HUL’s Beauty Buyout: Will Minimalist’s Magic Go Missing?

Image Source: Startup Pedia

In a public LinkedIn post, Bombay Shaving Company CEO Shantanu Deshpande stunned the startup community by foretelling the death of Minimalist, the skincare company, within 3 to 5 years. His remark is months after Hindustan Unilever Limited (HUL) bought 90.5% of Uprising Science, the parent company of Minimalist, for about ₹2,706 crore.

Main points of Deshpande's criticism

The founders have departed after the acquisition, reportedly making ₹2,000 crore from the transaction

The CEO who supported the takeover has also stepped down, and the brand is no longer under its initial management

Deshpande opines that the brand will lose its identity in HUL's heritage model

Market forces and competitive pressure

Deshpande warns that Minimalist's product line is easily imitable in an over-saturated skincare market

He predicts a battle ahead for Priya Nair, the new CEO of HUL, who will assume office on August 1

Financial impatience with regard to ROAS and ROCE might make the brand take a backseat

Brand direction and future trajectory

Minimalist, a successful ₹400–500 crore D2C brand, can be turned into a "zombie business" by corporate owners

Deshpande's blog post sparked debate on the internet, with some defending HUL's scale and others echoing concerns over founder-led dilution

In spite of the dismal prediction, Deshpande hoped that his prophecy is wrong

Sources: Business Today, Hindustan Times, LiveMint, Economic Times, Marketing Mind