ChrysCapital to buy 10-12% stake in CavinKare: Sources

Chennai based CavinKare has sealed a deal with private equity player ChrysCapital to sell 10-12 percent stake in its fast moving consumer business for Rs 350 crore, reports CNBC-TV18, quoting sources.

CavinKare, which currently markets brands such as Chik Shampoo, Spinz Talco and Nyle is planning to use proceeds of stake sale to expand its product portfolio. The private equity infusion however will be limited to FMCG business only, sources said.

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CavinKare's food division sells popular products including Garden Namkeen, Ruchi Pickles and Maa fruit drinks.

CavinKare, a Rs 1,100-crore company, also has a beauty salon business called Trends in Vogue. The company has plans to increase the number of salons to 350 in next two years from current 110.

There has been lot of private equity activity in FMCG space recently. Last year, Singapore-based Temasek had invested Rs 685 crore to buy a five-percent stake in Godrej Consumer. GIC, another PE firm had invested Rs 500 crore to acquire stake in Marico.

According to some estimates. PE investments in the FMCG sector have grown by about 60 per cent in the last year, compared to 2011. Th year 2012 witnessed 22 deals worth USD 595 million against 24 deals worth USD 376 million in 2011.