Sugar Cosmetics' parent company picks up majority stake in ENN Beauty

Deal value not disclosed. With it, ENN Beauty will be able to leverage a digital audience of over 50 mn as it ramps up its retail presence to over 100 outlets by next fiscal

Vellvette Lifestyle Pvt Ltd, the parent company of Sugar Cosmetics--one of the fastest-growing premium beauty brands--has signed an agreement to pick up the majority stake in fast-growing natural skin and hair care brand, ENN Beauty. The companies did not reveal the value of the transaction.

Over the past three years, ENN Beauty has redefined the ingredient-led skin and haircare category by popularising natural and simple beauty hacks in innovative textures and pigments. ENN Beauty’s founder, Nandeeta Manchanda will work closely with Vineeta Singh and Kaushik Mukherjee, co-founders of Vellvette Lifestyle Pvt Ltd, which owns Sugar Cosmetics, to accelerate the brand’s online presence and enter the retail industry. This association will also help ENN Beauty in further strengthening and evolving its product range to suit Indian millennials and Gen Zs, targeting a wider consumer group.

“Over the past decade, the beauty industry has evolved and undergone a sequence of changes owing to the close attention brands are now paying to the evolving needs of the consumer,” said Vineeta Singh, CEO and co-founder of Sugar Cosmetics. “ENN Beauty has been on our radar for a while because of the exceptional work that Nandeeta (Manchandaa)  has done in terms of product curation and innovation. With this new association, we plan to take her brand to a new high and make them an Indian household favourite. Our target for ENN Beauty will be to help deploy our playbook of scaling Sugar to grow ENN Beauty past the Rs 100 crore annualised sales mark even faster.”

Besides the onset of a pandemic, the Indian beauty industry has been growing rapidly. According to the RedSeer report, the beauty and personal care industry in 2020 was valued at $16 billion and expected to grow at a CAGR of 12 per cent to $28 billion by 2025. Just the past two years has witnessed an explosion in high-quality beauty and skincare products at a value-for-money range, higher exposure to social media trends and affluence among India's young. There is also accessibility to new-age brands that have helped expand demand for both local and foreign brands.

With this association, ENN Beauty will be able to leverage a digital audience of over 50 million beauty enthusiasts while it ramps up its retail presence to over 100 outlets by the next financial year. The team will also look at re-strategising on the brand product’s average selling point to make it more accessible and desirable to women from Tier-2 and 3 markets as well.

“The zest to reinvent age-old recipes and give it a modern twist along with Vellvette Lifestyle Pvt. Ltd., is a step towards endless possibilities,” said Nandeeta Manchandaa, Founder of ENN Beauty. “Our goal is to achieve this mark in the next two years and create products which are in harmony with ‘you’ and nature.”