Blackstone acquires 33 % stake in specialty fragrance maker SH Kelkar for Rs243 crore
03 Sep 2012
US private equity firm Blackstone Group LP has acquired a 33-per cent stake in SH Kelkar & Company, a maker of specialty fragrance and flavour ingredients used by consumer goods companies, for Rs243 crore ($43.69 million).
The New York-based PE giant, which has invested $2.5 across 20 Indian companies, will get two board seats for its investment in the more than 80 year-old company.
The deal values the Mumbai-based company that has clients like ITC, Emami and Marico, at Rs736 crore.
The Vaze family, which had acquired co-founder Kelkar family's stake in the company in 2010, will continue to hold a 65 per cent in the company while the remaining 2 per cent will be held by minority investors.
"SHK has unique intellectual property and a strong market presence for over eight decades. We foresee a huge growth opportunity for SHK, both in the domestic and other emerging markets, driven by the growth in personal consumption in India, Africa and South-east Asia," said Akhil Gupta, senior managing director and chairman at Blackstone India.
SH Kelkar & Co is India's largest fragrance and flavour company with a annual turnover of Rs640 crore.
With a workforce of around 750 people, the Kelkar Group covers over 50 countries in South East Asia, China, Japan, Indian sub continent, Middle East, Africa and Europe. Its exports account for around 45 per cent of the Group's turnover.
The company has three manufacturing units - two in India and one in the Netherlands - and R&D centres in Mumbai, Bangalore, the Netherlands and Indonesia.
