Hindustan Unilever Limited (HUL) acquires OZiva and Wellbeing Nutrition
Fast-Moving Consumer Goods (FMCG) major Hindustan Unilever Limited (HUL) announced the acquisition of two D2C brands - OZiva and Wellbeing Nutrition. With the acquisition, the company will foray into the health and well-being category.
HUL will acquire 51% equity interest in OZiva for Rs 264 crore in the first tranche, while the remaining 49% will be received at the end of a three-year period based on a pre-agreed valuation.
In addition, HUL will buy a 19.8% stake in Wellbeing Nutrition for approximately Rs 70 crore.
These strategic investments allow HUL to enter the fast-growing health and wellbeing category.
The deal also marks the beginning of the brand's consolidation in the direct-to-consumer (D2C) market.
Last year, Tata Consumer acquired a 100% stake in Kottaram Agro Foods – manufacturer of the Soulfull brand of millet-based breakfast cereals and snacks.
The vegetarian food category is an emerging segment in India and is worth around 2,000 crores as over 250 startups have entered this space in the last few years.
The health and wellness segment in India has a total potential market size of Rs 30,000 crore as per Euromonitor data.
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