Roshan
Hindustan Unilever Ltd (HUL), one of India’s leading FMCG giants, has received approval from the Competition Commission of India (CCI) to acquire a 90.5% stake in Uprising Science Pvt Ltd, the parent company of popular beauty and personal care brand Minimalist. The deal, valued at ₹2,670 crore, marks HUL’s strategic expansion into the high-growth skincare and personal care segment. The company will also invest ₹45 crore as a primary infusion and plans to acquire the remaining 9.5% stake within two years.
What is Minimalist and Why Did HUL Acquire It?
Minimalist, operated by Jaipur-based Uprising Science, is a direct-to-consumer (D2C) skincare brand known for its science-backed formulations and transparency in product ingredients. The brand has gained significant traction among Indian consumers looking for clean and effective skincare solutions. The acquisition aligns with HUL’s goal of strengthening its presence in the premium beauty and personal care (BPC) category.
Details of the HUL-Minimalist Deal
- Deal Value: ₹2,670 crore
- Enterprise Valuation: ₹2,955 crore (pre-money)
- Stake Acquired: 90.5% initially, with the remaining 9.5% to be acquired in two years
- Primary Infusion: ₹45 crore
- Regulatory Approval: Granted by the Competition Commission of India (CCI)
The transaction involves a secondary buyout, where HUL will acquire the majority stake from existing shareholders. The agreement between HUL and Uprising Science has been formally executed, ensuring Minimalist’s integration into HUL’s vast portfolio of brands.
Why This Acquisition Matters for HUL
HUL, which already owns more than 50 well-known brands like Lakme, Lux, Knorr, Kwality Wall’s, and Surf Excel, has been aggressively expanding its footprint in the beauty and personal care segment. Minimalist’s acquisition offers HUL:
- Entry into the premium skincare market with a proven brand that resonates with millennial and Gen Z consumers.
- Stronger e-commerce presence with Minimalist’s successful direct-to-consumer (D2C) model.
- Portfolio diversification by adding a brand focused on clean beauty and ingredient transparency.
- Competitive edge against rivals like Nykaa, Mamaearth, and international skincare brands expanding in India.
Government & Industry Response
The Competition Commission of India (CCI) officially approved the acquisition, stating:
“The proposed transaction involves the acquisition by Hindustan Unilever of 90.5% shareholding of Uprising Science Pvt Ltd, with the eventual acquisition of the remaining 9.5% within two years.”
This approval paves the way for HUL to further integrate Minimalist into its product offerings and leverage its existing distribution channels to expand Minimalist’s market reach.
What’s Next for HUL and Minimalist?
With this acquisition, HUL is expected to:
- Expand Minimalist’s product range beyond skincare to categories like hair care and baby care.
- Leverage its strong offline presence to make Minimalist products available in retail stores across India.
- Enhance Minimalist’s global reach by utilizing HUL’s extensive international distribution network.
Industry analysts predict that this move could boost HUL’s revenue in the BPC segment and position the company as a strong competitor in the rapidly growing premium skincare market.
Conclusion
HUL’s acquisition of Minimalist for ₹2,670 crore is a landmark deal in the Indian skincare industry. By integrating Minimalist’s science-driven approach with HUL’s market expertise, the company is set to redefine the beauty and personal care space in India. With continued investments in innovation and distribution, HUL is well-positioned to capitalize on the growing demand for clean and transparent skincare solutions.
Stay tuned for more updates on HUL’s expansion strategies and the impact of this acquisition on the Indian beauty industry.
