HUL, other FMCGs in acquisition talks with Oziva: Report

Hindustan Unilever (HUL) is in talks with Oziva for a strategic acquisition of the plant-based nutrition brand.

The development, first reported by The Economic Times, comes at a time when niche brands—which saw accelerated growth amid the COVID pandemic-led online shopping boom—are now struggling to grow during a funding winter.

According to the report, the nutrition brand is also in talks with Dabur and Tata Consumer for a possible acquisition.

A query shared with Oziva did not elicit any response at the time of publishing this story.

Oziva was founded by Aarti Gill, an MBA graduate from INSEAD, along with Mihir Gadani in 2016. The direct-to-consumer (D2C) brand operates in nutrition categories, including immunity boosters and organic plant protein.

Last year, as the pandemic shopping boom started to subside, the brand introduced products in the clean beauty category. Oziva also started making inroads in physical retail stores by launching sachets of its products, priced between Rs 15 and Rs 20 to appeal to a wider consumer base.

“Our current price points are slightly premium due to the quality. But we want everyone to be able to afford our products,” Aarti told YourStory in July 2021. However, growing digital marketing costs and investors backing firms with caution has been hard for many direct-to-consumer brands.

According to Abneesh Roy, Executive Director at Nuvama Institutional Equities, Oziva could be valued at Rs 400-Rs 500 crore.

“We like HUL’s strategy of acquiring small companies in spaces where it doesn’t have a presence. HUL ramped up Indulekha, V Wash, sharply post-acquisition,” says Abneesh.

Earlier in November, clothing firm Bewakoof Brands Pvt. Ltd. got acquired by Aditya Birla Fashion and Retail Ltd. (ABFRL) in a distress sale. Moreover, Marico has been actively acquiring more than 50% stake in D2C brands, including Beardo, Just Herbs, and True Elements.