Godrej Consumer acquires 30% stake in hair salon co

Written by fe Bureau | Mumbai | Updated: Oct 8 2013, 09:04am hrs
FMCG major Godrej Consumer Products (GCPL), the maker of Cinthol soaps, has acquired a 30% stake in Mumbai-based Bhabani Blunt Hair Dressing (B:blunt) for an undisclosed sum. Launched in 2005, B:blunt, a premium hair salon company today has a pan-India presence with 17 outlets and four academies.

B:Blunt is run by Adhuna Bhabani Akhtar and Osh Bhabani with some other investors holding minor stakes .

At present, GCPL's rivals Hindustan Unilever (Lakme), Marico (Kaya) and L'Oreal India have a strong presence in the beauty salon business in India.

Abneesh Roy, associate director - Institutional Equities - Research, Edelweiss Securities, said this is only a financial investment for GCPL for learning the salon business model.''GCPL will get a Board seat, which will help understand business better though management control will continue to remain with promoters. From a long-term perspective it will help grow the hair care brand to salons, he added

In 2011, GCPL had completed the acquisition of 51 % stake in African hair care company Darling Group Holdings. It also acquired South Africa's Kinky Group in 2008 and hair colour brand Rapidol in September 2006.