To support its health and wellness strategy, HUL buys stakes in OZiva and Wellbeing Nutrition
- ByStartupStory | December 9, 2022
Leading FMCG producer HUL stated on Thursday that it would invest a total of Rs 335 crore in the health and wellness sector by acquiring a majority position in OZiva and 19.8% of the equity in Wellbeing Nutrition. Hindustan Unilever Limited (HUL) will enter the health and wellbeing market by purchasing a 51% ownership in Zywie Ventures Private Ltd, which owns the OZiva brand, for a sum of Rs 264.28 crore.
HUL has additionally disclosed the purchase of a 19.8% share in Nutritionalab Pvt Ltd (Wellbeing Nutrition) for a cash payment of Rs 70 crore. According to Euromonitor Data, the health and wellbeing area in India has a total potential market value of Rs 30,000 crore.
According to a statement from the FMCG giant, HUL will purchase a 51% equity holding in OZiva through a combination of main infusion and secondary buyouts.
According to previously agreed-upon valuation criteria, the remaining 49% will be bought at the end of the 36-month period, it stated. Aarti Gill and Mihir Gadani, the current OZiva team’s founders, will remain in charge. HUL will be represented on the board and will offer the tools and assistance required to expand, it was said. HUL would purchase a 19.8% equity stake in Wellbeing Nutrition through a combination of primary infusion and secondary buyouts.
HUL informed the stock exchanges that the proposed share acquisition would cost “Rs 70 crore.”The product line offered by Wellbeing Nutrition consists of melts, slow, and marine collagen powder.
Avnish Chhabria’s Wellbeing Nutrition team will remain, and HUL will have a representative on the board, it was noted. According to HUL, which owns well-known brands like Lux, Rin, Wheel, Lakm, Brooke Bond, and Horlicks, “Both these deals are likely to be finalised in the next 1-3 months, subject to usual closing conditions.”
While Wellbeing Nutrition had a sales of Rs 19.40 crore in FY22, Zywie Ventures, the owner of OZiva, had a turnover from operations of Rs 124.17 crore.
Sanjiv Mehta, CEO and Managing Director of HUL, offered the following statement in response to the news: “These strategic investments give us an entry into the fast-growing health & wellbeing category and strongly align with our mission to improve consumer health and wellbeing and empower people to take control of their health through solutions that they can rely on.”
HUL is in a good position to help these businesses scale up further because to its skills in R&D, market development, distribution, and Unilever’s global health & wellness experience “Added he.
As the next step in this journey, Aarti Gill and Mihir Gadani stated: “We believe that together with HUL’s strong capabilities in category development and distribution and OZiva’s focus on innovation in the space of health and wellbeing, we can jointly create a stronger purpose-led brand that brings us closer to our vision and touches more lives around the world.”
Wellbeing Nutrition’s founder and CEO, Avnish Chhabria, stated: “By utilising HUL’s resources and reach, we think that this relationship would enable Wellbeing Nutrition to grow and establish itself as a preferred lifestyle health brand.
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