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A pedestrian walks past the Hindustan Unilever Limited headquarters in Mumbai.
Credit: Reuters Photo
Bengaluru: Consumer goods giant Hindustan Unilever Limited (HUL) is finalising a deal to acquire Jaipur-based skincare brand Minimalist in a Rs 3,000 crore deal, according to reports.
“In line with our business strategy, on an ongoing basis, we evaluate various strategic opportunities for the growth and expansion of our business,” HUL said in response to queries sent by DH.
The fast moving consumer goods (FMCG) company stated that it will make appropriate disclosures whenever there is any material development it is required under applicable laws.
It may be recalled that Minimalist had raised Rs 110 crore from Unilever Ventures in July 2021, which is the venture investing arm of Unilever, the British multinational corporation (MNC) which runs HUL in India.
At present, Minimalist founders Rahul Yadav and Mohit Yadav own close to 84% in the brand while Peak XV holds a 6 per cent stake. The multi-category beauty brand earned an annual revenue of Rs 350 crore as of March 31, 2024, a jump of 86 per cent year-on-year, according to startup data platform Tracxn.
If this deal goes through, Minimalist would be a part of HUL’s larger portfolio of beauty and personal care brands including Dove, Pond’s, Lakme, Dermalogica among others. Like most of the beauty startups, Minimalist sells its products online through its own website as well as e-commerce channels like Nykaa, Amazon and others.
The deal is likely to be a part of HUL’s strategy to entire niche segments, in this case skincare, by acquisition instead of creating an in-house brand. This is a strategy that is being used by several FMCG giants, underscoring a consolidation trend for these new-age brands, as previously also reported by DH.
These bigger brands have been facing competition, especially from the new-age direct to consumer (D2C) brands which cater to specific segments - a space where the former hasn’t been able to expand itself.
While such acquisitions help the bigger players expand and tap into a niche yet a high margin market with a different customer base, it also allows startups to scale their businesses rapidly, leveraging the larger network base created by FMCG giants.
In the past few years, HUL has acquired several brands, including Zywie Ventures - a plant based wellness solution brand, VWash - a market leader in feminine hygiene among others. It also merged with the GlaxoSmithKline’s (GSK) consumer healthcare arm which has a portfolio of iconic health food drink brands including Horlicks and Boost.
Queries sent to Minimalist remained unanswered until the time of going to press.