Emami announced a startegic investment in Brillare Science Private Limited (BSPL) embarking its entry into the growing professional salon segment. As per the deal, Emami would subscribe to (a) compulsory convertible preference shares (CCPS) in two tranches, which on conversion will result in 26% equity stake in BSPL on a fully diluted basis and (b) equity shares equivalent to 0.02% of the issued and paid up equity share capital. The deal will be done in cash and at mutually agreed price (not disclosed).
Emami subscribed to 100 equity shares (0.02%) in the company today and 1,13,887 CCPS in the first tranche and balance 1,13,986 CCPS will be subscribed by in the second tranche. Conversion of all the CCPS held by Emami into equity shares will result in 26% stake in BSPL.
BSPL is engaged into hair and skin beauty products (with pure natural ingredients), which are currently sold in and through the professional salons. Company operates under three brands – (a) Brillare Science (normal beauty care range for home use), (b) Elementi Puro (personalized hair & skin care) and (c) Root Deep (hair care products). BSPL reported Rs13cr of revenue in FY17, Rs5.8cr in FY16 and Rs3.6cr in FY15.
With rising disposable income, both men and women are spending a part of their earnings on grooming sessions, which provides a huge opportunity for the company. Thus, the investment in BSPL is in-line with the company's strategy of exploring professional personal care segment through channels like hi-end salons with potential of becoming one of the key channels in the future.
Emami Ltd is currently trading at Rs1095, down by Rs 8.65 or 0.78% from its previous closing of Rs1103.65 on the BSE.