Fund managed and/or advised by Motilal Oswal Private Equity
invests in N. Ranga Rao & Sons Private Limited
Mysuru, 9th April, 2018: Motilal Oswal Private Equity through its third private equity fund, India Business Excellence Fund – III, has invested an undisclosed amount for a minority stake in N. Ranga Rao & Sons Private Limited (“NRRS”), a Mysuru based company, engaged in the business of manufacturing and marketing of Agarbathies, puja products, lifestyle and functional air-care products. This is the first time the Company has raised private equity capital.
Established in 1948, NRRS is part of NR Group, a Mysuru based family business conglomerate. NRRS is the largest Agarbathi company in India and has maintained its leadership position in the category for several decades. The products are marketed under different brands such as Cycle Pure Agarbathies, Om Shanthi (Puja Products), Lia (Agarbathies, room fresheners and car fresheners), Stop-O (Odour fighters) and IRIS (Lifestyle home fragrances). The Company has a strong pan-India sales and distribution, with a network reaching close to 1.5 million retail outlets.
Mr. Arjun Ranga, Managing Director of NRRS says, “As a 70 year old family business into the third generation, we are deep rooted in our values and traditions. We strongly believe in collaborative and ethical growth and in always delivering value for money to our customers. Building on our strengths in fragrance creation and distribution, we have now become a multi-product company by foraying into air care and puja products. In this natural progression, we are pleased to partner with MOPE. We strongly believe that MOPE is the best partner for us as we are aligned in our values and ethos.”
Mr. Vishal Tulsyan, Managing Director and CEO of MOPE commented, “Our economy is seeing a paradigm shift from unorganized to organized sector leading to a booming economy of $5 trillion in the coming years. We, at Motilal Oswal Private Equity, have always been focused on growing sectors and consumer sector being one of the drivers of the economy, we are pleased to announce our partnership with the largest Agarbathi company in the country. Agarbathi as a product touches almost every Indian household and the brand “Cycle” has increasingly been synonymous with Agarbathies for the past seven decades. Despite the largely unorganized nature of the business, NRRS’ focus on branding, quality, owned sales & distribution network along with an emphasis on continuous innovation has made it a market leader which is almost double the size of its next competitor. Through this partnership with NRRS, we intend to help create a very large, differentiated leader in India’s Agarbathi and fragrance industry”.
About Motilal Oswal Private Equity
MOPE Investment Advisors Private Limited (MOPE) is a subsidiary of Motilal Oswal Financial Services Limited (MOFSL), a diversified financial services group with businesses in Securities, Asset Management, Private Equity and Investment Banking. MOPE is currently managing three growth capital funds i.e. India Business Excellence Fund (IBEF), India Business Excellence Fund II (IBEF II) and India Business Excellence Fund III (IBEF III) focused on providing growth capital to mid-market companies, typically in the range of INR 100 – 300 Crore, across sectors. IBEF, launched in 2007 is an INR 550 Crore (US$ 115 million) fund and is fully invested in thirteen portfolio companies across sectors such as food processing, bulk packaging, power transformers and power infra enablers, ITES, financial services, EMS, FMCG, auto components, etc. Out of the thirteen investments it has already made eleven exits. IBEF II, launched in 2012 is an INR 1,000 Crore (US$ 155 million) and is fully invested in eleven portfolio companies across sectors such as financial services, life sciences, niche manufacturing and consumption based sectors. On the back of its success of IBEF and IBEF II, MOPE is in the process of raising IBEF III, which is targeted to be an INR 2,000 Crore (US$ 325 million) fund. The second close of the fund has already been done at ~INR 1,370 Crore. Currently, investments are being made through IBEF III.
For further details contact:
Rohini Kute
Motilal Oswal Financial Services
Phone: +91-22-39822340
Mobile: +91-98201 96838
Alpesh Nakrani
Paradigm Shift Public Relations
Mob +91 98691 21167
Ph- +91 22 2281 3797 / 98
Devanathan R
N. Ranga Rao & Sons Private Limited
Phone: +91-821-2521227
Mobile: +91-77606 33788