Hindustan Unilever Enters Into The Health And Wellbeing Segment With Two Acquisitions

HUL Is Set to Acquire the Majority Share in OZiva and About 19.8 percent Of Wellbeing Nutrition Investing a Total of INR 335 Crore

On Thursday, HUL, a leading FMCG maker, declared its colossal acquisition of a 19.8 percent equity in Wellbeing Nutrition along with a significant stake in OZiva, investing a total amount of approximately USD 40.6 million (INR 335 crore) in foraying into the health and wellbeing segment.

Hindustan Unilever Limited (HUL) will obtain a 51 percent share in Zywie Ventures Private Ltd, the owner of the brand OZiva, by investing INR 264.28 Crore, announcing their entrance into the health and wellbeing segment.

Apart from the following investment, HUL will also invest around USD 32 million (INR 70 crore) (in cash) to acquire a 19.8 percent stake in Nutritionalab Pvt Ltd (Wellbeing Nutrition).

Health and wellbeing segment in India is rapidly developing, making it a potential market accounting for around USD 3.6 billion (INR 30,000 crore) in size.

According to a statement from the FMCG major, HUL will be acquiring a controlling 51 percent equity stake in OZiva, by combining a primary infusion and secondary buyouts. The leftover 49 percent will be obtained after a period of 36 months gets over on the basis of pre-agreed valuation criteria. In the meantime, Aarti Gill and Mihir Gadani, founders of the present OZiva team, will continue with their functions.

Additionally, HUL will provide representation on the board along with essential qualifications to support the scale-up. Whereas HUL will gain a 19.8 percent equity stake in Wellbeing Nutrition via a mixture of primary infusion and secondary buyouts.

Regarding the merger costs, HUL told the bourses around USD 50.6 million (INR 70 crore) will be invested for acquiring the proposed stake.

The product range at Wellbeing Nutrition comprises melts, slow and marine collagen powder.

The Nutrition team at Wellbeing, led by Avnish Chhabria, will remain unchanged, and HUL will also have a representation on the board.

Both of the transactions are subject to be finalised within the next 1-3 months, contingent upon customary closing conditions, as per HUL, the owner of well-known brands including Rin, Lux, Lakm, Wheel, Brooke Bond and Horlicks.

OZiva's owner, Zywie Ventures, had an INR 124.17 crore turnover from operations in FY22, whereas Wellbeing Nutrition's FY22 turnover was INR 19.40 crore.

CEO and Managing Director at HUL, Sanjiv Mehta, commented on the development saying that such well-thought and planned investments give them a way of entering the rapidly evolving health & well-being category. They strongly align with their goal of improving the health and well-being of consumers while empowering people to take control of their health by using solutions they can trust.

He added by stating that HUL is in a place to help further the business's scale-up via market development, R&D, distribution abilities, as well as the world-renounced health & well-being expertise of Unilever.

According to Aarti Gill and Mihir Gadani, the next step in the journey with OZiva's concentration on innovation in the health and well-being sector, along with the vital abilities of HUL in category development and distribution, they trust that they can form a stronger purpose-led brand that works to bring together their vision and impact more lives worldwide.

The founder & CEO of Wellbeing Nutrition, Avnish Chhabria, stated that they hope this alliance will help boost Well-being Nutrition by taking advantage of the reach and capabilities of HUL and evolving into a preferred lifestyle wellness brand.

According to Procurement Resource, the article covers a recent step taken by HUL to acquire stakes at OZiva and Wellbeing Nutrition, respectively. The total investment of INR 335 Crore comes as a step by HUL for entering into Indias's Health and Wellbeing Segment, which is expected to grow by INR 30,000 crore (in size). The merger will help the companies expand their offering since HUL s in a place to help further the business's scale-up via market development, R&D, distribution abilities, as well as the world-renounced health & well-being expertise of Unilever.