HUL to acquire majority stake in OZiva and 19.8% in Wellbeing Nutrition

Leading FMCG maker HUL announced the acquisition of a majority stake in OZiva and a 19.8 per cent equity in Wellbeing Nutrition with a total investment of Rs 335 crore

Leading FMCG maker HUL on Thursday announced the acquisition of a majority stake in OZiva and a 19.8 per cent equity in Wellbeing Nutrition with a total investment of Rs 335 crore to foray into the health and wellbeing segment.

Hindustan Unilever Limited (HUL) will acquire a 51 per cent stake in Zywie Ventures Private Ltd, which owns the brand OZiva, for a consideration of Rs 264.28 crore, making its entry into the health and wellbeing segment.

Besides, HUL has also announced the acquisition of a 19.8 per cent stake in Nutritionalab Pvt Ltd (Wellbeing Nutrition) for a cash consideration of Rs 70 crore.

Health and wellbeing segment is a fast-evolving category in India, which according to Euromonitor Data has a total potential market size of Rs 30,000 crore.

In OZiva, HUL will acquire a 51 per cent equity stake through a combination of primary infusion and secondary buyouts, said a statement from the FMCG major.

"The balance 49 per cent will be acquired at the end of 36 months based on pre-agreed valuation criteria," it said.

While the current OZiva team led by founders -- Aarti Gill and Mihir Gadani -- will continue.

"HUL will have representation on the board and will provide necessary capabilities and support to scale up," it added.

While in Wellbeing Nutrition, HUL would acquire a 19.8 per cent equity stake through a combination of primary infusion and secondary buyouts.

Over the cost of acquisition, HUL informed the bourses "Rs 70 crore for the acquisition of proposed stake".

Wellbeing Nutrition's product range includes melts, slow and marine collagen powder.

Wellbeing Nutrition team led by Avnish Chhabria will continue and HUL will have a representation on the board, it added.

"Both these transactions are expected to be completed in the next 1-3 months, subject to customary closing conditions," said HUL, which owns popular brands such as Lux, Rin, Wheel, Lakm, Brooke Bond and Horlicks.

Zywie Ventures, which owns OZiva had a turnover from operations of Rs 124.17 crore in FY22, while Wellbeing Nutrition's turnover in FY22 was at Rs 19.40 crore.

Commenting on the development, HUL CEO and Managing Director Sanjiv Mehta said: "These strategic investments give us an entry into the fast-growing health & wellbeing category. They align strongly with our mission to improve the health and wellbeing of consumers and empower people to take charge of their health through solutions that they can trust."

HUL is well-positioned to support further scale-up of these businesses through R&D, market development, distribution capabilities and Unilever's global health & wellbeing expertise," he added.

Aarti Gill and Mihir Gadani said: "As the next step in this journey, with OZiva's focus on innovation in the space of health and wellbeing and HUL's strong capabilities in category development and distribution, we believe we can together create a stronger purpose-led brand that brings us closer to our vision and touch more lives around the world."

Avnish Chhabria, founder & CEO, Wellbeing Nutrition, said: "We believe this partnership will help scale Wellbeing Nutrition by leveraging HUL's reach and capabilities and become a lifestyle wellness brand of choice.