MUMBAI: FMCG giant
Hindustan Unilever
is closing in on talks to acquire
D2C beauty brand
Minimalist in a deal that could value the startup at about Rs 3,000 crore, sources aware of the discussions told TOI.
“The talks are ongoing but they are at an advanced stage and should close soon,” a source said. The acquisition will allow HUL to offer a wider and varied slate of products to consumers who are looking beyond the traditional beauty and personal care solutions, seeking differentiated products. Jaipur-based
Minimalist
– which counts Peak XV Partners as its largest institutional investor – sells a range of skin, body and hair care products.
“In line with our business strategy, on an ongoing basis, we evaluate various strategic opportunities for the growth and expansion of our business. We will make appropriate disclosures whenever there is any material development that requires disclosure under applicable laws,” an HUL spokesperson said in a statement. Peak XV Partners did not comment, while Minimalist could not be immediately reached for one.
HUL has been broadening its slate of new-age brands through investments and acquisitions to enter new spaces like health and well-being as well as tap into the growing premiumisation trend which has, in part, led to the rise of D2C brands in India.
In 2022, the company had announced the acquisition of a majority stake in Oziva and a minority investment in Wellbeing Nutrition. HUL has also been gearing its portfolio to cater to the changing consumption patterns – it already owns a spate of digital-first brands like Baby Dove, Acne Beauty, Simple, Love Beauty & Planet and the addition of Minimalist will only boost its portfolio in the space.
Last year, HUL split its beauty and personal care business to sharpen focus on the segments which have seen an onslaught from a crop of new-age, digital native brands which have attracted young consumers with their proposition of clean beauty. HUL’s strategy is to bet on the high growth demand spaces within the beauty and well-being space and to build what it describes as “future formats”. The beauty and well-being division currently contributes about 21% to HUL’s revenues.
