ENN Beauty, a natural skin and haircare brand acquired by the parent firm of SUGAR Cosmetics
The beauty and personal care business was valued at $16 billion in 2020, is predicted to increase at a rate of 12% per year to $28 billion by 2025
Vellvetter Lifestyle Pvt Ltd, the parent company of direct-to-consumer (D2C) beauty startup SUGAR Cosmetics, has acquired a majority share in ENN Beauty, a fast-growing natural skin and hair care brand, following a flurry of acquisitions in the market over the past year.
To harness a $20 billion market opportunity, firms like Nykaa, MyGlamm, and Purplle have been combining their product portfolios through acquisitions of diverse home-grown brands.
By popularising natural and straightforward beauty techniques, ENN Beauty claims to reinvent the ingredient-led skin and haircare market. Nandeeta Manchanda, the founder of ENN Beauty, will collaborate closely with Vineeta Singh and Kaushik Mukherjee, the co-founders of Vellvette Lifestyle Pvt. Ltd., which owns SUGAR Cosmetics, to expand the brand's online presence and reach the retail market. This partnership will also assist ENN Beauty in further improving and evolving its product line to appeal to Indian Millennials and Gen Zs, allowing it to reach a broader audience.
The beauty and personal care business was valued at $16 billion in 2020, according to the RedSeer analysis, and is predicted to increase at a rate of 12% per year to $28 billion by 2025. Over the last two years, the industry has seen an explosion in high-quality beauty and skincare products at a reasonable price, as well as increased exposure to social media trends, affluence among India's youth, and access to new-age brands, all of which have contributed to increased demand for both domestic and foreign brands.
"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. In today's day and age, consumers develop an affinity towards brands that not only sell a product to make them look beautiful, but also something that reflects their diverse personality and individuality. ENN Beauty has been on our radar for a while because of the exceptional work that Nandeeta 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," Vineeta Singh, CEO & Co-founder of SUGAR Cosmetics said,
With this partnership, ENN Beauty will be able to tap into a digital audience of more than 50 million beauty fans while it expands its retail presence to more than 100 locations by the end of the fiscal year. The team will also consider re-strategizing the average selling price of the brand product to make it more accessible and desirable to women in Tier 2 and Tier 3 markets.
"The partnership with Vellvette Lifestyle Pvt. Ltd., that owns SUGAR Cosmetics, is yet another step in our endeavour towards giving consumers access to the best in natural skin care. As India's own natural brand, ENN Beauty has always put 'YOU' and your health first and has offered products that are fun, safe, naturally sourced, and highly effective. 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. Our goal is to achieve this mark in the next two years and create products which are in harmony with 'YOU' and nature." Nandeeta Manchandaa, founder of ENN Beauty noted.