Hindustan Unilever Shares Gain as CCI Approves Acquisition of Uprising Science
Hindustan Unilever Limited (HUL), India’s largest fast-moving consumer goods (FMCG) company, witnessed a rise in its share price after the Competition Commission of India (CCI) granted approval for its acquisition of Uprising Science, the parent company of the beauty and personal care brand Minimalist.
On Monday, March 18, HUL shares surged 1.23% on the National Stock Exchange (NSE), reaching an intraday high of ₹2,198. Similarly, on the Bombay Stock Exchange (BSE), the stock climbed 1.24%, reflecting strong investor sentiment following the regulatory approval.
Jaipur-based Uprising Science is known for its extensive range of beauty, personal care, baby care, and hair care products under the Minimalist brand. With this acquisition, Company aims to strengthen its portfolio in the premium beauty and personal care segment, a rapidly growing market in India.
The Competition Commission of India (CCI) confirmed its approval in a public statement, highlighting that Hindustan Unilever would acquire 90.5% shareholding in Uprising Science, with the remaining 9.5% stake to be acquired within two years as per the share purchase and subscription agreement between the two companies.
Details of the Acquisition Deal
HUL had initially announced its plans to acquire Uprising Science in January 2025 through a share purchase and subscription agreement.
Under the terms of this deal:
- Company will acquire 90.5% of Uprising Science’s shareholding through a secondary buyout for a cash consideration of ₹2,670 crore.
- The transaction is based on a pre-money enterprise valuation of ₹2,955 crore for Uprising Science.
- Company will also make a primary infusion of ₹45 crore into the company.
- The remaining 9.5% stake will be acquired within two years from the completion of the initial transaction.
With this acquisition, Company aims to expand its presence in the premium skincare and personal care market, leveraging Minimalist’s strong brand positioning and direct-to-consumer (D2C) business model.
Market Presence and Brand Portfolio
Hindustan Unilever is one of India’s most influential FMCG players, with a vast portfolio comprising over 50 brands across various categories, including:
- Personal Care: Lakmé, Dove, Lux, Pepsodent, Closeup
- Home Care: Surf Excel, Rin, Wheel
- Food & Beverages: Knorr, Horlicks, Lipton, Kwality Wall’s
With the addition of Minimalist, Company is set to compete in the premium skincare segment against brands like L’Oréal, The Ordinary, and Mamaearth, all of which have witnessed tremendous growth in recent years.
Stock Market Reaction and Performance
Following the approval, Company shares witnessed an upward movement, reflecting investor optimism regarding the acquisition’s potential.
- At 9:46 AM on March 18, HUL’s stock was trading 0.87% higher at ₹2,193.15, in line with the broader market trend, as the NIFTY50 index was up 0.72%.
- On the NSE, the stock reached an intraday high of ₹2,198, while on the BSE, it rose 1.24%.
Analysts believe that the acquisition of Minimalist will further boost HUL’s revenues and increase its market share in the premium skincare and personal care industry.
Why This Acquisition Matters
The acquisition of Uprising Science and Minimalist marks a strategic move by Company to enter the high-growth, premium skincare segment, which has witnessed increased demand in India due to growing consumer awareness and preference for clean beauty products.
Key benefits of this acquisition include:
- Expansion into Premium Beauty and Skincare
- Minimalist, known as India’s answer to The Ordinary, has gained popularity due to its transparency-driven, ingredient-focused approach to skincare.
- The acquisition enables HUL to enter the science-backed, dermatologist-recommended skincare space, a category that is witnessing double-digit growth in India.
- Strengthening D2C (Direct-to-Consumer) Model
- Minimalist operates primarily through digital platforms, selling its products via its website, Amazon, Nykaa, and Flipkart.
- HUL’s acquisition will enhance its online presence and help it cater directly to consumers, reducing reliance on offline distribution channels.
- Leveraging HUL’s Distribution and Marketing Strength
- With HUL’s strong distribution network, Minimalist products can reach a wider audience in both tier-1 and tier-2 cities.
- HUL can utilize its marketing expertise to further boost Minimalist’s visibility and sales.
- Synergies with Existing Personal Care Brands
- HUL already owns successful personal care brands like Lakmé and Dove.
- The addition of Minimalist will allow HUL to compete in the premium and dermo-cosmetic category, where consumers prefer ingredient-conscious and clinically-backed products.
HUL’s Q3 Financial Performance (December 2024 Quarter)
Hindustan Unilever recently reported strong financial results for the quarter ending December 2024.
- Net Profit: ₹3,001 crore (up 19% YoY from ₹2,519 crore).
- Revenue from Operations: ₹15,195 crore (2% growth YoY from ₹14,928 crore).
This steady growth demonstrates HUL’s resilience and dominance in the FMCG sector, with the acquisition of Minimalist further enhancing its growth trajectory.
Industry Outlook: The Booming Skincare Market in India
The Indian skincare industry has grown rapidly in recent years, driven by factors such as:
- Increased consumer awareness about skincare ingredients and their effects.
- Growing preference for dermatologist-approved and clean beauty brands.
- Rising disposable incomes, leading to higher spending on premium skincare.
Minimalist’s focus on ingredient transparency and affordable, high-quality formulations has made it a trusted brand among skincare enthusiasts, making it a valuable addition to HUL’s portfolio.
Final Thoughts
The CCI’s approval of Hindustan Unilever’s acquisition of Uprising Science is a major step forward for the FMCG giant. By integrating Minimalist into its portfolio, HUL is making a strategic entry into the premium skincare market, which is experiencing unprecedented growth.
With its strong financial position, extensive distribution network, and marketing capabilities, HUL is well-positioned to scale Minimalist’s operations and make it a leading player in the Indian skincare segment.
Investors have responded positively to this development, with HUL shares rising on both NSE and BSE following the approval. Going forward, market watchers will be keenly observing how HUL leverages this acquisition to strengthen its dominance in India’s beauty and personal care sector.
