New Delhi: The country’s largest FMCG firm, Hindustan Unilever, will transfer the businesses of its brands ‘Lakme´ and ‘Lever Ayush´ to its subsidiary Lakme Lever in a bid to align its business model with the growing beauty and wellness industry in the country.
“As per the current business model, these (centres) contribute to an insignificant proportion of the company’s turnover and profits,” HUL said in a statement.
The move, which has been approved by the Board of Directors, will help Lakme Lever focus on creating and nurturing a ‘service´ mindset, prepare specialised and dedicated teams and build a different business model.
Presently, HUL operates in the beauty and wellness services segment through a network of largely franchised Lakme Beauty Salons and Ayush Therapy Centers.
After the transfer of licence to its subsidiary, HUL will not be directly engaged in the services business of Lakme salons and Ayush Therapy Centres, it said.
Currently, there are about 120 Lakme salons and 40 Ayush Therapy Centres in the country.