ChrysCap buys 14% in CavinKare for Rs 250 crore

CHENNAI: Private equity firm ChrysCapital has picked up 14% in Chennai based consumer goods company Cavin Kare for Rs 250 crore. The Rs 1,100-crore CavinKare, maker of Chik and Nyle shampoos, said the funds would be used to strengthen and expand its existing brand portfolio spanning shampoos, fairness cream, hair colours, deodorants, dairy items, snacks, foods and beverages.


“The major chunk of the money would be invested in personal care and diary business,” CK Ranganathan, CMD of Cavin-Kare told ET. “Our objective is to rapidly grow the company’s brand portfolio few notches upwards across different markets. In ChrysCapital, we have found a partner who shares similar values and vision,” he said in a statement.

In February, ET had reported that CavinKare, that pioneered the clutter-breaking idea of selling shampoo in sachets in the early 1980s, was in talks with private equity firms ChrysCapital, Everstone Capital and others to sell a minority stake of about 10-12%. CavinKare has a turnover of over Rs1,200 crore as of fiscal 2013.

The company was founded as Chik India in 1983 when CK Ranganathan started it as a singleproduct company with Rs15,000 as seed capital in a small town in Tamil Nadu.