Cipla Health to acquire Ivia Beaute’s cosmetics, personal care distribution and marketing business for Rs 130 crore
Mumbai: Cipla Limited has announced that Cipla Health Limited, the
wholly owned subsidiary and consumer healthcare arm of the Company, has signed a
business transfer agreement (“BTA”) for purchase of the distribution and marketing
business undertaking of cosmetics and personal care business (“Undertaking”) of Ivia
Beaute Private Limited, India (“IVIA”) including IVIA’s brands namely Astaberry, Ikin and Bhimsaini on a worldwide basis.
On the cost of acquisition, Cipla said it will be “Rs 130 crore on the closing date and Rs 110 crore contingent upon achievement of certain financial parameters (milestones) for next 3 years as mentioned in the BTA”.
“This strategic move is aligned with Cipla’s focus on
enhancing its consumer healthcare and wellness portfolio.
Building on its strong presence through a cluster of brands in Tier 2-6 towns, CHL is
strengthening its play in the fast-growing beauty and personal care sector catering to
the aspirational consumer of India. The growing adoption of beauty and personal care
products in Indian households signals a prominent trend, positioning the market as crucial
for CHL’s expansion efforts,” the release stated.
With a brand legacy of over 16 years, Astaberry caters to
consumers through a wide range of unique products to help them address their skincare
needs. These brands complement CHL’s offerings in the skin care segment and enriches
the portfolio with solutions for consumers.
The transfer of “Undertaking” is subject to completion of certain conditions mentioned in
the BTA. Pursuant to completion of such conditions, CHL shall initiate the distribution and
marketing of the products.
Commenting on the development, Shivam Puri, Chief Executive Officer and Whole Time
Director of CHL said, “This move not only solidifies our presence in the expansive and
dynamic beauty and personal care sector but also builds on our well-established
footprint in Tier 2-6 cities. Our target consumer base is discerning and seeks variety,
especially when it comes to new brands in personal care. Integrating Astaberry, Ikin and Bhimsaini into our portfolio seamlessly complements our existing offerings across key
OTC/consumer healthcare categories, empowering us to deliver comprehensive
solutions that cater effectively to the diverse everyday needs of our consumers.”
CHL, through this acquisition, is well positioned to tap the beauty and personal care
category owing to its strong offline and online distribution muscle and a consumer insights
engine that has already helped create over 20 strong brands within the portfolio across
all key categories: Smoking Cessation (Nicotex), Cough and Cold Therapies (Cofsils and
Naselin), Pain Care (Omnigel), Analgesic (Paracip), Oral Rehydration Therapy/
Beverages (Prolyte), Vitamins, Minerals and Supplements (Maxirich), Topical Antiseptics
(Cipladine), Anti-fungal solutions (Clocip), Weight Gain (Endura Mass), Mother, Child and
Feminine Hygiene (Mamaxpert and Evexpert) and Skin and Hair Care (Cetafresh, Rivela
and Tugain). Most of these brands have attained leadership positions in their respective
categories.
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