FMCG major Hindustan Unilever (HUL) has forayed into the Rs 30,000 crore health and wellness industry with strategic investments in two direct-to-consumer brands—Zywie Ventures and Wellbeing Nutrition. Both transactions are expected to be completed in the next 1-3 months, subject to customary closing conditions.
HUL will acquire a 51% stake in plant-based consumer wellness brand OZiva (Zywie Ventures) for Rs 264.28 crore through a combination of primary infusion and secondary buyouts. The remaining 49% will be acquired at the end of 36 months based on pre-agreed valuation criteria, HUL said in a regulatory filing.
OZiva’s products focus on areas like lifestyle protein, hair and beauty supplements, and women’s health. The company, which reported a revenue of Rs 124.17 crore in FY22, is a digital-first brand with products available on its website and marketplaces. It is also expanding its presence in offline stores.
As part of its second deal in the health and wellness space, HUL will acquire a 19.8% equity stake in Wellbeing Nutrition (Nutritionalab Private Limited) for Rs 70 crore, through a combination of primary infusion and secondary buyouts.
Founded in 2019, Wellbeing Nutrition’s product line includes Melts (Oral Thin Strips), Slow (Slow-Release capsules), and Marine Collagen powder focused on areas such as beauty, everyday health, gut health, and sleep. At the end of FY22, it reported a revenue of Rs 19.40 crore. The company has a presence in D2C and digital marketplaces, and is also expanding in offline retail channels.
“These strategic investments give us an entry into the fast-growing health and wellbeing category. They align strongly with our mission to improve the health and wellbeing of consumers and empower people to take charge of their health through solutions that they can trust, said Sanjiv Mehta, CEO and Managing Director, HUL. “I strongly believe that HUL is well-positioned to support further scale-up of these businesses through our R&D, market development, distribution capabilities, and Unilever’s global health and wellbeing expertise,”
Edited by Saheli Sen Gupta