HUL's Minimalist asset big push for beauty portfolio

India's largest consumer goods maker just acquired one of the few profitable personal care startups in the country, signaling more consolidation as entrenched giants beef up premium offerings.

- Sowmya Ramasubramanian & Suneera Tandon

India's largest consumer goods maker just acquired one of the few profitable personal care startups in the country, signaling more consolidation as entrenched giants beef up premium offerings. Their target is a segment of the market that has weathered the consumption slump, propelled by younger Indians with higher propensity to spend.

Hindustan Unilever Ltd (HUL) on Wednesday announced it had picked a 90.5% stake in Jaipur-based skincare products maker Minimalist for nearly ₹2,960 crore. The acquisition is one of the largest deals to acquire a direct-to-consumer (D2C) brand in India.

"It's a solid development for the industry," said Satish Meena, advisor at Datum Intelligence. "We can expect much stronger consolidation in the consumer segment in 2025 because this deal has informed onlookers that an up-and-coming consumer brand with a growing user base and decent top line can make for a good buy."

While India's consumption has been slowing, demand for premium products shows no sign of abating after the pandemic, spawning a new breed of D2C startups. But intensified competition has also spurred higher spending on research and marketing, Mint earlier reported, making it tough for such ventures. More so when, according to data from Tracxn, funding for such brands has fallen from $1.8 billion in 2022 to $829.5 million in 2023 and $672.5 million in 2024.