HUL to acquire hair-care brand Indulekha for Rs 330 crore

Pic for representational purpose

Zee Media Bureau

New Delhi: In line with its strategic move to strengthen its position in the personal care section, Hindustan Unilever Limited has signed an agreement with Mosons Group to acquire its hair-care brand 'lndulekha'.

The deal, worth Rs 330 crore, includes the acquisition of the trademarks 'lndulekha' and 'Vayodha', intellectual property, design and knowhow.

The deal amount is, however, payable upon closing of the transaction and a deferred consideration of 10 percent on the domestic turnover of the brands each year, payable annually for a 5 year period commencing FY18.

The acquisition of lndulekha brings to HUL a premium brand with strong credentials around Ayurveda that will complement our existing portfolio and strengthen our presence in the Hair Care category. We are excited by the strong equity that the brand enjoys among consumers and see an opportunity in leveraging it's 'naturals' and therapeutic positioning," Sanjiv Mehta, CEO & Managing Director of HUL, said in a release.

Indulekha was launched in 2009 as a premium ayurvedic hair oil and had a turnover of Rs 100 crore in the previous financial year ended March.

The company has a strong presence in Kerala, Tamil Nadu and Karnataka.