Hindustan Unilever (HUL), one of Unilever’s strongest and largest operations, has identified building beauty and digital capacities as its top priority for future growth in India. HUL’s CEO, Rohit Jawa, emphasised the importance of digital capabilities for the company’s future success. The company recognizes the potential of digitalisation in transforming the value chain and engaging with partners more effectively. HUL has already made significant strides in this area, with the successful implementation of its in-house app, Shikhar. This app has revolutionised how HUL engages and conducts business with its partners, contributing to nearly 40% of all sales for the company.
The company has acquired stakes in two digital-first wellness startups, Zywie Ventures Pvt. Ltd and Nutritionalab Pvt. Ltd. These acquisitions align with HUL’s mission to improve the health and wellbeing of consumers and tap into the growing demand for holistic health and wellness products in India.
Zywie Ventures Pvt. Ltd, the maker of OZiva brand of lifestyle protein products, hair and beauty supplements, has received a 51% stake from HUL, with the remaining 49% to be acquired after three years. Nutritionalab Pvt. Ltd, which sells products under the Wellbeing Nutrition brand, has received a 19.8% stake from HUL. These acquisitions will allow HUL to expand its portfolio of fast-growing, lifestyle-led, science-driven brands in the health and wellbeing category.
HUL’s CFO, Ritesh Tiwari, stated that the company’s strong presence and capabilities in the beauty and personal care (BPC) segment make it a natural fit for the newly acquired wellness brands. HUL aims to scale up these businesses through its research and development, market development, and distribution capabilities, as well as leverage Unilever’s global health and wellbeing expertise.
RTM Watch’s Take
In navigating the dynamic landscape of India’s consumer market, Hindustan Unilever (HUL) sets its sights on the intersection of beauty, digital prowess, and holistic wellness. Recognizing the transformative power of digitalisation, HUL’s commitment to building digital capacities, exemplified by the success of the Shikhar app, underscores its adaptability to evolving market trends. The strategic acquisitions in the wellness sector, particularly the stakes in Zywie Ventures and Nutritionalab, reflect HUL’s forward-looking approach to cater to the surging demand for health and wellbeing products. As HUL integrates these digital advancements and wellness brands into its already robust beauty and personal care segment, it not only solidifies its position as a market leader but also demonstrates a commitment to enhancing the overall health and lifestyle of its consumers in the digital age.
