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Retail India News: Avenue Supermarts Founder Radhakishan Damani Acquires Health and Glow
Retail tycoon Radhakishan Damani, the founder of Avenue Supermarts, has successfully acquired Health and Glow, a prominent beauty and personal care brand based in Bangalore, India. According to The Economic Times, the deal was finalized for an estimated amount of Rs 700-750 crore.
Damani, who boasts a substantial net worth of $15 billion as of April 4, 2023, has reportedly purchased the personal care retail chain from the family offices of Rajan Raheja and Hemendra Kothari. This strategic move marks Damani’s second major acquisition, following his purchase of Bombay Swadeshi Stores, the country’s oldest retailer, back in 2015, for Rs 42 crore. Bombay Swadeshi Stores was initially founded by renowned freedom fighters Bal Gangadhar Tilak, Mummohandas Ramji, and industrialist JRD Tata.
Health and Glow, established in 1997, made its debut with its first physical store in Chennai. Since then, it has expanded its reach, boasting over 175 stores scattered across various Indian cities, including Bengaluru, Mangaluru, Pune, Mumbai, Cochin, Kolkata, Bhopal, Bhubaneshwar, and Hyderabad, among others. During FY22, the company recorded a topline revenue of Rs 200 crore, and it is projected to close FY23 with an impressive sales figure of Rs 370 crore, maintaining a healthy 15 percent Ebitda margin.
The acquisition aligns well with the market trends, as India’s beauty and personal care market is anticipated to reach a staggering $18.3 billion by the end of 2023, as estimated by market research firm Euromonitor International. Damani’s entry into this segment puts him in competition with well-funded players like Nykaa, who have been dominant in the sector in recent times. The beauty and personal care segment is currently witnessing increasing consolidation of brands or larger conglomerates venturing into the market.
Recent financial performance reports from Avenue Supermarts Ltd, Damani’s flagship retail venture, show a modest 2.3 percent year-on-year rise in net profit for the quarter ending June, amounting to Rs 695.36 crore, despite an impressive double-digit growth in revenue.
In the same quarter, Avenue Supermarts recorded an 18 percent year-on-year increase in revenue, reaching Rs 11,584.40 crore. However, total expenses during Q1 FY24 surged 20 percent to Rs 10,700 crore, with employee costs rising 13.4 percent to Rs 178 crore compared to the previous year. The tax outgo for the quarter was Rs 236.32 crore, compared to Rs 230.2 crore in the same period last year.
Avenue Supermarts holds a prominent position as one of India’s largest food and grocery retailers. Over the years, the company has grown substantially, with 327 operating stores and a vast retail business area covering 13.5 million sq. ft across numerous Indian states, including Maharashtra, Gujarat, Daman, Andhra Pradesh, Karnataka, Telangana, Tamil Nadu, Madhya Pradesh, Rajasthan, NCR, Chhattisgarh, and Punjab, as of June 30, 2023.