Puig invests in Colombia’s Loto del Sur and India’s Kama Ayurveda
today Mar 12, 2019
Barcelona-based fashion and beauty group Puig has announced two major deals. In a strategic move designed to strengthen its international operations, Puig has announced the acquisition of two minority stakes in Colombian premium beauty company Loto del Sur and Indian company Kama Ayurveda. The latter will help Puig enter the Indian market in collaboration with a local firm, which specialises in plant-based Ayurvedic products and personal care products.
“Our company’s expertise in fine perfumery and long experience in global markets will help Loto del Sur realise its ambitions for growth. Puig is already a strong industry presence in Latin America, and with today’s agreement, we further bolster our position in the region,” said Marc Puig, chairman and CEO of the company.
Puig did not provide financial details of the investment, but it said it has the option to further increase its stake in the coming years as part of a long-term partnership agreement. Puig wants to drive growth at the firm founded by Johana Sanint in 1999. A leading brand in the Colombian market, the Loto del Sur sells personal care products, cosmetics and fragrances made from locally sourced ingredients.
“Puig’s knowledge of this industry, combined with our shared entrepreneurial spirit, the passion we both feel for what we do and our long-term vision will enable us to maximise the potential of Loto del Sur. I could have never imagined a better partner to bring the richness, the exuberance and the glamour of Latin America to the world,” added Loto del Sur founder Johana Sanint, who will continue to act as brand president.
Currently, Loto del Sur sells its products through an online store and at eight standalone stores in Colombia. It plans to open four further stores this year.
Additionally, Puig announced on Tuesday 12 March its entry into the emerging market of India through the acquisition of a minority stake in Kama Ayurveda, a leading Ayurvedic brand of beauty and personal care products. As part of the agreement, Puig will invest INR 100 crore (12.5 million euros) in the business to help drive its domestic and international expansion.
Puig will also have the option to increase its investment in the business in the future. “This long-term alliance gives us the ability to further develop our focus on retail business worldwide and also to be present in a market with tremendous potential for beauty and personal care, as well as fragrances,” said Marc Puig, chairman and chief executive of Puig, adding that the partnership will “enable us to offer Kama Ayurveda’s authentic Ayurvedic, plant-based, beauty and personal care products to a wide audience, a perspective that is in keeping with our commitment to sustainable, responsible business models.”
Founded in 2002 by Vivek Sahni, Dave Chang, Rajshree Pathy and Vikram Goyal, Kama Ayurveda has currently 52 stores and concessions in India, as well as a strong online presence. The eco premium firm said it is looking forward to Puig’s “strategic support and guidance for our next phase of growth, as we, too, become a global brand,” said co-founder and CEO Vivek Sahni. Over the last five years, Kama Ayurveda has received a boost led by India 2020 Fund II, which is affiliated with private equity firm Lighthouse Advisors.
Puig is a third-generation family-owned fashion and fragrance business. In 2017, the company reported revenues of 1.93 million euros. Its portfolio of brands includes a combination of owned brands such as Carolina Herrera, Nina Ricci, Paco Rabanne, Jean Paul Gaultier, Penhaligon’s and L’Artisan Parfumeur; licenses such as Prada, Christian Louboutin and Comme des Garçons; and Lifestyle fragrances. The products are sold in over 150 countries.
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