In a bid to strengthen its position in the evolving premium natural
personal care segment, consumer goods major Hindustan Unilever Ltd (HUL)
has signed an agreement with Mosons Group to acquire its flagship brand
Indulekha for Rs. 330 crore.
The deal envisages the acquisition of the trademarks ‘Indulekha’ and
‘Vayodha’, intellectual property, design and knowhow. HUL will pay
Mosons Group Rs. 300 crore upon closing of
the transaction and a deferred consideration of 10 per cent on the
domestic turnover of the brands each year, payable annually for a
five-year period commencing FY18.
Sanjiv Mehta, CEO & Managing Director of HUL, said: “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.
Over the years, ‘Indulekha Bringha Oil’ has carved out a niche for
itself supported by endorsements and sustained investments in
brand-building.
The product was later relaunched in 2014 with a unique comb like cap
(popularly referred to as the ‘Selfie’) that aids direct application of
oil on the scalp, an innovation that has delighted consumers since its
introduction.
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