Sirona Founders Near Deal to Buy Back Brand from Good Glamm
In a surprising turn of events, Sirona Hygiene founders Deep Bajaj and Mohit Bajaj are reportedly close to finalizing a deal to repurchase the women’s wellness brand from the Good Glamm Group. This development comes just a few months after Sirona was sold to Good Glamm in a deal valued at ₹725 crore. The buyback agreement, if successful, will see the Sirona founders assume debt liabilities of ₹160-180 crore.
The news of the potential deal was first reported by The Arc Web, citing reliable sources within the industry. According to the report, the founders are in the final stages of negotiations with Good Glamm to acquire the brand, which was valued at ₹725 crore when it was sold to the Good Glamm Group earlier this year.
The reasons behind the Sirona founders’ decision to buy back the brand are not entirely clear, but industry insiders suggest that it may be due to a combination of factors. One possibility is that the founders may have had second thoughts about the deal, possibly due to concerns over the group’s business strategy or the way the brand is being managed.
Another possibility is that the founders may be looking to regain control over the brand, which has a strong presence in the Indian market. Sirona Hygiene has built a reputation for its range of natural and organic personal care products, which have resonated well with Indian women. The brand’s unique selling proposition lies in its commitment to using natural ingredients and avoiding harsh chemicals, which has helped it stand out in a crowded market.
The Good Glamm Group, on the other hand, has been aggressively expanding its portfolio of brands in recent years. The group, which was founded by Priyanka Gill and Sanjiv Mehra, has acquired several brands, including The Moms Co, BabyChakra, and MyGlamm, among others. The group’s strategy is to build a portfolio of brands that cater to the needs of women and children, and Sirona Hygiene fits neatly into this strategy.
However, it’s worth noting that the Good Glamm Group has been facing some challenges in recent months. The group’s revenue growth has slowed down, and there have been reports of internal conflicts and resignations among top executives. It’s possible that the group may be looking to offload some of its non-core assets, including Sirona Hygiene, to focus on its core businesses.
The assumption of debt liabilities by the Sirona founders is likely to be a significant factor in the deal. The debt liabilities are estimated to be in the range of ₹160-180 crore, which is a significant amount. However, the founders may be willing to take on this debt as part of the deal in order to regain control over the brand.
The deal is still pending and is subject to several conditions, including regulatory approvals and due diligence. If the deal is successful, it will be a significant development in the Indian beauty and wellness industry, and will set a precedent for other brands looking to change ownership.
In conclusion, the news of the Sirona founders’ potential deal to buy back the brand from Good Glamm is a significant development in the Indian beauty and wellness industry. While the details of the deal are still emerging, it’s clear that the Sirona founders are willing to take on significant debt liabilities in order to regain control over the brand.
As the deal is still pending, it’s too early to predict the outcome. However, if the deal is successful, it will be a major win for the Sirona founders, who will regain control over the brand they founded. It will also be a significant development for the Good Glamm Group, which will be able to offload a non-core asset and focus on its core businesses.
