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New Delhi(PTI): FMCG major Hindustan Unilever Limited (HUL) will acquire premium natural hair care brands Indulekha and Vayodha from Mosons Group for Rs 330 crore in order to strengthen its personal care business.
The acquisition is to strengthen HUL’s leadership position in the personal care segment by providing an impetus to its presence in the evolving premium naturals segment, the company said in a statement.
“The deal envisages the acquisition of the trademarks Indulekha and Vayodha, intellectual property, design and know-how, for a consideration of Rs 330 crore, 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 five-year period commencing FY18,” it added.
Launched in 2009, Indulekha has a strong presence in the southern markets of Kerala, Tamil Nadu and Karnataka and it recently forayed into Maharashtra. It had a turnover of Rs 100 crore for the year ending March 2015.
Commenting on the development, HUL CEO and Managing Director Sanjiv Mehta 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”.
The transaction is “subject to fulfilment of certain conditions” and both parties will work together to complete it over the next few months.
“Mosons will continue to manage the business until the completion of the transaction,” the statement added.