VLCC in final stage to buy WellScience Health
NEW DELHI: Wellness services and personal-care firm VLCC is in the final phase of talks to buy direct-selling dietary-supplements and nutraceuticals maker WellScience Health for an undisclosed amount, two officials directly aware of the development told ET.
WellScience is promoted by Lajinder Bawa, the former CEO of the Indian arm of Swedish cosmetics maker Oriflame. He was also the first chief of Oriflame when it entered India in 1995.
“The acquisition process has moved to the final due diligence stage, and a formal announcement is expected soon,” said one of the two officials quoted above. A VLCC spokesperson declined to divulge details on the development. Bawa, founder and managing director of WellScience, could not be reached for his comments.
An Assocham-RNCOS report has forecast that the fast moving healthcare segment would be valued at $ 6.1 billion by 2020, expanding at 17 per cent a year. The segment includes nutraceuticals, dietary supplements, and functional and fortified foods. “The move is in line with VLCC’s plan to accelerate its products business. The firm is looking at emerging categories within the fast-moving healthcare products space, and the new acquisition would be a natural extension for its personal care business,” one of the officials mentioned above said.WellScience has an existing network of 25,000-30,000 members and is focused primarily in the North and East.
“Until now, funding was the bottleneck for WellScience’s bid to scale and VLCC can address that. For VLCC, it would give it a ready foothold in the direct selling network and it could also be used to sell its own products ,” one of the officials mentioned earlier said.
WellScience is promoted by Lajinder Bawa, the former CEO of the Indian arm of Swedish cosmetics maker Oriflame. He was also the first chief of Oriflame when it entered India in 1995.
“The acquisition process has moved to the final due diligence stage, and a formal announcement is expected soon,” said one of the two officials quoted above. A VLCC spokesperson declined to divulge details on the development. Bawa, founder and managing director of WellScience, could not be reached for his comments.
An Assocham-RNCOS report has forecast that the fast moving healthcare segment would be valued at $ 6.1 billion by 2020, expanding at 17 per cent a year. The segment includes nutraceuticals, dietary supplements, and functional and fortified foods. “The move is in line with VLCC’s plan to accelerate its products business. The firm is looking at emerging categories within the fast-moving healthcare products space, and the new acquisition would be a natural extension for its personal care business,” one of the officials mentioned above said.WellScience has an existing network of 25,000-30,000 members and is focused primarily in the North and East.
“Until now, funding was the bottleneck for WellScience’s bid to scale and VLCC can address that. For VLCC, it would give it a ready foothold in the direct selling network and it could also be used to sell its own products ,” one of the officials mentioned earlier said.
