Bajaj Consumer Care Limited (BCCL) has successfully completed the acquisition of a 49% equity stake in Vishal Personal Care Private Limited, marking the first tranche of its planned 100% acquisition. The deal follows the signing of a Share Purchase and Shareholders Agreement (SPSHA) with Peepul Capital Fund III LLC and other stakeholders on February 14, 2025.
Vishal Personal Care, a leading personal care company, is renowned for its flagship brand, Banjara’s. Established in 1991, Banjara’s has built a strong presence in the natural hair and skincare segment across South India. The brand enjoys significant consumer trust and has demonstrated robust financial performance, with a 14% revenue compound annual growth rate (CAGR) over the past four years, high gross margins, and a debt-free balance sheet with positive cash flow.
Strategic Rationale Behind the Acquisition
In a conference call, representatives of Bajaj Consumer Care said that their acquisition aligns with the growing demand for natural Beauty and Personal Care (BPC) products. This segment accounts for approximately 40% of the total BPC market and is growing 1.5 times faster than the overall industry.
The deal is expected to significantly enhance BCCL’s market penetration, particularly in South India, where Banjara’s has an extensive distribution network spanning cosmetics stores, pharmacies, and grocery outlets across five states. Additionally, the acquisition will allow BCCL to leverage its existing distribution channels in the Hindi-speaking markets (HSM) to expand Banjara’s presence nationally.
Moreover, BCCL plans to utilise its expertise to introduce Banjara’s products into organised retail and international markets, where the brand currently has minimal presence. This move is expected to unlock new revenue streams and accelerate growth.
Deal Structure and Financials
The total acquisition cost is estimated at INR 120 crores, based on a pre-money enterprise valuation of INR 108 crores—equivalent to a 2x revenue multiple on a trailing 12-month (TTM) basis. The first tranche of 49% has now been acquired, with the remaining 51% stake expected to be acquired within the next 3-4 months, subject to the completion of closing conditions.
Bajaj Consumer Care’s leadership expressed enthusiasm about the acquisition, stating that the addition of Banjara’s to its portfolio strengthens the company’s foothold in the fast-growing natural personal care segment. “We are delighted to welcome Banjara’s into the BCCL family and are excited to unlock its next phase of growth,” a company spokesperson said.
This strategic move reinforces Bajaj Consumer Care’s commitment to expanding its presence in the Indian beauty and personal care market while capitalizing on the increasing consumer preference for natural and herbal products.
