Lotus Herbals hunts for personal care acquisitions
today Apr 15, 2019
Cosmetics and personal care brand Lotus Herbals is started to look for possible acquisitions, especially in the personal care sector. The business is open to selling a small stake in its own business to raise funds for the venture.
“We are open to mid-sized acquisitions now and are approaching investment bankers,” the business’ joint managing director Nitin Passi told the Economic Times. “We’ve just started the process and have an inorganic strategic plan for mid-sized acquisitions, which could be in India or overseas, as long as it contributes tangible value to our business.”
The New Delhi-based business is not prepared to sell out at this point but it could consider selling a minority stake in its business or raising funds through a private equity investor. “If we are not able to raise enough funds through internal accruals to acquire a target company, we will opt for a private equity investor or dilute 10 to 15 percent stake in the company,” said Passi.
Lotus Herbals is currently expanding its natural beauty offerings to tap into the sector’s rising popularity in the Indian market. To this end, it has been looking at several mid-sized natural beauty brands. Passi did not name the brands but stated that his business could “double their numbers in two years.”
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