HUL makes first health & wellbeing bet with two deals
To acquire majority stake in Oziva maker, 19.8% in Nutritionalab
Hindustan Unilever (HUL) is set to enter India’s health & wellbeing category by acquiring stakes in two companies in this space. HUL on Thursday announced buying a majority stake in Zywie Ventures, which sells plant-based and clean-label consumer wellness brand under the name Oziva, for ~264.28 crore. It will also indirectly acquire its subsidiary Zenherb Labs.
In another transaction, the owner of Horlicks will take up a 19.8 per cent stake in Nutritionalab, which houses its products under the brand name Wellbeing Nutrition, for ~70 crore.
The health & wellbeing category is a fast-evolving category in India with a potential market size of ~30,000 crore over the next four-five years, Ritesh Tiwari, CFO, HUL, told analysts during a conference call after announcing the deals.
Zywie Ventures’ full acquisition would be done in two tranches – first, it will pick up a 51 per cent stake in Zywie Ventures which HUL intends to complete by January 2. The remaining 49 per cent would be considered after three years from the date of completion of the first transaction, which is subject to any extension according to the terms of transaction documents.
Both transactions are a combination of primary infusion and secondary buyouts. HUL will also have board representation in both companies. For Zywie Ventures, HUL said it will provide the company with the necessary capabilities and support to scale up.
Also, both companies will
continue to operate under their respective founders.
Oziva was launched in 2016 as a plant-based, and clean-label consumer wellness brand focused on spaces, such as lifestyle protein, hair & beauty supplements and women’s health, HUL said in its release.
“It (Oziva) is a digital-first brand with an omnichannel approach, available on its website (D2C), digital marketplaces, and offline stores where its presence is growing. The company has a strong inhouse R&D team comprising Phds, phytochemists and biotechnologists,” HUL said in its release.
Wellbeing Nutrition was founded in 2019. Its product range includes Melts (oral thin strips), Slow (slow-release capsules), and marine collagen powder focused on spaces, such as beauty, everyday health, gut health, and sleep. This acquisition is expected to be completed by January 23.