BENGALURU: Honasa Consumer Ltd’s acquisition of a majority stake in Fluence Pharma marks more than its entry into nutraceuticals. It is also a clear signal that India’s beauty and personal care (BPC) brands are increasingly looking to healthcare and prescription-led segments to build consumer trust and unlock new avenues of growth, industry executives told Mint.
The Mamaearth parent said last week it will acquire a 58% stake in Mumbai-based Fluence Pharma at an enterprise value of around ₹135 crore, and will purchase the remaining stake in phases over the next 5-7 years. Alongside the acquisition, the company is setting up a wholly-owned subsidiary, Honasa Health, to build a business-to-consumer nutraceuticals franchise.
Fluence sells condition-specific over-the-counter (OTC) supplement kits for hair and skin care through a network of more than 3,000 dermatologists, and has built its business around patented Cyclical Nutrition Therapy, which delivers nutritional supplements in cycles rather than in fixed daily combination to address hair and skin concerns.
The company generated about ₹40 crore in revenue in FY26 with an Ebitda (earnings before interest, taxes, depreciation, and amortization) margin of more than 20%, according to Honasa’s stock-exchange filing.
The deal comes at a time when the beauty market is evolving rapidly beyond cosmetics and topical treatments. Consumers are increasingly seeking “inside-out” solutions that combine beauty products with nutrition and wellness interventions. Honasa estimates India’s vitamins, minerals, and supplements market at over ₹16,000 crore and said online searches for hair and skin nutraceuticals have risen by around 40% between FY24 and FY26.
“Beauty is becoming more evidence-led. The companies that can bridge consumer brands and healthcare ecosystems will be better placed to capture premium demand,” said Satish Meena, analyst at market research firm Datum Intelligence.
At 12:33 PM, shares of Honasa Consumer Ltd traded 5.4% higher at ₹440.35 apiece on the BSE on Monday.
The credibility play
Industry executives say Honasa’s move reflects a wider shift in both India and global markets, where the lines between beauty, wellness and healthcare are increasingly blurring.
“This is also less about adding another product category and more about acquiring trust,” Datum’s Meena said. “Clinical credibility in one category often spills over to the rest of the portfolio, helping brands build trust with consumers.”
“Consumers are increasingly seeking comprehensive solutions to beauty concerns such as hair fall and acne, going beyond topical treatments to include ingestible vitamins and supplements that address these issues at their root,” Varun Alagh, co-founder and chief executive officer (CEO) of Honasa, said during the March-quarter analyst call, adding that the trend is gaining momentum in India.
The trend is also reshaping dealmaking in India.
In 2023, Marico acquired a majority stake in nutrition foods player Plix for ₹369 crore. BoroPlus parent Emami said in its FY25 annual report that it plans to launch a range of nutraceutical products backed by research and clinical trials. In 2022, HUL acquired a 51% stake in plant-based nutrition brand Oziva for ₹264 crore.
Earlier this year, USV Pharma acquired a controlling stake in HUL-backed Wellbeing Nutrition to enter the fast-growing nutraceuticals market, while Sun Pharmaceutical Industries bought Innovcare Lifesciences to bolster its specialty and wellness portfolio last week.
“Because these products sit in the OTC space, they lend themselves well to modern trade, e-commerce, and quick commerce channels. Companies that already have strong consumer distribution networks may have an advantage in scaling them,” Meena added.
What it means for Honasa
For Honasa, the acquisition also represents a strategic broadening of its business model.
The move also complements Honasa’s existing portfolio, which is already built around science-led skincare brands such as The Derma Co. and Dr Sheth’s that have popularised active ingredients including salicylic acid, niacinamide and hyaluronic acid among Indian consumers. In December last year, the company acquired oral care brand Fang Oral Care, marking its entry into another new category.
Through Honasa Health, the company plans to create integrated regimes that combine topical products with nutraceutical interventions for conditions such as hair fall and acne, leveraging Fluence’s patented science and doctor testimonials while using its own digital distribution capabilities, it said in the exchange filing.
Honasa said the acquisition strengthens its portfolio with a “differentiated and patented science-led brand” and marks its entry into a fast-growing category. The company has also indicated ambitions to build nutraceuticals—supplements that offer health benefits beyond basic nutrition—into a sizeable franchise over time.
“The acquisition suggests Honasa is thinking about building a larger health-and-beauty ecosystem rather than remaining a pure-play beauty company,” said Datum’s Meena.
The Indian nutraceuticals market is expected to reach $37-38 billion by 2026 and further expand to nearly $55-57 billion by 2030, reflecting a CAGR of nearly 10.5%, according to last week's report by CareEdge Ratings.