Insurance. The company offers general insurance solutions to customers in India.
3. Outlook Publishing Group: Rajan Raheja is also involved with the Outlook Publishing Group, which is known for publishing the Outlook magazine, a prominent and widely read publication in India, covering various topics including politics, business, and lifestyle.
Additionally, the report mentions Hemendra Kothari, a veteran investment banker, and his involvement with DSP Investment Managers.
1. DSP Investment Managers: Hemendra Kothari heads DSP Investment Managers, a leading mutual fund company in India managing a substantial amount of assets totaling $15 billion. The firm offers a range of mutual fund products catering to different investor needs.
2. Partnership with BlackRock and Merrill Lynch: Hemendra Kothari co-founded DSP Investment Managers with BlackRock, a global asset management firm. Ten years after the founding, Kothari bought out BlackRock’s stake, gaining full ownership of the company. Additionally, Kothari partnered with Merrill Lynch, but later sold his majority stake in tranches between 2005 and 2009.
Both Rajan Raheja and Hemendra Kothari have made significant contributions to the Indian business landscape, with successful ventures and strategic partnerships in various sectors. Their accomplishments and influence have garnered attention and respect in the Indian business community.
Health and Glow, founded in 1997 and headquartered in Chennai, is a well-established beauty and personal care retailer in India. The company has grown significantly over the years and currently operates more than 175 stores in various Indian cities, including Bengaluru, Mangaluru, Pune, Mumbai, Cochin, Kolkata, Bhopal, Bhubaneshwar, and Hyderabad.
For the fiscal year 2022-2023 (FY23), Health and Glow reported sales of Rs 370 crore (approximately $49.6 million) and achieved a healthy 15 percent EBITDA margin. In the previous fiscal year (FY22), the company’s topline (total revenue) stood at $200 crore (approximately Rs 1,500 crore). Despite maintaining a topline of $200 crore for FY23, the company’s management expects to close the year with the same figure.
To further enhance its position in the market and cater to its customer base effectively, Health and Glow’s management has emphasized certain key areas:
1. Personalization: Health and Glow aims to provide personalized shopping experiences to its customers. This approach involves tailoring product recommendations and offerings based on individual preferences and buying patterns, which can lead to increased customer satisfaction and loyalty.
2. Omnichannel Presence: The company recognizes the significance of having a strong omnichannel presence in the retail space. By integrating its physical stores with online platforms, Health and Glow seeks to provide a seamless and convenient shopping experience for customers, allowing them to access products and services through multiple channels.
3. Innovation in Efficacious Products: Health and Glow places importance on offering innovative and effective beauty and personal care products. By curating a selection of high-quality and result-oriented items, the company aims to meet the evolving needs and demands of its discerning customer base.
The focus on personalization, omnichannel presence, and innovation reflects Health and Glow’s commitment to staying competitive and relevant in the dynamic beauty and personal care retail industry. By catering to consumer preferences and investing in technology-driven solutions, the company seeks to maintain its position as a leading retailer in the market and provide a compelling shopping experience to its customers.
The statement from the official highlights the challenges and opportunities that lie ahead for Health and Glow. While the company has a strong presence with over 175 physical stores in several Indian cities, the focus now is to transform it into a pan-India brand and expand its reach through omnichannel strategies. “Omnichannel” refers to the seamless integration of online and offline channels, allowing customers to access products and services through various touchpoints, such as physical stores, websites, and mobile apps.
Despite being a well-established player in the beauty and personal care retail space, Health and Glow faces stiff competition from newer, well-funded players like Nykaa. These companies have successfully dominated the market in recent years, leveraging digital platforms and aggressive marketing strategies to capture a significant share of the market.
The beauty and personal care market in India is experiencing rapid growth and is expected to reach $18.3 billion by 2023, according to Euromonitor International. With such substantial market potential, it becomes crucial for existing players like Health and Glow to adapt to changing consumer preferences and shopping behaviors. Many brands in the sector are being consolidated, and larger conglomerates are entering the market to capitalize on the growing demand.
To stay competitive and capitalize on the market growth, Health and Glow will need to invest in its online presence, digital marketing, and customer engagement initiatives. An omnichannel approach will enable the company to offer a seamless shopping experience to customers, regardless of whether they choose to shop in-store or online. By leveraging data analytics and personalization, Health and Glow can tailor product offerings to individual customer preferences, thus enhancing customer satisfaction and loyalty.
Successfully transforming into a pan-India brand with a strong omnichannel presence will be a strategic move for Health and Glow to navigate the evolving landscape of the beauty and personal care market in India. It will allow the company to reach a wider audience, tap into new customer segments, and solidify its position as a major player in the industry.
