Hindustan Unilever Acquires Minimalist for ₹2,955 Crore

Hindustan Unilever Ltd (HUL), India’s leading FMCG company, announced the acquisition of a 90.5% stake in the premium skincare brand Minimalist for ₹2,955 crore on January 22, 2025. The deal, comprising a primary infusion and secondary buyout, marks a significant step in HUL’s strategy to strengthen its Beauty & Wellbeing portfolio, which recorded modest growth in the last quarter.

The acquisition of Minimalist, a direct-to-consumer skincare brand known for its science-backed formulations and transparency, highlights HUL’s focus on tapping into high-growth premium segments. “We are delighted to welcome Minimalist into the HUL family. This acquisition is another key step to grow our 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,” said Rohit Jawa, HUL’s CEO and Managing Director, in an official statement.  

HUL’s Strategic Move into the Premium Skincare Market  

Minimalist’s addition to HUL’s portfolio comes at a time when the beauty and personal care market in India is experiencing rapid growth, driven by increasing online commerce and social media influence. The brand is expected to give HUL a competitive edge in the skincare segment, particularly in the active ingredients category, which has gained immense popularity. 

A founder of another consumer brand, speaking to *Mint* on the condition of anonymity, commented, “Minimalist will be a good addition to HUL’s skincare portfolio. Active ingredients have emerged as a top category under skincare, and HUL will get a head-start before the other large players.”  

The acquisition aligns with HUL’s broader strategy of expanding into high-demand, high-margin categories. The deal is also expected to bolster the company’s performance in the Beauty & Wellbeing division, which posted just 1% growth in the October-December 2024 quarter.  

Financial Performance and Recent Developments  

In its Q3 results, HUL reported a 19% year-on-year increase in net profit to ₹2,984 crore, while consolidated total income rose 1.7% to ₹16,050 crore. The home care division was a key driver of this growth, with sales rising 6% due to robust demand in fabric wash and household care products.  

Meanwhile, HUL’s Beauty & Wellbeing segment, despite the Minimalist acquisition, posted slower growth at 1%. Analysts expect the addition of Minimalist to bring renewed momentum to this division.  

On the same day as the acquisition announcement, HUL also approved the demerger of its ice cream business, Kwality Wall’s, indicating its intention to streamline and sharpen its focus on core growth areas.  

Conclusion

HUL’s acquisition of Minimalist for ₹2,955 crore underscores its commitment to expanding in high-growth, premium categories within the beauty and personal care market. With Minimalist’s strong brand positioning and scientific approach, HUL aims to capture a larger share of the burgeoning skincare market in India. While the deal is expected to strengthen HUL’s Beauty & Wellbeing portfolio, its success will depend on the company’s ability to leverage Minimalist’s brand equity and effectively integrate it into its existing operations. This acquisition, coupled with HUL’s broader strategic initiatives, positions the company to capitalize on evolving consumer trends and sustain its leadership in India’s FMCG sector.