HUL Eyes ₹3,000 Crore Deal for Minimalist Skincare Brand
Hindustan Unilever Limited (HUL) is reportedly in talks to acquire the Jaipur-based skincare brand Minimalist for ₹3,000 crore (approximately $350 million). If finalized, this acquisition would mark a significant leap in Minimalist's valuation, soaring from ₹630 crore to ₹3,000 crore in just three years.
Minimalist has shown impressive growth, generating ₹350 crore in revenue for the financial year ending March 31, 2024, which is nearly an 89% increase from ₹184 crore the previous year. The brand has also been profitable for the last four years, allowing it to command a revenue multiple of nearly 10X, surpassing the typical 4-6X seen in similar direct-to-consumer (D2C) deals.
An HUL spokesperson stated, “We evaluate various strategic opportunities for growth and will disclose any material developments as required.” There has been no official comment from Minimalist’s founders, Mohit and Rahul Yadav.
HUL’s interest in Minimalist has been ongoing for three years, following an initial investment of ₹110 crore from Unilever Ventures, HUL’s private equity arm. This trend reflects a broader movement among FMCG giants to acquire emerging brands, helping them attract younger consumers while leveraging the established networks of larger companies. Other FMCG leaders like Marico, ITC, and Dabur have also pursued acquisitions of youthful brands like Beardo and Yogabar to capitalize on this growing market.