Minimalist acquisition by HUL

~Arshita Kaur, Nehal Jain, Varenya Rustagi

HUL x Minimalist: A Strategic Move in India’s Skincare Evolution

Hindustan Unilever Limited (HUL), has signed an agreement to acquire a stake in premium Jaipur-based actives-led beauty brand Minimalist. The acquisition aligns with the aim to enhance their Beauty & Wellbeing portfolio across high-growth premium demand spaces.

Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods company with a strong portfolio of personal care brands including Lakmé, Dove, and Ponds, that touch the lives of 2 out of 3 people in India.

Founded in 2020 by Mohit Yadav and Rahul Yadav, Minimalist is one of the fastest growing digital-first brands that sits at the intersection of beauty and active-led science. The brand is a research-based, consumer-focused hair and skin-care brand that provides top-notch, science-backed solutions that deliver impactful and transparent approaches. 

Minimalist’s rise in India’s booming skincare market has positioned it as a strong competitor to legacy brands. From its early days, Minimalist would offer straightforward formulations with minimal yet quality ingredients, accompanied by clear labelling and scientific backing.

HUL’s acquisition of Minimalist highlights the company’s focus on premium, high-margin segments, aligning with parent company Unilever’s global strategy of dominating low-penetration categories.

Inside the Deal: HUL’s ₹2,955 Cr Acquisition of Minimalist

 HUL has acquired 90.5% stake in premium skincare brand Minimalist of Jaipur, a combination of secondary buyouts and primary infusion. The valuation of the company is ₹2,955 crore, and the remaining balance of 9.5% is to be acquired by HUL within two years with adjustments applicable in the deal documents.

The transaction is expected to be completed in Q1 of FY 2026.

HUL will directly make an additional investment of ₹45 crores in Uprising Science Private Limited, which operates the Minimalist brand. This will foster long term success while also strengthening the company’s position in the market. 

While the official price tag remains hush-hush, rumour has it, the Yadav brothers strategically sold their brand to tap into HUL’s massive distribution network and reach a broader audience across India. This allows them to substantially expand their transparent and science-backed skincare brand while maintaining their focus on product quality and customer trust.

For HUL, the acquisition is a part of a broader shift towards premiumisation and a strategy to capitalise on India’s growing appetite for premiumisation, a trend that has reshaped consumer habits and led to an increase in demand for high-end products across sectors, particularly in beauty and personal care.

Scaling Skincare: How HUL’s Minimalist Move Reinforces Its Premium Play

HUL has a beauty and personal care (BPC) division that contributes nearly a fifth of the company’s revenue and about a third of its profits. The company is restructuring this division to sharpen its focus on premium offerings.

The beauty and wellbeing category already contributes 21% to HUL’s revenue, making it a vital segment for the company’s growth. With Minimalist in its fold, HUL can leverage the brand’s loyal consumer base and innovative product portfolio to solidify its leadership in India’s skincare market.

"The overall beauty market in India is roughly Rs 68,000 crore. Half of that market sits at the consumer cohort which are affluent and affluent plus. Minimalist is a brand squarely placed in that attractive beauty segment and gives us one more tool in our arsenal to improve our premium segment position in beauty and wellbeing," said Ritesh Tiwari, chief financial officer at HUL.

• This aligns with its B&W strategy of building the No.1 portfolio for beauty.

• Minimalist is a good strategic fit for HUL given the equity the brand brings.

• HUL is confident to scale this brand to greater heights by leveraging its complementary capabilities.

Hindustan Unilever's (HUL) acquisition of Minimalist is expected to significantly bolster their premium beauty and skincare portfolio by adding a strong, digitally-native brand with a focus on transparency and efficacy, allowing them to better cater to the growing demand for high-quality, premium skincare products, particularly among younger consumers, while leveraging HUL's extensive distribution network to reach a wider audience; essentially, Minimalist will add a new layer of premium products to HUL's existing range, particularly in the skincare segment, while enabling them to tap into the burgeoning online beauty market. 

What the acquisition means for HUL

• Strengthens its portfolio

  HUL's acquisition of Minimalist strengthens its portfolio in the premium beauty and skincare segment.

• Tapping into growing demand

  HUL's acquisition of Minimalist helps it tap into the growing demand for premium skincare products.

• Connecting with modern consumers

  HUL's acquisition of Minimalist helps it connect with modern consumers who are more mindful of what they put on their skin. 

What the acquisition means for the skincare market

• Increased competition 

  The beauty market in India is becoming more competitive, with new-age brands and global cosmetics giants entering the market. 

• Growing demand for premium skincare

  The demand for premium skincare products is growing, especially among younger users. 

• Growing demand for D2C brands 

  D2C brands are becoming more popular as they cater directly to consumers through digital platforms. 

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Future of Minimalist under HUL:

Here’s what HUL plans to do / will possibly do, with Minimalist:

1. Scale Minimalist to over Rs. 1,000 crores

   HUL has 19 brands worth over Rs. 1000 crore in revenue, and three moving in that direction. Its attempt will be to get the Rs. 500 crore Minimalist beyond this mark.

2. Expand Minimalist’s portfolio

   HUL will leverage its global R&D capabilities and product technologies to bolster Minimalist’s portfolio, ensuring continued innovation and product efficacy.

3. Expand Distribution to offline and in e-commerce

   HUL can help expand Minimalist’s offline presence to take Minimalist to more premium stores across the country. 

4. Leverage HUL’s supply chain for Minimalist

   It will also help reduce Minimalist’s dependency on suppliers, and enable greater cost efficiency by leveraging HUL’s economies of scale.

5. Give it leverage in e-commerce relationships

   There are always supplier/distributor and marketplace power struggles over discovery, product placement, and pricing. It hasn’t affirmed this plan, but when it comes to e-commerce and quick-commerce, HUL is a dominant supplier, and will clearly give Minimalist more leverage in these relationships, and possibly be in a position to extract higher margins.

   
   

   Key impacts on customers

   
   

   • Increased accessibility:

     Minimalist products, previously primarily available online, will now be readily accessible through HUL's extensive offline retail network, reaching a broader customer base. 

   • Premium quality focus:

     Minimalist's reputation for high-quality, ingredient-conscious skincare aligns with a growing consumer demand for transparent and effective products. 

   • Potential price changes:

     While not guaranteed, the acquisition could lead to potential price adjustments due to HUL's larger scale and distribution capabilities. 

     
     

   Key impact on the industry:

   • Validation of D2C brands:

     HUL's acquisition of Minimalist highlights the increasing market power and potential of successful Direct-to-Consumer (D2C) brands. 

   • Competition boost:

     Other players in the beauty market might feel pressure to innovate and elevate their product offerings to compete with Minimalist's premium positioning. 

   • Focus on transparency and quality:

     The acquisition reinforces the growing trend of consumers prioritizing transparency in product ingredients and efficacy, pushing other brands to adapt.

   Overall, HUL acquiring Minimalist is seen as a positive development for customers who will gain access to a wider range of premium skincare products, while for the industry, it signifies a shift towards greater focus on D2C brands, transparency, and innovation in the beauty space.