In his post, Deshpande predicted that Minimalist, one of India’s major skincare brands, recently acquired by Hindustan Unilever, “will not survive or remain relevant in its current form in the next 3-5 years.”
He cited concerns over founder departures and the challenges of post-acquisition integration. “They (founders) sold for a whopping 3000 cr, made 2000 cr for themselves, 1000 cr for others, and have left. It was the right thing to do. I would have done the same. The CEO who sponsored the deal is also now gone. A new CEO is at the helm of a struggling giant,” the post read.
He questioned whether brands like Minimalist can sustain momentum after being absorbed by larger consumer goods companies, adding that competition is quick to swoop in.
HUL, one of India’s leading fast-moving consumer goods (FMCG) companies, announced in April that it will acquire a 90.5% stake in Minimalist parent Uprising Science at Rs 2,706.44 crore.
The post stirred a debate, with some defending Minimalist, highlighting its Rs 3,000 crore valuation and rapid growth. In comments on the post, people argued that acquisition by a major player could enable new resources and markets. However, others were sceptical and in agreement with Deshpande, referencing past cases where founder-led startups were sidelined after being acquired.
The consumer major had a surprise change of leadership earlier this month, with chief executive and managing director Rohit Jawa stepping down. He took the helm in June 2023 and was set for five years in the CEO office, but his stint ended much earlier than anticipated. His was one of the shortest CEO tenures in the company’s history.
Priya Nair, president of Unilever’s global beauty & wellbeing division, will replace Jawa from August 1. She will be the first woman to lead HUL in its nearly 90-year history.
Before Minimalist, HUL had been hunting in the direct-to-consumer (D2C) space, acquiring fast-growing digital-first brands. It added Oziva and Wellbeing Nutrition to its brand to expand its reach in the premium and health-focussed D2C sectors.
