According to The Economic Times on Friday, Health and Glow, a Bangalore-based cosmetics and personal care business, has been purchased by Radhakishan Damani, the founder of Avenue Supermarts, for between Rs 700 and 750 crore.
A brief about Radhakishan Damani of D-Mart purchases Bangalore-based Health & Glow for Rs. 750 cr
According to reports, Damani purchased the personal care store chain from Rajan Raheja and Hemendra Kothari’s family offices for $15 billion as of April 4, 2023. This is Damani’s second significant acquisition following the purchase of Bombay Swadeshi Stores in 2015 for Rs 42 crore, the nation’s oldest retailer and the brainchild of freedom fighters Bal Gangadhar Tilak, Mummohandas Ramji, and businessman JRD Tata.
The first physical location of Health and Glow, which was established in 1997, was established in Chennai. Since then, more than 175 venues have been added throughout Indian cities, including Bengaluru, Mangaluru, Pune, Mumbai, Cochin, Kolkata, Bhopal, Bhubaneshwar, and Hyderabad, among others. The company generated Rs 200 crore in revenue in FY22, and it is anticipated that it would end FY23 with Rs 370 crore in revenue and a 15% Ebitda margin.
By the end of 2023, the Indian market for cosmetics and personal care products is anticipated to reach $18.3 billion, according to market research firm Euromonitor International. Damani’s arrival into the market will compete with well-funded firms like Nykaa, who have recently dominated the market. Recently, the segment has seen a rise in brand consolidation and the entry of larger corporations.
Despite a double-digit increase in revenue, Avenue Supermarts Ltd. stated last week that its net profit for the quarter ended in June rose just 2.3% year over year (YoY) to Rs 695.36 crore.
The operator of the hypermarket chain recorded an 18% YoY increase in quarterly revenue to Rs 11,584.40 crore.
Avenue Supermarts’ overall expenses for the first quarter of FY24 increased 20% year over year to Rs 10,700 crore. To reach Rs 178 crore, employee costs increased 13.4% year over year. In comparison to Rs 230.2 crore one year prior, the tax outlay for the quarter was Rs 236.32 crore.
One of India’s biggest food and grocery retailers is Avenue Supermarts. To open its initial ten stores, DMart needed eight years.
As of June 30, 2023, the firm had 327 active stores with 13.5 million square feet of retail space throughout Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh, and Punjab.
