New entity creation to acquire Sesa brand likely as part of raising capital to the tune of ₹ 400 crore.
Indian private equity firm True North Capital is in advanced rounds of discussion to acquire a majority stake in Ban Labs’ Sesa Hair Oil brand, as reported by LiveMint. Rajkot-based Ban Labs is an Ayurvedic, herbal and cosmetic products manufacturer.
With brands such as Sesa (hair care), Charm & Glow (cosmetics), Caley (soaps) and Dr’s Care (detergents), Ban Labs’ products portfolio targets domestic as well as international brands. Healthcare and Ayurveda products are also part of Ban Labs’ offerings. According to the new development, True North is likely to invest up to ₹ 400 crore for a majority stake in the Sesa hair care brand. This investment will be spun off into a new entity, as per the report.
The Sesa brand has a strong presence in Western and Northern India. Over the decades since the company’s inception in 1966, Ban Labs has branched out into brand extensions for Sesa such as shampoos, conditioners, gels, hair colours, and ayurvedic capsules. In addition to the Sesa hair care brand, Ban Labs’ portfolio features beauty, personal and home care products.
Ban Labs’ move is the latest instalment in ongoing consolidation trends within the Indian FMCG sector’s hair oil category players. Similar acquisitions include Hindustan Unilever’s earlier acquisition of the Indulekha hair oil brand and Emami buying out Kesh King. Such acquisitions have been due to intense competition from recent entrants such as Patanjali’s brands which rapidly acquired significant domestic market shares. Such threats along with slower growth of the Indian hair oil category has been a cause of concern for the existing incumbents.
Founded by chairman Dr DK Patel in 1966, BAN Labs focuses on extracting the best out of nature while working with life sciences. Its portfolio comprises several products in the areas of beauty care, personal care, hair care, home care, and healthcare and Ayurveda.