Hindustan Unilever acquires 90.5% stake in beauty brand Minimalist at Rs 2,955 crore valuation

Hindustan Unilever (HUL), India’s largest FMCG company, has announced the acquisition of a 90.5% stake in Jaipur-based direct-to-consumer (D2C) beauty brand Minimalist. The deal values Minimalist at a pre-money enterprise value of Rs 2,955 crore, with the remaining 9.5% stake to be acquired from its founders, Rahul and Mohit Yadav, within two years. As part of the agreement, the Minimalist team, led by the Yadav brothers, will continue managing the business for the next two years. HUL stated that the acquisition aims to leverage synergies and complementary capabilities between the two companies. The transaction is expected to close by the June quarter of 2025, subject to regulatory approvals and customary closing conditions.

Minimalist’s growth and market valuation

Founded in 2018, Minimalist has grown rapidly, offering skin, body, and hair care products through multiple sales channels. The brand was previously valued at $75–80 million during its last funding round, where it raised Rs 110 crore. Recent reports suggested that Minimalist was in talks with financial investors, including Premji Invest, seeking a valuation between Rs 2,000 and Rs 3,000 crore.

Minimalist’s founders hold 84% of the company, while Peak XV Partners owns the remaining 6%.

HUL’s strategy in Beauty and Personal Care

This acquisition underscores HUL’s focus on premium, high-margin segments, aligning with parent company Unilever’s global strategy to tap into low-penetration categories. HUL has been reorganizing its beauty and personal care (BPC) division to sharpen its focus on premium offerings. Currently, this division contributes nearly a fifth of the company’s revenue and about a third of its profits.

HUL’s portfolio, historically dominated by mass-market brands like Sunsilk, Clinic Plus, Lux, and Lakmé, has expanded to include ‘masstige’ and digital-first brands like Dermalogica, Simple, and Love Beauty & Planet. The acquisition of Minimalist is a significant step in capturing the growing demand for niche, premium beauty brands.

Competitive landscape

India’s beauty market is becoming increasingly competitive, with focused brands like L’Oréal, Mama Earth, and Nykaa collectively holding 33% market share. This share is expected to grow to 42% by 2027, while traditional players like HUL and Procter & Gamble could see their share drop by 900 basis points to 58%, according to a report by Redseer Strategy Consultants and Peak XV Partners. New-age brands such as Sugar Cosmetics, Plum, and Foxtale are also emerging as strong players, catering to India’s growing affinity for premium beauty products.

Global cosmetics giants like L’Oréal and Shiseido have also identified India as a key growth driver, citing its expanding middle class and increasing premiumization of the market. L’Oréal recently highlighted India as its fifth-largest market in its professional products division.

With this acquisition, HUL aims to solidify its position in the evolving beauty market, tapping into the rising demand for D2C brands while strengthening its portfolio in high-growth categories.