Stating that the company has been valued at $3 billion, Jain told ET: “We are in the process of consolidating and streamlining operations and group entities in preparation of our IPO. We are talking to three-four bankers including ICICI, Kotak, Motilal Oswal and IIFL for the process,” she said.
While the privately-held Biotique has been actively pursued by private equity players for stake buy-outs, so far, it has resisted any stake sale.
“We remain debt-free; the reason for the 10% dilution and public listing is to continue the longevity of the company. An IPO is the way to do that and we have started the process,” Jain, also chairperson of Biotique, said.
She added that the company will deploy the capital raised into research and development of new products in the beauty and personal care space, adding distribution within India and expanding internationally as well as being a house of brands.
Jain founded Biotique in 1992 and makes a range of natural and ayurvedic products for skin and hair, make-up and babies.The development comes amid a booming beauty market, which is being fuelled by dozens of Indian brands attracting high investor interest, global brands making a beeline for a billion dollar opportunity including new entrants H&M Beauty and Sephora which has been tying up with global celebrity-owned labels such as Rihanna’s Fenty Beauty and Rare by Selena Gomez, clean beauty brands as well as D2C labels. In addition, dedicated beauty platforms such as Nykaa, Reliance-backed Tira and Shoppers Stop Beauty, as well as multi-category marketplaces such as Amazon and Myntra are reporting double-digit growth of beauty and wellness products.”Despite there being competition now from diverse players, ayurvedic science-backed brands continue to hold a high premium among consumers-in India as well as in international markets,” Jain said.
Biotique, which introduced the concept of premium packaged ayurvedic science-based beauty products, is owned almost entirely by Jain. Parent company Bio Veda Action Research counts health and wellness products made of organically grown, preservative-free natural botanical extracts, as its core differentiating factor. The company has more relied on word of mouth and its eponymous brand over heavy marketing, and instead focused on tactical advertising.
Last year, it roped in actress Sara Ali Khan as face of the brand.
A Nykaa-Redseer Beauty Trends report on the beauty and personal care market said India is now the fastest-growing beauty market in the world. The report estimates that India’s BPC market will touch $34 billion in sales by 2028, from $20 billion in 2024, at a growth rate of 10-11%. In contrast, the report projected the China market to grow 4-5%, the US (2-4%) and Japanese market to grow 2-3% in the same period.
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