Minimalist Acquired by Hindustan Unilever: The country’s largest FMCG company Hindustan Unilever (HUL) has announced the purchase of a 90.5% stake in Jaipur-based direct-to-consumer (D2C) beauty brand Minimalist.
HUL has announced the purchase of a 90.5% stake in Jaipur-based beauty brand Minimalist. The deal brings the pre-money enterprise value of Minimalist to Rs 2,955 crore, Whereas the remaining 9.5% stake will be purchased from its founders Rahul and Mohit Yadav within two years. Under the agreement, the Minimalist team will continue to manage the business for the next two years.
Table of Contents
HUL said? On Minimalist Acquired by Hindustan Unilever
HUL is said – That the acquisition is intended to take advantage of the synergy and complementary capabilities between the two companies. Subject to regulatory approvals, the transaction is expected to be completed by the June quarter of 2025.
Growth and Market Valuation of Minimalist Founded in 2018, Minimalist has grown rapidly offering skin, body, and hair care products through multiple sales channels. The brand was valued at $75-80 million during the last funding round, where it had raised Rs 110 crore. Minimalist founders own 84% of the company, while Peak XV Partners holds the remaining 6%.
CEO & MD of HUL is said On Minimalist Acquired By Hindustan Unilever
“In line with our strategic intent to transform our portfolio in fast-growing spaces, I am excited to announce the acquisition of the premium actives-led beauty brand Minimalist. This acquisition is another key step to grow our Beauty & Wellbeing portfolio in the high-growth masstige beauty segment,” said Rohit Jawa, CEO and managing director, of HUL.
HUL’s strategy in beauty and personal care: According to the media reports, This acquisition reflects HUL’s focus on the premium, high-margin segment. HUL is reorganizing its beauty and personal care (BPC) division to focus on premium offerings. Currently, this division contributes about one-fifth of the company’s revenues and about one-third of its profits.
Minimalist Acquired By Hindustan Unilever: HUL presented Q3 Results (YoY)
- Standalone income up 1.4% to ₹15,408 crore *Standalone profit up 19.1% to ₹3,001 crore
- EBITDA up 0.8% to ₹3,570 crore EBITDA margin declined from 23.3% to 23.2%
- Homecare segment revenue up 5.4% to ₹5,742 crore
- Beauty segment revenue up 1.4% to ₹3,438 crore (YoY)
- Personal care segment revenue down 3% to ₹2,246 crore
- Food segment revenue up 0.3% to ₹3,745
What’s in it for HUL?
This latest deal reflects HUL’s focus on high-margin and low-penetration categories, a strategy adopted by parent company Unilever. In April last year, HUL reorganized its beauty and personal care (BPC) division to sharpen its focus. The new beauty and wellbeing division accounts for nearly a fifth of HUL’s sales and contributes about a third of its profit.
According to industry experts, legacy fast-moving consumer goods players and global cosmetics giants are increasingly eyeing such acquisitions to strengthen their portfolios in high-growth, premium beauty categories.
India’s beauty and personal care market, valued at around $15 billion, is witnessing a shift. Beauty-focused brands like Mamaearth, Nykaa, Sugar Cosmetics, and Plum hold a 33% market share, which is projected to grow to 42% by 2027, as per a report by Redseer Strategy Consultants and Peak XV Partners. Meanwhile, the market share of traditional players such as HUL and Procter & Gamble is expected to reduce to 58% from 67% over the same period, as per the report.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗