Hindustan Unilever to acquire Mosons’ Indulekha and Vayodha hair care brands

Hindustan Unilever Limited (HUL) has agreed to acquire natural hair care brands Indulekha and Vayodha from Mosons Group for Rs 3.3bn ($49.6m).

The transaction includes a deferred consideration of 10% based on the brands’ domestic earnings every year, payable annually for a five-year period starting from 2018 financial year.

The transaction is subject to regulatory approval and certain customary conditions. Over the next few months, the companies will work together to complete the transaction.

Until the completion of the acquisition, Mosons will continue to manage the business of the brands.

HUL CEO and managing director Sanjiv Mehta said: "The acquisition of Indulekha 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."

Launched in 2009, Indulekha is an Ayurvedic hair oil. Over the years, the brand gained support from endorsements and sustained investments in brand building.

Indulekha Bringha Oilwas re-launched in 2014 along with a comb like cap which enables direct application of the oil onto scalp.

The brand is claimed to have a strong presence in the Indian states of Kerala, Tamil Nadu and Karnataka.It has recently entered into Maharashtra.

According to HUL, the brand reported revenue of Rs1bn ($15m) and an EBITDA margin of around 30% for the year ending March 2015.