Direct-to-consumer (D2C) skincare brand Minimalist, recently acquired by Hindustan Unilever (HUL) for Rs 3,000 crore, will leverage the FMCG firm’s vast distribution network to scale up both its domestic and international presence. The deal, which aligns with Minimalist’s expansion goals, will provide the resources needed for growth in manufacturing, research and development (R&D), and offline retail penetration.
Speaking to FE in his first media interaction post-acquisition, Minimalist’s co-founder Mohit Yadav outlined the company’s roadmap for expansion, emphasising plans to establish a new manufacturing plant in Jaipur to meet rising demand.
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Minimalist had been in discussions to raise $15-$20 million (approximately Rs 130-175 crore) last year to fund its growth initiatives, including a new plant, product R&D, and global expansion. However, the acquisition by HUL provided the brand with an even greater opportunity.
“We were looking to raise funds for international expansion and offline distribution in India, and around that time, conversations with HUL began. The deal with HUL will help us achieve both objectives more efficiently,” said Yadav.
Minimalist, known for its active ingredient-based skincare products, generated revenue of Rs 350 crore in FY24, with a profit of Rs 10.84 crore. Now, with HUL’s backing, the brand aims to accelerate its expansion across multiple fronts.
Having entered international markets in 2021, Minimalist has made significant inroads in regions such as Southeast Asia, the Middle East, the US and the UK. Currently, around 20% of the brand’s business comes from international markets, with Southeast Asia and the Middle East being key revenue drivers.
“We entered the UAE market within 18 months of launch, and now we have a presence in multiple countries, including Malaysia, Indonesia, Saudi Arabia and the UK, through a mix of online and offline channels,” Yadav shared.
Minimalist is available in brick-and-mortar stores in Malaysia and plans to extend its offline footprint in Indonesia and Thailand. In the US and UK, the brand sells its products primarily via Amazon, while in the UK, it has also partnered multi-brand beauty retailer Superdrug for offline distribution.
With HUL’s extensive global network, Minimalist aims to strengthen its standing in existing international markets while exploring new ones.
On the domestic front, Minimalist is gearing up to enhance its manufacturing capabilities by setting up a second production facility in Jaipur.
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