Hindustan Unilever Ltd (HUL) informed BSE on Thursday its completion of formalities required, for the agreement dated December 17, 2015, to acquire Masons Group's flagship brand, Indulekha. Total consideration is around Rs 330 crore.
HUL will now sell hair oil, shampoo, skin care oil, face pack, cream, jasmin, sandal soap products under the brand Indulekha and Vayodha. As per the agreement, the factory of Moson's Group in Talassery will manufacture it for one year, on contract basis.
The acquisition was of brand and also Intellectual Property and technical knowhow and HUL, with this, can manufacture these products in its own facility. Once HUL starts production, from 2017-18, 10 per cent of the sales revenue would be given to Mosons Group for five years.
The acquisition value is a record for any brand sold out from Kerala.
The last big acquisition was Godrej acquiring Goodnight brand from Trans Electra Domestic Products in 1994.
Under the agreement, Mosons Group should not manufacture such personal care products. However, it could continue with manufacturing and export of coconut oil and construction business. Morover, the Group is planning to estabhlish a new brand named Indian Woman, to sell various products made by women in small units, starting from dishwash and soap powder and toilet cleaner among others.
The sales revenue of Mosons Group including for Indulekha products was Rs 100 crore at the time of sales. It has been sold in Kerala, Karnataka, Tamil Nadu, Maharashtra and Middle East countries.
The name Mosons was coined by the company's founder M P Anvar, to mean Moosa and Sons, in memorial of his father Moosa.
Indulekha brand was started in 2009 and has reached this feat in six years.