HUL to Acquire 51 pc Stake in OZiva and 19.8 pc in Wellbeing Nutrition

Hindustan Unilever Limited (HUL) announced the acquisition of a majority stake in OZiva and a 19.8 percent equity in Wellbeing Nutrition with a total investment of Rs 335 crore to foray into the health and wellbeing segment.

HUL will acquire a 51 percent 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 also announced the acquisition of a 19.8 percent 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 percent equity stake through a combination of primary infusion and secondary buyouts, said a statement from the FMCG major.

“The balance 49 percent 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 percent 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 Rs 19.40 crore.

“These strategic investments give us an entry into the fast-growing health and 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,” said Sanjiv Mehta, CEO and Managing Director, HUL.

“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.

“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,” stated Aarti Gill and Mihir Gadani, Founders, OZiva.

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