Companies

HUL to acquire VWash from Glenmark Pharmaceuticals

Our Bureau Mumbai | Updated on March 23, 2020

HUL had posted a consolidated net profit of Rs. 1,444 crore in the year-ago period

23FMCG major Hindustan Unilever Limited (HUL) on Monday signed an agreement with Glenmark Pharmaceuticals Ltd to acquire its intimate hygiene brand VWash. With this acquisition, HUL will be foraying into the niche intimate hygiene category.

The proposed acquisition is in line with HUL’s strategy to enter fast-growing segments of the future in the premium beauty and personal care category, the company said.

“The acquisition of VWash gives us an entry into the currently underpenetrated and rapidly growing female intimate hygiene segment. The brand has a leadership position and fits well into the white spaces in our Beauty & Personal Care business. We look forward to completing the acquisition and strongly believe HUL is well positioned to further scale up this business, given the strength of our market development and distribution capabilities,” said Sanjiv Mehta, Chairman & Managing Director of HUL.

The transaction is subject to fulfilment of certain conditions and  is expected to be completed in the next few months. Glenmark will continue to manage the business until the transaction is completed, and will also continue to manufacture for HUL for an agreed period of time. The consideration has been split into two parts involving an upfront cash payment upon closing of the deal and a deferred consideration over the next three years, said HUL.

Brand & business

With this acquisition, HUL will be buying only the brand and the business. It will not be buying the manufacturing facility or taking over employees as a part of this transaction. The deal includes acquisition of intellectual property rights including trademarks, design and know-how related to the VWash brand.

“It is a very clear niche consumer need, but with a large potential to grow and with a large potential to lead market development. As India starts to get more affluent and India starts to understand the needs of consumers clearly, intimate hygiene is a category which is poised for growth and expansion,” said Srinivas Phatak, Chief Financial Officer, HUL

Published on March 23, 2020

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