Hindustan Unilever Reportedly in Talks to Acquire Minimalist for ~$350 Mn

FMCG giant Hindustan Unilever (HUL) is reportedly in talks to acquire the direct-to-consumer (D2C) beauty brand Minimalist for around Rs 3,000 crore (approximately $350 million). This move is part of HUL's strategy to diversify into high-margin segments, especially in the digital space.

Minimalist, known for its skincare, body care, and hair care products, has seen significant revenue growth and profitability recently.

HUL is considering acquiring a majority stake, but it could potentially lead to a 100% acquisition. Minimalist has raised funding from institutional investors such as Peak XV Partners, Unilever Ventures, and Twenty Nine Capital Partners. Peak XV Partners is the brand's largest investor.

The founders, Rahul Yadav and Mohit Yadav, collectively own nearly 84% of the company, while Peak XV Partners holds a 6% stake.

HUL has previously invested in other digital-first brands like Oziva and Wellbeing Nutrition.

Minimalist has seen impressive growth, with its revenue jumping 86% to Rs 350 crore in FY24, and its profit doubling to Rs 10.8 crore. In FY22, it reported a profit of Rs 16 crore on a revenue of Rs 112 crore.

This development reflects the ongoing consolidation trend in the consumer goods industry.

This acquisition could mark another instance of a fast-growing online D2C brand being acquired by a large enterprise, reflecting the ongoing consolidation trend in the consumer goods industry.

Of late, there were few D2C brands that have been acquired by FMCG giants. Marico has been quite aggressive in its D2C acquisition strategy. The company acquired men's grooming startup Beardo, health foods company True Elements, beauty brand Just Herbs, and plant-based products brand Plix. These acquisitions have helped Marico diversify its portfolio and tap into the growing D2C market.

Emami has also entered the D2C segment by acquiring The Man Company and acquired 19% equity stake in D2C nutrition firm TruNative F&B Pvt Ltd. These acquisitions are part of Emami's strategy to compete with emerging D2C brands and expand its presence in the personal care market.

Hindustan Unilever and NIESBUD to Develop Entrepreneurial Skills and Create Sustainable Livelihood Opportunities

National Institute for Entrepreneurship and Small Business Development (NIESBUD), a premier organization of the Ministry of Skill Development and Entrepreneurship, and Hindustan Unilever Limited (HUL) have signed a memorandum of understanding (MoU) for developing entrepreneurial skills among the youth and identifying other aspects for mutual collaboration. 

The alliance will further enhance employment generation and create sustainable livelihood opportunities, giving a major boost to nano and micro-entrepreneurship advancement in the country.

Under the partnership, both the entities will collaborate to organize training programmes, develop course curriculum, undertake cluster development activities, organise workshops and extend incubation support, provide industry linkages, assist trainees in linking up with suitable wage employment, etc.

Besides, HUL is contributing INR 63,00,000 to NIESBUD to support the Skill Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) Project, which aims at strengthening the entrepreneurship ecosystem, bringing in better market connectivity and inclusion of marginalised sections of the society.

Mr. Rajesh Aggarwal, Secretary, MSDE said that India, transforming into the Skill Capital of the World opens a horizon of new opportunities for its youth. Today, entrepreneurs are considered national assets and with the right skill training support, they can not only bring innovations to the business and provide world-class services, but also stimulate economic growth, innovation, competitiveness, and alleviate poverty. Therefore, as we recover from the COVID-19 pandemic, there is an urgent need to empower and enable them in creating a world where we have more job providers than job seekers. It is my firm belief that this partnership will provide a roadmap for employment, growth, and entrepreneurship he added.

Anuradha Razdan, Executive Director, Human Resources said that Skill development is the first and most important step towards building an Aatmanirbhar Bharat and we at HUL wholeheartedly support this movement. As a company, we have made the social commitment to upskill and reskill over 15 lakh youth in India by 2030 to increase their chances of employability. We will also be upskilling our workforce to make them future-fit. As a key milestone in this direction, we have signed a partnership with NIESBUD and MSDE, where HUL will help promoting skill building and inculcate an entrepreneurial mindset among youngsters. We hope to build a long and meaningful association in the long run she added.