Mumbai: Honasa Consumer Ltd, the holding company of Mamaearth, The Derma Co., Aqualogica, and Dr. Sheth’s, continues to have the appetite and capital for fresh acquisitions, said Varun Alagh, co-founder, chairman & chief executive officer.
The company may expand in fragrances and feminine hygiene categories going ahead to capture the wider growing beauty and personal care market, Alagh told Mint.
“The fact that we have launched and built four brands and acquired two, our first objective is to always see we can craft and launch a brand,” he said.
“If we don’t find the capability required to do it or the gestation period of building (a brand) is too long, and hence, buying is better, that is when we look at buying.”
While the company has “no acquisition targets” on the table currently, Alagh said, “We are still not in some other spaces—like fragrances, we are not present in feminine hygiene. Some of those spaces remain strategically open for the company.”
“We just entered the colored cosmetics space which is a new space for us, and we are going to sort of scale our play in that space,” Alagh said.
Consolidating presence
Apart from building its own brands, Honasa has acquired a few firms to consolidate its presence in the beauty and personal care market.
Last week, the company announced the acquisition of CosmoGenesis Labs—a business-to-business enterprise that makes formulations for beauty and personal care companies for ₹4 crore.
As part of the transaction, Honasa will acquire, apart from formulation expertise, the R&D labs as well as CosmoGenesis’ nano-manufacturing facility.
“This is something that further strengthens our ability to innovate and bring the right kind of products to the consumers. Rohini Manoj (founder) will be joining us as vice president of research and development. This deal is likely to be closed in the next four to six weeks,” Alagh said during the company’s post-earnings call Thursday.
In February 2022, Honasa acquired BBlunt, a hair care, hair color and styling products brand from Godrej Consumer Products Limited (GCPL), while also acquiring BBlunt salons operated by Bhabani Blunt Hair Dressing Pvt. Ltd.
In May of that year, the company acquired a majority stake in skincare brand maker Dr. Sheth’s. More recently, Honasa completed its acquisition of Dr. Sheth’s, by acquiring the remaining 34.51% stake for Rs30 crore.
Honasa sells beauty and personal care products under seven brands. The company has a portfolio of digital-first consumer brands like Mamaearth, The Derma Co., Aqualogica, Ayuga and Staze. Apart from the owned brand, it has acquired stakes in BBlunt and Dr. Sheths.
India’s beauty and personal care (BPC) market is projected to touch $30 billion by 2027, consulting firm Redseer said in a September report.
On per capita BPC spending, while the US leads at $313, and China at $38, India lags significantly at just $14. Online is a significant channel for BPC in India as it is projected to become a $10 billion market by 2027, accounting for roughly 33% of the market then, according to the report.
For the full fiscal year 2024, Honasa reported a profit of Rs111.7 crore against a previous loss of Rs142.8 crore, with operating revenue rising 28% to Rs1,919.9 crore.
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Published: 28 May 2024, 10:46 AM IST
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