MUMBAI: VLCC, health, beauty and personal care products player, has announced that it has received an investment of Rs. 500 million from Indivision India Partners, a private equity fund promoted by Future Capital Holdings, the financial services arm of the Future Group..

An official statement says that the investment would be made in VLCC Health Care Limited, which manages the VLCC brand of businesses spanning a chain of slimming, beauty and fitness centers, manufacturing and marketing of personal care products and management of educational institutes for beauty and health.
The investment is structured in the form of a convertible debenture and the proceeds will largely be used to fund the expansion of new VLCC centers both in India and overseas.

In addition, the funds will also be utilized in growing the company's subsidiary, VLCC Personal Care Ltd., engaged in manufacturing and marketing ayurvedic/herbal personal-care products.

VLCC Health Care Ltd., chairman and managing director Mukesh Luthra said, "We plan to be a 300 centre strong company in the next three years, with a significant presence in international markets. Also on the cards by 2010 is a Rs.10 billion turnover.

Another area where the investment would play a key role is in building VLCC Personal Care Ltd. into a leading player in the
personal care products segment. Overall, this investment would help us achieve faster growth and strengthen our efforts to further consolidate our leadership position, for in addition to investing into the company; Indivision shall add considerable strategic value to the business. We are indeed pleased to have them as our investment partner."

"There has been a growing trend towards increased consumer spend on personal grooming, health and wellness products and services." said Future Capital Holdings CEO and managing director Sameer Sain. "The value-add from the Future Group and the Indivision team will enable VLCC to accelerate its growth and continue to dominate this category."

Luthra added, "The Indivision investment represents the second round of funding that the VLCC Group has received, the earlier one being in 2004 when US$ 10 million were invested by CLSA, the Asian investment banking arm of Crédit Agricole."

VLCC currently has nearly a 100 centers in 55 cities across India and the UAE. It also has 10 VLCC Institutes in seven cities that provide diploma courses in beauty and nutrition to over 2,500 students a year.