Hindustan Unilever Limited (HUL) has signed an agreement with Mosons Group to acquire its flagship brand ‘Indulekha’. The proposed acquisition is in line with HUL’s strategic intent to strengthen its leadership position in Personal Care by providing an impetus to its play in the evolving Premium Naturals segment.
The deal envisages the acquisition of the trademarks ‘Indulekha’ and ‘Vayodha’, intellectual property, design and knowhow, for a consideration of Rs. 330 crores, payable upon closing of the transaction and a deferred consideration of 10% on the domestic turnover of the brands each year, payable annually for a 5 year period commencing FY18. Mosons will continue to manage the business until the completion of the transaction.
Speaking about the agreement, Sanjiv Mehta, CEO & Managing Director, HUL, commented, “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. We are excited by the strong equity that the brand enjoys among consumers and see an opportunity in leveraging it’s ‘naturals’ and therapeutic positioning.”
Indulekha was first launched in 2009 as a premium Ayurvedic hair oil. The brand, with a strong presence across Kerala, Tamil Nadu and Karnataka and a recent foray into Maharashtra, had a turnover of Rs.100 crores and an EBITDA margin of around 30% for the year ending March 2015.