Indian parent firm sells Darling braids maker to Kenyan company

A Darling beauty products shop on River Road in Nairobi. FILE PHOTO | NMG    

By KABUI MWANGI More by this Author

India's Godrej Consumer Products will sell a portion of its assets in Kenya's Style Industries Ltd to a newly incorporated entity, Hair Manufacturing Kenya Ltd.

Style Industries Ltd is the company behind the 'Darling' brand of braids, weaves, and wigs.

The transaction has been approved by the Competition Authority of Kenya (CAK) but on condition that at least 70 percent of Style Industries Limited’s employees are retained on employment terms that are no less favourable than their current terms for 12 months following completion of the transaction.

Read: Maker of Darling braids faces abuse of dominance fine

“This approval has been granted based on the finding that the transaction is unlikely to negatively impact competition in the market for hair extensions and wigs. However, the transaction will elicit negative public interest concerns,” said CAK in the notice without revealing the value of the deal.

“The proposed transaction involves the acquisition of certain assets – plant and machinery, office equipment and inventory – of Style Industries by Hair Manufacturing.”

Style Industries, a private limited liability company incorporated in Kenya, is principally involved in the manufacture and distribution of hair addition products such as braids, weaves, and wigs under the brand ‘Darling’.

Hair Manufacturing Kenya Limited, on the other hand, is a private limited liability company incorporated in Kenya but does not have any operations in the country since it has been newly incorporated for purposes of this transaction.

According to regulatory rules, merging parties whose combined turnover or assets, whichever is higher, is over Sh1 billion are required to seek approval from CAK before implementing intended transactions.

In Kenya, the market for hair extensions and wigs is largely fragmented with local manufacturers and a significant extent of imported goods.

Some notable players include Angels Hair Collection Kenya (Sanaa Industries Ltd), Lush Hair Kenya (Tolaram Group), Fashion Idol (Rebecca Fashion), Olivia Hair Kenya (Di Lorenzo Ltd), Africa Hair Factory Limited and Unique Beauty Salon Consultants (UBSC), among others.

According to global market research and consulting firm 6Wresearch, Kenya has increasingly been relying more on imports to meet its growing demand for human hair extensions as domestic production and supply continue to trail local demand.

Read: Indian giant firms grip on maker of Darling hair brand

CAK says that the industry’s revenue in 2022 was approximated at Sh80 billion at a time when Style Industry’s market share stood at five percent.

“Therefore, the proposed transaction will not affect market structure and concentration since Style Industries will exit the market and be replaced by Hair Manufacturing. Additionally, the target will continue to face competition from other players controlling 95 percent of the market,” said the regulator.

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