Hindustan Unilever signed agreement with Mosons Group to acquire Indulekha

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Who: Hindustan Unilever
What: Signed agreement with Mosons Group
When: 17 December 2015
Why: To acquire Indulekha

Hindustan Unilever (HUL) on 17 December 2015 announced that it signed an agreement with Mosons Group to acquire its flagship brand Indulekha for 330 crore rupees.

The proposed acquisition is in line with HUL’s strategic intent to strengthen its leadership position in Personal Care.

Highlights of the deal

The deal includes the acquisition of the trademarks Indulekha and Vayodha, intellectual property, design and knowhow.

HUL will pay Mosons Group 300 crore rupees upon closing of the transaction and a deferred consideration of 10 percent on the domestic turnover of the brands each year, payable annually for a five-year period commencing Fiscal Year 2018.

Mosons will continue to manage the business until the completion of the transaction.

About Indulekha

Indulekha was first launched in 2009 as 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 re-launched in 2014 with a unique comb like cap that aids direct application of oil on the scalp.

The brand has a strong presence across Kerala, Tamil Nadu and Karnataka. It recently forayed into Maharashtra.

It had a turnover of 100 crores rupees and an EBITDA margin of around 30 percent for the year ending March 2015.