Emami Limited, one of the leading fast moving consumer goods companies (FMCG) in India, on Monday said it has agreed to make a strategic investment in Brillare Science that owns a premium hair and skin care portfolio for use in professional salons.
"The company has agreed to make a strategic investment in Brillare Science by subscribing to compulsory convertible preference shares in two tranches, which on conversion will result in 26 per cent equity stake in the investee company (Brillare) on a fully diluted basis (based on the achievement of agreed future performance of the investee company)..." the FMCG company said in a regulatory filing.
This arrangement is significant as it marks Kolkata-based company's entry into the growing professional salon channel or segment.
Brillare offers premium hair and skin beauty products used and sold by experts in professional salons.
"The investment in Brillare is in line with the company's strategy of exploring professional personal care segment through channels like hi-end salons that have the potential to become one of the key channels in the future that requires different capability, expertise and relevant products," Emami Director Harsha Vardhan Agarwal said.
With the rise in disposable income, both men and women were spending a handsome part of their earnings on their grooming sessions in spas and salons, the company said in a statement.
"This trend to appear well-groomed has led to the growth of the professional spa and salon industry," it added.
--IANS
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