Direct-to-consumer (D2C) skincare brand Minimalist, recently acquired by Hindustan Unilever (HUL) for Rs 3,000 crore, will leverage the FMCG firm’s vast distribution network to scale up both its domestic and international presence. The deal, which aligns with Minimalist’s expansion goals, will provide the resources needed for growth in manufacturing, research and development (R&D), and offline retail penetration.
Speaking to FE in his first media interaction post-acquisition, Minimalist’s co-founder Mohit Yadav outlined the company’s roadmap for expansion, emphasising plans to establish a new manufacturing plant in Jaipur to meet rising demand.
Minimalist had been in discussions to raise $15-$20 million (approximately Rs 130-175 crore) last year to fund its growth initiatives, including a new plant, product R&D, and global expansion. However, the acquisition by HUL provided the brand with an even greater opportunity.
“We were looking to raise funds for international expansion and offline distribution in India, and around that time, conversations with HUL began. The deal with HUL will help us achieve both objectives more efficiently,” said Yadav.
Minimalist, known for its active ingredient-based skincare products, generated revenue of Rs 350 crore in FY24, with a profit of Rs 10.84 crore. Now, with HUL’s backing, the brand aims to accelerate its expansion across multiple fronts.
Having entered international markets in 2021, Minimalist has made significant inroads in regions such as Southeast Asia, the Middle East, the US and the UK. Currently, around 20% of the brand’s business comes from international markets, with Southeast Asia and the Middle East being key revenue drivers.
“We entered the UAE market within 18 months of launch, and now we have a presence in multiple countries, including Malaysia, Indonesia, Saudi Arabia and the UK, through a mix of online and offline channels,” Yadav shared.
Minimalist is available in brick-and-mortar stores in Malaysia and plans to extend its offline footprint in Indonesia and Thailand. In the US and UK, the brand sells its products primarily via Amazon, while in the UK, it has also partnered multi-brand beauty retailer Superdrug for offline distribution.
With HUL’s extensive global network, Minimalist aims to strengthen its standing in existing international markets while exploring new ones.
On the domestic front, Minimalist is gearing up to enhance its manufacturing capabilities by setting up a second production facility in Jaipur. The new plant, expected to cost around `100 crore, marks a significant investment compared to the Rs 30 crore that Yadav and his brother Rahul had initially put into their first factory.
“We are in the evaluation stage for a new plant in Jaipur itself. This expansion will help us ramp up production capacity to meet growing demand,” Yadav said.
The company’s current manufacturing plant can produce nearly 150,000 units per day and operates at 60%-65% capacity. The new facility will allow Minimalist to scale up production further and support its expanding offline presence.
Minimalist’s existing offline distribution network includes beauty retail chains such as Nykaa’s offline stores, organised pharma retail like Apollo Pharmacy, general beauty trade outlets, and independent pharmacy stores. Having ventured into offline sales in 2022, two years after launching as a digital-first brand, the company now plans to leverage HUL’s robust distribution infrastructure to strengthen its brick-and-mortar footprint.
Offline distribution remains a key challenge for digital-first D2C brands. Many, including Honasa Consumer (owners of Mamaearth and The Derma Co), have faced hurdles in transitioning their distribution models to accommodate offline trade. Minimalist aims to navigate this challenge seamlessly with HUL’s expertise.
Product innovation is another key pillar of Minimalist’s growth strategy. With HUL’s acquisition, the brand now has access to the FMCG giant’s extensive global R&D resources, which will enable faster and more advanced product development.
Minimalist currently operates an R&D facility in Jaipur, focusing on skincare, haircare, and its recently introduced baby-care line. The brand is known for using active ingredients — compounds scientifically proven to address specific skin concerns — such as hyaluronic acid, niacinamide, ceramides, and retinol.
“We will get access to research from HUL’s global R&D unit, which will significantly speed up product development and innovation,” Yadav said. This access is expected to enhance Minimalist’s product offerings and broaden its portfolio.