Everstone front runner for stake in JK Helene Curtis

The deal size will be Rs 150-160 cr for a 20-25% stake

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The stake dilution process of JK Helene Curtis Ltd, the personal grooming and toiletries business arm of the Raymond Group, is in the final stage. According to people in the know, Everstone Capital, a leading private equity (PE) firm with India-focused investments, is a front runner to acquire a significant minority stake in the company. The deal size will be Rs 150-160 crore for a 20-25 per cent stake, sources said.

The major brands of JK Helene Curtis include Park Avenue range of fragrances, body care solutions, shaving systems and hair care solutions, Premium range of room fresheners, and Eau de Cologne and Raymond range of fragrances. The Premium range will soon introduce car fresheners and an innovative refrigerator freshener called Smell Well.

The overall branded personal care product market size in India is estimated at about $7 billion and growing at 10-15 per cent. Lincoln International is advising JK Helene Curtis in its fund-raising process.

Email questionnaires sent to Raymond and Everstone Capital did not elicit any response.

Pragya Singh of retail consultancy Technopak said, "Male grooming is one of the fastest-growing segments of personal care market. Traditionally, men's brands have largely focused on the shaving category only. Other categories have received increased attention only over the past few years. The male grooming habits have also undergone a significant change in the past decade with urban men becoming more 'grooming conscious' and indulging in products targeted at them."

JK Helene Curtis has worked on expanding its product portfolio by launching shave balm and beer shampoo. "There is significant room to leverage the Park Avenue and Raymond brands in the male grooming space," said Singh.

With assets under management of $2 billion, Everstone owns a stake in Faces Cosmetics, a Canada-based marketer of colour cosmetics and skin-care products, and R&R Salons Private Limited, a Bangalore-based chain of women-only salons under the YLG (You Look Great) brand.

Raymond, promoted by industrialist Gautam Singhania, is taking various initiatives to reduces its debt worth Rs 1,500 crore.

As reported by Business Standard last year, Raymond also plans to offload a minority stake in its engineering subsidiary JK Files, one of the largest producers of files in the world with a 30 per cent global market share in cutting and precision tools business.

The Rs 5,000-crore company also plans to encash its land property in Thane, Mumbai and is in discussions with developers for a sale or joint development. It expects a valuation of Rs 1,500-1,800 crore for the land.