Korean PE VIG Partners soaks up shampoo brand Kundal’s growth

South Korean private equity firm VIG Partners is enjoying rapid growth of The Skinfactory Co., the maker of local shampoo and body wash brand Kundal that has entered more than 50 markets globally.     

On the back of increasing sales of Kundal products, The Skinfactory will post 130.2 billion won ($101 million) in revenue and 16.8 billion won in operating profit this year — each up more than 50% on-year, according to industry sources on Sunday.

The Seoul-based PE acquired a 100% stake in the shampoo maker for about 200 billion won in May 2021. The deal was a surprise as the domestic personal care market was dominated at the time by conglomerates like LG H&H Co. and Aekyung Industrial Co.

Since the acquisition by VIG, Kundal has boosted sales by expanding the product lineup and promoting its natural ingredients and competitive prices for consumers who prefer niche brands.

Among its main products are shampoos, body scrubs, perfume diffusers and fabric deodorizers that use extracts from honey, teas and macadamia. Its shampoos typically cost 10,000 won per 500 milliliters.

Kundal products are sold on major online shopping websites like Amazon and Rakuten as well as brick-and-mortar stores in Malaysia, Indonesia, Taiwan and Singapore. VIG forecasts that Kundal’s overseas sales to exceed 40% of total revenue this year, compared with 15% in 2021.

To further expand its global sales, Kundal in February tapped K-pop boyband Tomorrow X Together as brand ambassador to strengthen its marketing strategy in Southeast Asia.

In January, The Skinfactory acquired a 100% stake in Abill Korea, the owner of local skincare brand Nacific, for an undisclosed price. Nacific’s core product Fresh Herb Origin Serum, a facial skincare item with plant-based ingredients, is enlarging its presence in Southeast Asia and Latin America. 

Write to Jeong-Cheol Bae at bjc@hankyung.com
Jihyun Kim edited this article.