In order to strengthen its position in the evolving premium natural personal care segment, FMCG major HUL has struck an agreement with Mosons Group to acquire its flagship brand Indulekha, Vayodha for Rs. 330 crore.
“The deal envisages the acquisition of the trademarks Indulekha and Vayodha, intellectual property, design and know-how. 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,” HUL said in a statement.
Indulekha was launched in 2009 as a premium ayurvedic hair oil. It has a strong presence in Kerala, Tamil Nadu and Karnataka. The brand had a turnover of Rs100 crore and EBITDA margin of around 30% in the year ended March.
The transaction is subject to fulfillment of certain conditions and the parties will work together to complete this over the next few months. Mosons will continue to manage the business until the completion of the transaction.
“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,” Sanjiv Mehta, CEO & Managing Director of HUL, said
In September this year, HUL also announced plans to bring back its Ayurveda health care and personal care products brand Lever Ayush, by going mainstream with its first exclusive e-commerce launch in India. The company launched Ayush in 2001. Later, there were reports that HUL may pull out the brand from the market.