HUL signs agreement with Mosons Group for acquisition of Indulekha
HUL signs an agreement with Mosons Group for acquisition of its flagship ‘Indulekha’ brand
Hindustan Unilever Limited (HUL) today announced that it has signed an agreement with Mosons Group to acquire its flagship brand ‘Indulekha’. The proposed acquisition is in line with HUL’s strategic intent to strengthen its leadership position in Personal Care by providing an impetus to its play in the evolving Premium Naturals segment.
The deal envisages the acquisition of the trademarks ‘Indulekha’ and ‘Vayodha’, intellectual property, design and knowhow, for a consideration of Rs. 330 crores, payable upon closing of the transaction and a deferred consideration of 10% on the domestic turnover of the brands each year, payable annually for a 5 year period commencing FY18.
The transaction is subject to fulfillment of certain conditions and the parties will work together to complete this over the next few months. Mosons will continue to manage the business until the completion of the transaction.
Sanjiv Mehta, CEO & Managing Director of HUL, said: “The acquisition of Indulekha brings to HUL a premium brand with strong credentials around Ayurveda that will complement our existing portfolio and strengthen our presence in the Hair Care category. We are excited by the strong equity that the brand enjoys among consumers and see an opportunity in leveraging it’s ‘naturals’ and therapeutic positioning.”
Indulekha was first launched in 2009 as a premium Ayurvedic hair oil. Over the years, ‘Indulekha Bringha Oil’ has carved out a niche for itself supported by endorsements and sustained investments in brand building. The product was later relaunched in 2014 with a unique comb like cap (popularly referred to as the ‘Selfie’) that aids direct application of oil on the scalp, an innovation that has delighted consumers since its introduction. The brand, with a strong presence across Kerala, Tamil Nadu and Karnataka and a recent foray into Maharashtra, had a turnover of Rs.100 crores and an EBITDA margin of around 30% for the year ending March 2015.
About Hindustan Unilever Limited
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of nine out of ten Indian households. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others.