Hindustan Unilever Acquires Minimalist for ₹2,955 Crore to Boost Beauty Segment

Hindustan Unilever Limited (HUL) announced on Wednesday, January 22, the acquisition of the premium online skincare brand Minimalist for ₹2,955 crore. This development was shared via an official exchange filing.

Details of the Acquisition

HUL, the fast-moving consumer goods (FMCG) giant, has signed an agreement to acquire a 90.5% shareholding in Minimalist.

According to the BSE filing, this acquisition will strengthen HUL’s Beauty & Wellbeing portfolio as the company expands into high-demand sectors.

HUL will secure its stake through a combination of primary infusion and secondary buyout, with a pre-money enterprise valuation of ₹2,955 crore for Minimalist.

Expanding the Beauty & Wellbeing Portfolio

“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, CEO and Managing Director of HUL, in an official statement.

A founder of a consumer brand, speaking anonymously to Mint, 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 other large players.”

Surge in Popularity of Beauty Startups

Indian beauty and personal care startups have witnessed significant growth in recent years despite challenges related to scaling and profitability. This rise has been driven by the growth of online commerce and the influence of social media.

HUL’s Q3 Financial Performance

Hindustan Unilever’s net profit for the quarter ending December 31, 2024, grew 19% year-on-year to ₹2,984 crore.

The company’s consolidated total income increased by 1.7% to ₹16,050 crore compared to ₹15,781 crore in the same quarter the previous year.

Sales in HUL’s home care division rose by 6%, driven by high-single-digit volume growth in fabric wash and household care categories.

Meanwhile, the Beauty & Wellbeing segment posted a 1% growth for the October to December quarter. Additionally, on January 22, HUL approved the demerger of Kwality Wall’s, its ice cream business.

HUL shares closed 0.11% higher at ₹2,342.95 after Wednesday’s trading session.

About Minimalist

Founded in 2020 by Mohit Yadav and Rahul Yadav, Minimalist is one of India’s fastest-growing digital-first brands. The company operates at the intersection of beauty and actives-led science.

Its mission, “#HideNothing,” reflects its commitment to delivering highly effective skincare and haircare solutions.

Minimalist has achieved significant growth, rapidly scaling to an annual revenue run rate (ARR) of ₹500 crore within just four years. Built on strong fundamentals, the brand has demonstrated profitability since its inception.

Strategic Plans and Leadership

HUL’s acquisition of a 90.5% stake in Minimalist involves both secondary buyouts and primary infusion. HUL plans to acquire the remaining stake within two years.

Minimalist will become part of HUL’s Beauty & Wellbeing division, led by Harman Dhillon, Executive Director of the division.

The existing leadership team of Minimalist, including founders Mohit and Rahul, will continue to manage the business in collaboration with HUL. The transaction is expected to be finalized in Q1 of FY 2026.

Statements from Key Stakeholders

Rohit Jawa, CEO and Managing Director of HUL, emphasized the strategic importance of this acquisition: “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.”

Ritesh Tiwari, Executive Director, Finance & IT, and CFO of HUL, added, “We are excited to partner with the Minimalist team to unlock value through synergies and, together, scale the brand to greater heights by leveraging our complementary capabilities.”

Mohit Yadav and Rahul Yadav, the founders of Minimalist, shared their vision for the future: “We founded Minimalist to introduce a transparent Indian beauty range that’s trusted and loved on a global scale. We’re incredibly grateful for the overwhelming support we’ve received in India. 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 realize our dream of taking Minimalist to the world.”

Looking Ahead

HUL’s acquisition of Minimalist reflects its strategic focus on premium beauty and skincare segments.

With Minimalist’s robust growth trajectory and HUL’s extensive distribution network, the partnership promises to unlock significant value and accelerate the brand’s expansion in domestic and international markets.