HUL buys Minimalist for ₹2,670 cr, expands biz with palm localisation

FMCG major Hindustan Unilever Limited (HUL) has announced the acquisition of the premium actives-led beauty brand Minimalist, which is set to provide a boost to its Beauty & Wellbeing portfolio. Minimalist, founded in 2020 by Mohit Yadav and Rahul Yadav, is one of the fastest-growing digital-first brands, which provides skincare and haircare solutions.

Minimalist has scaled to cross an annual revenue runrate (ARR) of ₹500 crore in 4 years, says HUL. It will acquire a 90.5% stake in the company through a combination of secondary buyouts and primary infusion, with a path to acquire the balance stake in two years.

The statement says the cost of acquisition is ₹2,670 crore to sellers at a pre-money enterprise valuation of ₹2,955 crore and a primary infusion of ₹45 crore to acquire 90.5% shareholding in Uprising Science Private Limited, which sells products under the Minimalist brand.

"Minimalist will join the strong portfolio of brands in our Beauty & Wellbeing division led by Harman Dhillon, Executive Director, Beauty & Wellbeing, HUL. The current Minimalist team led by Mohit and Rahul will continue to operate the business in collaboration with HUL. The transaction is expected to be completed in Q1 of FY 2026."

Rohit Jawa, CEO and Managing Director, HUL says the acquisition is a key step to grow the company's Beauty & Wellbeing portfolio in high-growth premium demand spaces. "Mohit, Rahul and the team have created a great brand built on science, product efficacy and transparency.”

Mohit Yadav and Rahul Yadav, Founders of Minimalist say they founded Minimalist to introduce a transparent Indian beauty range that’s trusted and loved on a global scale. "Now, with HUL’s robust offline distribution network, we look forward to making our products even more accessible across the country. This partnership also paves the way for our expansion into international markets helping us realise our dream of taking Minimalist to the world.”

The turnover of the business for the previous three financial years is FY 2021-22: ₹103 crore; FY 2022-23: ₹184 crore; and FY 2023-24: ₹347 crore. The acquisition will require the approval of the Competition Commission of India and any other approvals as may be necessary.

Acquisition of palm undertaking approved

The Board of Directors of HUL at its meeting today approved the acquisition of the palm undertaking of Vishwatej Oil Industries Private Limited, as a part of HUL’s Palm localisation strategy. The palm undertaking is based in the Kamareddy district of Telangana.

Palm and its derivatives are a key feedstock to manufacture a variety of HUL’s Personal Care, Beauty and Home Care products and are largely imported from Indonesia and Malaysia. HUL’s

palm localisation strategy aims to build supply chain resilience for palm derivatives through backward integration.

"With this acquisition, HUL has taken a step forward to build infrastructure for palm under the aegis of India’s ‘National Mission on Edible Oils’," says a statement.

The proposed plan involves setting up sapling nurseries, palm fresh fruit bunch collection centres and a state-of-the-art palm oil mill in the state. HUL will establish a farmer outreach programme to provide technical assistance to farmers for growing palm oil and introduce farming practices.

On the acquisition, Jawa says the deal will allow the company to contribute to India’s National Mission of increasing domestic oilseed production and reducing import dependence.

Board approves demerger of ice cream biz

The HUL board has also approved a scheme of arrangement, between HUL and its wholly-owned subsidiary, Kwality Wall's (India) Limited (KWIL)to demerge HUL’s Ice Cream business into KWIL. With this, one equity share of KWIL will be allotted for every equity share held in HUL. Upon demerger and listing of KWIL, the entire shareholding of KWIL will be held directly by shareholders of HUL.

"KWIL will be a leading listed ice cream company in India, with experienced management equipped with greater focus and flexibility to deploy strategies suited to its distinctive business

model and market dynamics, thus realising its full potential. Demerger will also facilitate a smoother transition for business as well as our people.

On this development, Jawa says the demerger will unlock fair value for HUL shareholders and give them the flexibility to stay invested in Ice Cream’s growth journey.