Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<keyword id="6365619" type="CITY" weightage="20" keywordseo="Hindustan-UniLever">Hindustan Unilever</keyword> Ltd (HUL) is acquiring Indulekha and Vayodha, hair-care brands to boost its ayurveda portfolio. 
 
HUL has entered into an agreement with Mosons Group to acquire the hair-care brands for Rs 330 crore, including intellectual property, design and knowhow. 
 
The company will also pay "deferred consideration of 10% on the domestic turnover of the brands each year" for five years starting FY18. 
Indulekha, launched in 2009, is a popular ayurveda hair oil brand in Kerala, Tamil Nadu and Karnataka and had sales of Rs 100 crore in the year ended March. 
 
"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," said Sanjiv Mehta, CEO and managing director of HUL. 
 
The acquisitions will help HUL overcome its Ayush brand, which was launched in 2001 but did not gain anything. 
 Reportedly, hair oil accounts for 52% of the <keyword id="3176224" type="UNKNOWN" weightage="20" keywordseo="Indian-hair-care-market">Indian hair care market</keyword> estimated at Rs 8,000 crore.

HUL is enhancing presence in ayurveda space and building personal care portfolio. Here’s how

<ul><li>HUL acquired brand Horlicks from GSK for about $398 million (₹ 3,041 crore) for the Indian market. </li><li>HUL’s parent company Unilever paid around $54 million (₹415 crore) for Horlicks brand for other geographies. </li><li>Edelweiss research predicts that by the end of the financial year 2020, HUL will be leading the food company business in India after buying out the Horlicks brand.</li></ul>Even in a volatile market, Hindustan Unilever’s (HUL) share price saw a 19% surge in the last one month. All thanks to the HUL and GlaxoSmithKline Consumer Healthcare (GSK) merger, which will make it India's biggest food company. <div type="image" title="HUL&amp;#39;s BSE Shareprice" msid="75245618" hostid="261"></div>Source:BSE The secret of the strength in the HUL-GSK deal is Horlicks, a health drink — which is made of wheat flour and malted wheat. However, Horlicks was earlier owned by one of GSK Plc’s group entities and hence did not automatically come into HUL’s fold pursuant to the merger. HUL paid GSK $398 million (₹30.5bn) more to buy Horlicks for the Indian market. And Unilever, HUL’s British-Dutch parent company, too paid around $54 million (₹4.15bn) to sell Horlicks in other countries. <div type="Article" hostid="261" msid="75243841" title="Coronavirus cases in India rise to 17,265— with 1553 new cases in the last 24 hours" mstype="2" mssubtype="0"></div> Horlicks accounts for 43% share in HFD category Almost 90 years after its India debut, Horlicks commands a premium and has managed to maintain its strong 43% volume share in India’s ₹6,500 crore health food drinks (HFD) category, according to <a href="https://economictimes.indiatimes.com/industry/cons-products/fmcg/gsk-fy19-value-share-in-health-drinks-weakens/articleshow/69350925.cms?from=mdr">ET</a>. And it could become much bigger under HUL whose distribution network is thrice as vast as compared to GSK in India. <div type="image" title="horlicks/twitter" msid="75245664" hostid="261"></div> Hence, just like its earlier acquisition of Indulekha, an ayurvedic oil for hair fall control, which saw a four-fold revenue jump in the last four years, HUL can propel Horlicks to new heights too. According to Edelweiss, the HFD category continues to provide immense growth opportunities. It grew by as much as 14-15% for a decade before the current economic slowdown amid coronavirus. Edelweiss research predicts that by the end of the financial year 2020 HUL will lead the food business in India much ahead of its competitors Nestle India, Britannia and ITC. HUL to become the biggest food company in India <table style="width:341.0pt;margin-left:4.7pt;border-collapse:collapse;mso-yfti-tbllook: 1184;mso-padding-alt:0in 5.4pt 0in 5.4pt"> <tbody><tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; mso-border-alt:solid windowtext .5pt;background:white;padding:0in 5.4pt 0in 5.4pt; height:16.5pt"> Food companies </td> <td style="width:209.0pt;border:solid windowtext 1.0pt; border-left:none;mso-border-top-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> Turnover (₹ crore) FY20E </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:47.25pt"> Hindustan Unilever (F&amp;R) and GSK consumer </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:47.25pt"> ₹12763 </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> Nestle India </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ₹12295 </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> Britannia </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ₹11532 </td> </tr> <tr> <td style="width:132.0pt;border:solid windowtext 1.0pt; border-top:none;mso-border-left-alt:solid windowtext .5pt;mso-border-bottom-alt: solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt;background: white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ITC </td> <td style="width:209.0pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; mso-border-bottom-alt:solid windowtext .5pt;mso-border-right-alt:solid windowtext .5pt; background:white;padding:0in 5.4pt 0in 5.4pt;height:16.5pt"> ₹10935 </td> </tr> </tbody></table>Source: Company, Edelweiss research The merger of HUL-GSK also involves HUL distributing GSK’s over-the-counter (OTC) brands like ENO, Crocin and Sensodyne for five years, which will further strengthen HUL’s position in the chemist channel. SEE ALSO: <a href="https://www.businessinsider.in/business/ecommerce/news/you-wont-be-able-to-order-non-essential-items-on-amazon-flipkart-and-others-till-lockdown-is-lifted/articleshow/75230373.cms">You won’t be able to order non-essential items on Amazon, Flipkart and others till lockdown is lifted</a> <a href="https://www.businessinsider.in/policy/economy/news/india-amends-fdi-policy-to-prevent-opportunistic-acquisitions-of-indian-companies-by-the-chinese/articleshow/75222108.cms">India amends FDI policy to prevent ‘opportunistic acquisitions’ of Indian companies⁠ by the Chinese</a>

The $452 million Unilever-GSK deal had to be changed because India’s love for Horlicks is worth billions

You Searched For "HUL acquires Indulekha" and got 2 results

HUL is enhancing presence in ayurveda space and building personal care portfolio. Here’s how

BI India Bureau

The $452 million Unilever-GSK deal had to be changed because India’s love for Horlicks is worth billions

Navdeep Yadav

Popular Keywords

Buying Guides