Glenmark Pharmaceuticals HUL to acquire VWash
On 24 March 2020, Hindustan Unilever Limited (HUL) announced it has signed an agreement with Glenmark Pharmaceuticals Ltd to acquire its intimate hygiene brand VWash.
Glenmark launched VWash in 2013, and the brand has established itself as the market leader in the category of female intimate hygiene, backed by a solid product proposal, good customer endorsements, and sustained investment in brand building.
The deal covers the acquisition of intellectual property rights including trademarks, design and know-how related to the VWash brand. The consideration has been divided into two parts involving an upfront cash payment upon closing of the deal and a deferred consideration over the next three years. The transaction is subject to fulfilment of certain conditions, and both parties would be working together to complete this in the next few months. Glenmark will continue to manage the business till the transaction is completed, and will also continue to manufacture for HUL for an agreed period of time.
The proposed acquisition is consistent with HUL's strategic plan to join the fast-growing segments of the future in the luxury category Beauty & Personal Care. According to, HUL chairman & managing director Sanjiv Mehta. "The VWash acquisition gives HUL an entrance into the currently under-penetrated and increasingly increasing segment of intimate grooming for women. The brand has a leading role in our Beauty & Personal Care business and fits well into the white spaces. We look forward to completing the acquisition and firmly believe that, considering the quality of our market growth and distribution capabilities, HUL is well placed to further grow this sector.”
The company's beauty and person care segment in 2018-19–which includes brands such as Lux, Dove, Sunsilk, Lakme among others–contributed to 46 % of the company's segment revenue ahead of its home care market. The group received 58 % of Hindustan Unilever Ltd's segment income in the 2018-19 financial year, the company said in its annual report for that year.
India's intimate hygienic industry is a niche one. Class penetration in urban India stands at sub-8 %, but is recording a strong double-digit rise, the company said in a presentation to investors. It has less industry rivals, too.
The brand will also give HUL further access in to the pharmacy channels—a key trade and sales route. “Company will build awareness, drive penetration, and will utilize distribution muscle and enhance play in chemist channels which is working out well for us through the GSK acquisition.
VWash, launched by Glenmark in 2013; the brand has been the market leader in the category of female intimate hygiene.
The acquisition comes after the National Company Law Tribunal cleared the mega merger between GlaxoSmithKline Consumer Healthcare (GSKCH) and Hindustan Unilever in February 2020 which is expected to solidify its position on the packaged food market in the country.
HUL acquired the Aaditya ice cream brand from Karnataka in 2018 and added the Indulekha hair care brand to its portfolio in 2015.
