Strategic Pivot: From Portfolio Revamp to Acquisition of Minimalist in Beauty Segments

Hindustan Unilever (HUL) has made several strategic moves in FY25 aimed at reshaping its portfolio for long-term growth. A major highlight was the acquisition of a 51 percent stake in the skincare and personal care brand Minimalist. Known for its clinical and ingredient-based approach to beauty, Minimalist has rapidly gained popularity among India’s digitally savvy consumers. With this move, HUL has reinforced its position in the fast-growing premium beauty segment, complementing its existing brands while tapping into younger, urban audiences seeking performance-led formulations.

Alongside this acquisition, HUL also made the decision to exit certain non-core segments. One of the major exits included the sale of its Pureit water purifier business. This divestment was in line with the company’s focus on consolidating its core operations and concentrating resources on high-margin, high-growth categories. By stepping away from the capital-intensive and relatively low-margin home appliance sector, HUL aims to streamline its product strategy and prioritize scalable and consumer-centric segments such as beauty, well-being, and nutrition.

Another important portfolio move involved the demerger of HUL’s ice cream business, which includes the Kwality Wall’s brand. This unit is expected to be spun off into a separate entity with its own listing, allowing it to grow with greater focus and operational independence. The ice cream business, although successful, operates in a different model with cold-chain logistics and seasonality factors that differ from HUL’s core FMCG offerings. The demerger reflects the company’s broader goal of unlocking value and simplifying the overall corporate structure.

These changes represent a strategic shift by HUL toward a more agile and focused business model, better aligned with changing consumer behaviors. The company's management has emphasized that this portfolio revamp is designed to support long-term innovation and sharpen execution in key growth categories. By investing in digital-first brands like Minimalist and exiting slower segments, HUL is preparing for a consumer market that values both functionality and convenience, with an emphasis on trust and transparency in brand messaging. Sources:Mint