FMCG major Hindustan Unilever has forayed into health and wellbeing category through strategic investments in Zywie Ventures’ OZiva and Nutritionalab’s Wellbeing Nutrition.
HUL will acquire 51% stake in OZiva through a combination of primary infusion and secondary buy-outs for a cash consideration of `264 crore. Balance 49% will be acquired at the end of 36 months on pre-agreed valuation criteria, HUL said.
In Wellbeing Nutrition, HUL will acquire 19.8% stake through a combination of primary infusion and secondary buyouts for a cash consideration of Rs 70 crore.
Both these transactions are expected to be completed in the next 1-3 months, HUL said.
OZiva was launched in 2016 and has annual revenue runrate of over Rs 100 crore. It is a leading plant-based consumer wellness brand with products across lifestyle protein, hair and beauty supplements and women’s health.
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Whereas, Wellbeing Nutrition was launched in 2019 and has annual revenue runrate of over Rs 50 crore. Its product range includes Marine Collagen powder focused on need spaces such as beauty, everyday health, gut health and sleep.
Both OZiva and Wellbeing are digital first brands with omnichannel approach. Covid-19 pandemic accelerated sales for direct-to-consumer brands as online shopping gained momentum. Many FMCG companies have been making investments into direct-to-consumer brands to leverage the growth potential. For instance, Marico has acquired over 50% stake in D2C brands like Just Herbs, True Elements, ITC has made investments into ayurvedic and natural personal care startup Mother Sparsh.
Sanjiv Mehta, CEO and Managing Director, HUL said, “We are delighted to welcome OZiva and Wellbeing Nutrition to the HUL family and our portfolio of purpose-led brands. These strategic investments give us an entry into the fast-growing Health & Wellbeing category.”
HUL will help the brands further scale-up of these businesses through research and development, market development, distribution capabilities and Unilever’s global Health and wellbeing expertise .
Health and Wellbeing category is a fast-evolving category in India with a total potential market size of `30,000 crore with headroom to grow in categories around sleep and stress, women’s health, gut health, HUL said.
HUL said that it plans to build a portfolio of fast growing, lifestyle-led, science-driven brands underpinned by its capabilities of market development, distribution, research and development to scale and unlock value.
OZiva team led by Aarti Gill and Mihir Gadani and they will continue to operate all functions of the business. HUL will have representation on the board and will provide necessary capabilities and support to scale up.
Wellbeing Nutrition team is led by Avnish Chhabria who will continue to operate all functions of the business while HUL will be represented on the board.