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Renowned billionaire investor and founder of Avenue Supermarts, Radhakishan Damani, has made a significant move in the retail sector by acquiring the Bengaluru-based beauty and personal care retailer, Health and Glow, for an estimated sum of Rs 700-750 crore. The acquisition was reported by the Economic Times on July 21, marking a strategic expansion for Damani's retail empire.
Health and Glow, which was founded in 1997 and is headquartered in Chennai, currently operates more than 175 stores across major Indian cities, including Bengaluru, Mangaluru, Pune, Mumbai, Cochin, Kolkata, Bhopal, Bhubaneshwar, and Hyderabad. The company has been a prominent player in the beauty and personal care segment, boasting a sales figure of Rs 370 crore and a healthy 15 percent Ebitda margin for the fiscal year 2023. Impressively, its previous fiscal year saw a topline of $200 crore, and the company anticipates achieving a similar milestone for the current year.
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The strategic acquisition by Radhakishan Damani's team aims to leverage Health and Glow's existing brand presence and capitalize on the robust beauty and personal care market in India, which is projected to reach $18.3 billion by 2023, according to Euromonitor International. While newer and well-funded players like Nykaa have dominated the sector in recent years, the consolidation of brands and the entry of bigger conglomerates into the market have also been noteworthy trends.
The management of Health and Glow has expressed its commitment to focusing on personalization, expanding its omnichannel presence, and fostering innovation in efficacious products. However, the transformation into a pan-India brand and the transition to a more robust omnichannel model will pose challenges for the company, given its current primary reliance on physical stores.
This acquisition reflects Radhakishan Damani's strategic vision for expanding his retail portfolio and tapping into the flourishing beauty and personal care market in India. The deal showcases the potential for further growth and consolidation in the retail sector as major players seek to strengthen their positions in this lucrative industry.
(This news piece is based on information reported by the Economic Times and other sources)
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