VLCC set to acquire 'The Grooming Co.' of UAE

In context to the recent takeovers and joint ventures, another one adding to the list is the acquisition of UAE based chain of nail treatment salons, The Grooming Company (TGC) by the fitness centre giant VLCC. The acquisition is believed a worth of Rs 150 crore and would help VLCC to explore the lucrative grooming and styling market of the Middle East with its varied range of products and services.

At the moment VLCC operates 14 fitness centers in the UAE and the venture is expected to induct the company well into the hair and nail treatment category in the Middle East that contributes 40 per cent of overall revenues with a high rate of 12 per cent revenue growth in the grooming space expected from the region alone.

Negin Fattahi Dasmal, the man behind the origin of TGC, started the beauty chain in late 90's and now it owns high end brands in the grooming category. It's outlets like N-Bar - chain of nail treatment, 1847 - lounges for men grooming, JetSet - wash and blow dry hair care concept and Tilia and Finn - beauty lounges offering beauty and grooming services, have helped the company grow really well in this market.

From UAE's cosmetics and personal care market, TGC's products and services have raised the revenues of around $40 million and it's estimated to grow at the rate of 20 per cent a year estimating it to reach the $1 billion mark. As of now, human resources for TCG comprises of around 800 people spreading across UAE and Lebanon with plans to open stores in Kuwait and Qatar.

On the other hand, VLCC manages a chain of 225 fitness or slimming centres and day spas including across India including sales of personal care products and having a turn-over of Rs 500 crore. It plans to expose TGC's concepts to the Indian Market and launch minimum of 75 outlets in a span of next two year with an investment of around Rs 100 crore. It seems like a wise investment done by VLCC as it targets revenue of Rs 200 crore in India through this acquisition especially when the cosmetic industry is expected to grow by 25 per cent in a year.

The acquisition is said to be funded in phases through internal accruals and debt and is believed to be counseled by the research and advisory firm, Ernst and Young. There were no comments made available by both the VLCC and TGC executives regarding this development.