
What the Minimalist acquisition means for HUL

Summary
- The deal aligns with Hindustan Unilever's intent to transform its beauty and well-being portfolio into ‘high-growth’ premium spaces.
BENGALURU , NEW DELHI : India’s largest consumer goods maker just acquired one of the few profitable personal care startups in the country, signalling more consolidation as entrenched giants beef up premium offerings. Their target: a market segment that has weathered the consumption slump, propelled by younger Indians with a higher propensity to spend.
Hindustan Unilever Ltd (HUL) on Wednesday announced it had picked a 90.5% stake in Jaipur-based skincare products maker Minimalist for nearly ₹2,960 crore. The acquisition is one of the largest deals to acquire a direct-to-consumer (D2C) brand in India.
“It’s a solid development for the industry," said Satish Meena, advisor at Datum Intelligence. “We can expect much stronger consolidation in the consumer segment in 2025 because this deal has informed onlookers that an up-and-coming consumer brand with a growing user base and decent top line can make for a good buy."
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While India’s consumption has been slowing, demand for premium products shows no sign of abating after the pandemic, spawning a new breed of D2C startups. But intensified competition has also spurred higher spending on research and marketing, Mint earlier reported, making it tough for such ventures. More so when, according to data from Tracxn, funding for such brands has fallen from $1.8 billion in 2022 to $829.5 million in 2023 and $672.5 million in 2024.
For HUL, the Minimalist acquisition aligns with the company’s intent to transform its beauty and well-being portfolio into a “high-growth" premium category. Founded in 2020 by Mohit Yadav and Rahul Yadav, Minimalist is HUL’s latest acquisition after regional brands such as Indulekha and new-age health and wellness ventures Oziva and Wellbeing Nutrition.
Minimalist burst into India’s personal care market over the past five years, managing to capitalize on the growing affinity for face serums, hair oils and sunscreens with active ingredients such as vitamin C, retinol, and alpha arbutin.
The company targeted younger users, especially those who recently entered the workforce and are becoming more mindful of what they apply to their skin.
“It’s the age of ‘skincare routines’," Datum’s Meena said. “Everybody has one—some in the morning, some at night. Consumers know the ins and outs of every ingredient and simply won’t settle for poor-quality products."
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A top line in the range of ₹100 crore to ₹300 crore is now the sweet spot for consumer brand acquisitions, said Meena. “At this point, the brand has most likely scaled up and has a sizeable customer base, so with the help of the FMCG (fast-moving consumer goods) brand’s distribution network, it can move forward."
Minimalist is also among the few profitable beauty and personal care startups in the country. In 2023-24, it doubled its profit after tax to ₹10.5 crore from the previous fiscal, while its revenue shot up nearly 90% to ₹350 crore.
Premiumization for the win
For years, HUL has catered to India's beauty and personal care market with brands such as Sunsilk, Dove, Lakmé and Fair & Lovely. While Dove, Glow & Lovely sell in excess of ₹2,000 crore annually, brands such as Pond’s and Lakmé have surpassed the ₹1,000 crore a year milestone, per 2023 data shared by the company.
Minimalist closed 2023-24 with a turnover of ₹347 crore.
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To capture younger, more conscious consumers, HUL has been increasing its share of premium products in detergents, hair care, and skin cleaning categories. The acquisition helps HUL plug the premiumization gap in its beauty portfolio.
Minimalist is distinct from HUL’s more mass-market brands. Minimalist's vitamin C serum costs ₹699 for 30 ml and salicylic acid is priced at ₹549 for a 30 ml bottle. A Glow & Lovely cream costs around ₹199 for 80 grams, with its 25g variant available at ₹68. Pond's sunscreen costs around ₹254 for a 50g pack.
“Minimalist operates in the affluent and above segment at a ‘masstige’ price point and gives us an arsenal to improve our premium segment positioning within beauty and well-being," said Ritesh Tiwari, chief financial officer of HUL, while addressing reporters on Wednesday. “A space where HUL is under-indexed on the premium is beauty and well-being; in-home care, for example, we are ahead in terms of our share of premium products."
HUL's beauty and well-being unit reported sales of ₹10,258 crore for the nine months ended 31 December 2024. “Our beauty and well-being strategy is to build the number one beauty portfolio in the country. Premium within that becomes extremely important," Tiwari said.
In 2024, the company said it was set to transform its portfolio over the next decade. It planned to focus on its core portfolio, “future core" brands ripe for premiumization, and chase future trends via what it called “market makers".
The company identified six ‘high-growth’ segments as long-term bets, including premium face care, hair care, and body wash. The maker of Dove shampoo is also increasing its investments in categories such as serums and sun-protection products.
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HUL will use its distribution might to expand Minimalist, which will be led by Harman Dhillon, offline and overseas markets.
Minimalist’s in-house manufacturing capability is a plus as it helps create differentiation in the crowded beauty and personal care space, according to Meena. The firm has a manufacturing plant in Jaipur with a daily capacity of 150,000 units and invested as much as ₹100 crore to open another facility in Jaipur in 2023.