Puig acquires majority stake in Indian brand Kama Ayurveda
Puig is continuing to add new names to its portfolio of brands. After taking over control of the Colombian natural cosmetics firm Loto del Sur last July, the Spanish group has announced the acquisition of a majority stake in Kama Ayurveda. Although the financial details of the transaction have not been disclosed, the Barcelona-based company has stressed that it represents a "key strategic opportunity" to strengthen its foothold in the Indian market.
Puig's interest in Kama Ayurveda dates back to 2019, when the family-owned company announced the acquisition of a minority stake in the company, just as it did at the time with the Colombian brand founded by Johana Sanint, Loto del Sur. As Puig said in a statement, the increased investment reflects its "commitment to a company and a market with vast growth opportunity in beauty and wellness products."
Founded in 2002, Kama Ayurveda is an ayurvedic brand that specializes in traditional Indian medical practices and is positioned in the beauty, wellness and personal care market segments. The firm currently has 54 stores in India and expects to close the year with more than 60 stores.
Building on the brand’s success in India, Puig intends to support the brand in its journey to global expansion. Kama Ayurveda is already planning on landing in the UK at the beginning of 2023. In parallel, the Spanish company will offer the Indian brand its expertise in brand building, skin care technology and perfumery.
"India represents an incredibly exciting opportunity for Puig, and with this investment we will continue our strategy of consolidating Kama Ayurveda's strong domestic presence," said president and CEO Marc Puig in a statement.
Vivek Sahni, CEO and co-founder of the Indian brand, added: "By leveraging the wealth of Puig's experience in nurturing founders and growing global beauty and skincare brands, together we will bring the experience of authentic Ayurvedic beauty and wellness to new audiences.”
This strategic move is in line with other recent acquisitions by the Puig group, which has recently set out to strengthen its portfolio and diversify its product offering. In addition to its investment in Loto del Sur, the company acquired a majority stake in the Swedish luxury cosmetics firm Byredo last May. According to industry sources, the transaction is said to have amounted to 1 billion euros. Likewise, in September 2021, the company also acquired the Chinese perfume brand Scent Library; and in 2020, the British make-up brand Charlotte Tilbury was taken over by the Puig family for a sum that was also reportedly worth 1 billion euros.
The Spanish company boasts a well-rounded portfolio of brands in both fashion, with brands such as Paco Rabanne and Dries Van Noten, and in the fragrance, makeup and dermo-cosmetics categories, with Uriage and Apivita. In addition, the company also owns licenses for brands such as Christian Louboutin and Comme des Garçons Parfums, as well as for lifestyle fragrances such as Adolfo Dominguez, Antonio Banderas, Shakira and Benetton.
Present in 150 countries, Puig closed 2021 with a 27% increase in turnover compared to 2019 to €2.58 billion. Looking ahead to the current financial year, the company expects to achieve sales of €3 billion and the Ebitda to reach €500 million.
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