Hindustan Unilever, a major FMCG company, entered the health and wellbeing market by making strategic investments in Nutritionalab’s Wellbeing Nutrition and OZiva from Zywie Ventures. HUL would pay ‘264 crore in cash to acquire a 51% interest in OZiva through a combination of primary infusion and secondary buy-outs. HUL stated that the remaining 49% will be bought after 36 months based on previously agreed-upon valuation standards. HUL would pay Rs 70 crore in cash to acquire a 19.8% interest in Wellbeing Nutrition through a combination of main infusion and secondary buyouts.
According to HUL, both of these transactions should be finished within the next three to six months. OZiva was introduced in 2016 and currently generates over Rs 100 crore in income annually. It is a top plant-based consumer wellness brand that offers goods for women’s health, hair and beauty supplements, and lifestyle protein.
While Wellbeing Nutrition, which was introduced in 2019, has a revenue run rate of above Rs 50 crore annually. Marine Collagen powder from its product line is targeted at needs in areas including sleep, gut health, daily health, and beauty.
OZiva and Wellbeing are both omnichannel, digital-first brands. As internet shopping grew in popularity, the Covid-19 epidemic drove sales for direct-to-consumer brands. To maximize the development potential, many FMCG businesses have invested in direct-to-consumer brands. For instance, ITC invested in the ayurvedic and natural personal care firm Mother Sparsh, while Marico purchased more than 50% of the stock in direct-to-consumer brands including Just Herbs and True Elements.