Portfolio Focus: VLCC Healthcare Everstone Capital Investee Co
VLCC Healthcare offers beauty, slimming, fitness and health services. VLCC operates slimming centers and spas, it also retails personal care products through it's wellness chain.
In 2004, the company raised $10 Mn from Shine Limited (Shine Limited, Mauritius is a SPV of CLSA Private Equity Management Ltd) for 13.65% stake in the company, which was recently bought back by the promoters for an undisclosed amount.
The group also has investments from Indivision India Partners, Mauritius (managed by Everstone Capital) to the tune of R50Cr.
VLCC Healthcare has operations in over 260 locations across 109 cities in nine countries, including the UAE, Oman, Bahrain, Qatar, Kuwait, India, Sri Lanka, Bangladesh and Nepal. VLCC currently employs nearly 6000 professionals. VLCC also runs a training institute which provides training in the areas of nutrition and beauty care for students seeking professional skills in these domains.
In 2007, the company issued 50 lakhs debentures of R100 each aggregating to R50Cr which were compulsory convertible into equity shares of the company to Indivision India. In March 2011, the company allotted 341132 equity shares of R10 each at a premium of R1455.71 per share to Indivision India Partners giving them 15.11% stake on post conversion.
Performance Of VLCC Health Care
| (Rs Mn) | 2010 | 2009 | 2008 |
| Sales | 2177.38 | 2045.3 | 1841 |
| EBITDA | 343.07 | 275.34 | |
| PAT | 118.65 | 70.12 | 100.12 |
| Share Capital | 372.61 | 369.63 | 369.63 |
| Reserves | 458.46 | 222.48 | 185.53 |
| Total Debt | 822.46 | 939.5 | 690.94 |
In July 2011, VLCC Health was in advanced talks to buy a European nutraceuticals and skincare firm and a South-East Asian wellness company.
The company was also planning to raise R100Cr through IPO for expansion and to fund acquisitions. VLCC was also going to acquire UAE's The Grooming Company for R150Cr.
The only listed company in this space is Birla Pacific Medspa, part of Yash Birla Group. Birla Pacific raised Rs.65.17 Cr through IPO. Birla Medspa under the brand name EVOLVE, runs wellness centers in three vertical of dermatology, dentistry and cosmetic surgery.
Performance of Birla Pacific Medspa
Jawed Habib Hair and Beauty Limited was also planning to raise Rs.60 Cr through IPO and has filed DRHP with SEBI for the same. It offers hair and beauty care services under two different salon brands viz. Jawed Habib Hair & Beauty and Jawed Habib HairXpreso.
The existing large unlisted competitors in the industry are primarily Indian players like Shanaz Hussain, Lakme Beauty Salon, among others.
Indivision India Partners (IIP) is a $425Mn Mauritius-based fund that focuses on growth capital private equity investments. IIP is managed by Everstone Capital, Mauritius, which is in turn advised by Everstone Capital Advisors Pvt Ltd a company based in India.
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