Recode Studios signs strategic deal to acquire 51% stake in Premium Beauty Brand Aflairza

Recode Studios Limited has signed a strategic Investment Term Sheet to acquire up to a 51% equity stake in Aflairza Professionals Private Limited, the company behind AFLAIRZA, an emerging premium luxury beauty and cosmetics brand catering to the fast-growing beauty and personal care market.

The proposed acquisition will be executed in two phases, combining a secondary purchase of shares from the existing promoters and a primary capital infusion into the business. Through this strategic investment, Recode aims to accelerate Aflairza's growth by strengthening manufacturing capabilities, expanding its portfolio of premium luxury beauty and personal care products, enhancing distribution networks, and increasing the brand's presence across online and offline retail channels.

Under the proposed transaction, Recode will initially acquire a 33% stake in Phase I for an aggregate consideration of ₹8.32 Crore, with equal allocation between promoter share purchase and fresh capital into the company. Following the achievement of agreed milestones, Recode intends to increase its shareholding to 51% through Phase II, thereby becoming the majority shareholder and reinforcing its strategic focus on the premium Beauty & Personal Care (BPC) segment.

Founded by Mr. Sagar Urvish Gandhi and Mr. Deep Parekh, Aflairza Professionals has established itself as an emerging premium luxury beauty and cosmetics brand, offering professional-grade products developed using advanced Korean formulations. The company has built a growing portfolio of innovative, long-lasting, and high-performance products that cater to beauty professionals and discerning consumers across India.

As part of the proposed transaction, the existing promoters will continue to lead the company's day-to-day operations, ensuring continuity in leadership while benefiting from Recode's strategic guidance, financial resources, and growth initiatives. Recode will also nominate a representative to the Board to support governance, strengthen the brand's premium positioning, and drive long-term value creation.

Commenting on the company's Development, Dheeraj Bansal, Chairman & Managing Director, said: "This proposed investment marks another important milestone in Recode's long-term strategy of partnering with high-potential consumer brands. Aflairza has built a strong portfolio of innovative beauty products, backed by a premium luxury brand positioning and a differentiated product offering. The brand's ability to command superior value realization reflects its growing consumer acceptance and reinforces its position in the premium beauty segment.

This acquisition is well aligned with our strategic focus on expanding our presence in the Beauty & Personal Care (BPC) category through premium and aspirational brands. We see significant opportunities to leverage Recode's product development capabilities, industry expertise, distribution network, and operational strengths to accelerate Aflairza's next phase of growth. Together with the founders, we aim to strengthen the brand's market presence, broaden its product portfolio, and create sustainable long-term value for customers, partners, and shareholders alike. We look forward to building one of India's leading premium beauty businesses over the coming years."

Source : Equity Bulls

Keywords

RecodeStudios Investment Acquisition AflairzaProfessionals