- Honasa Consumer acquired a 58% stake in nutraceutical brand Fluence Pharma
- The deal marks the Mamaearth-parent's entry into India's Rs 16,000 crore beauty-from-within market
- Fluence Pharma's Cyclical Nutrition Therapy and dermatologist network influenced purchase
Honasa Consumer Ltd. mopped up 58% stake in Fluence Pharma, a nutraceutical brand, officially commencing its foray into the aforementioned segment, according to a press release issued on Tuesday. 'Nutraceutical', a portmanteau of the words 'nutritious' and 'pharmaceutical' refers to products that provide health benefits along with nutrition.
The company called the acquisition a "strategic expansion" that targets India's fast-growing 'beauty-from-within' segment which is currently valued at more than Rs 16,000 crore.
The parent company of the 'Mamaearth' brand has not revealed the financial information regarding the deal. The company noted Fluence Pharma's 'Cyclical Nutrition Therapy' and "strong dermatologist-led distribution network" as factors influencing its stake purchase.
ALSO READ: HUL Shares May Rally 21%, Says Motilal Oswal on Strong Volume Growth Outlook — Check Target Price
"While the last decade was shaped by topical actives, we believe the next decade will be defined by the powerful convergence of sciencebacked skin and hair care, and nutraceuticals," Varun Alagh, cofounder and chief executive officer of , Honasa Consumer, said.
The company will enter the category by establishing a dedicated subsidiary, Honasa Health Pvt. Honasa Consumer will use this new firm to scale a highly differentiated B2C nutrition portfolio by coupling Fluence's patented clinical science and existing positive standing with medical practitioners with its expertise in brand building, consumer insights, and digital-first distribution.
The subsidiary will be spearheaded by Dheeraj Nagpal, the CEO of Honasa Health, who has more than 15 years of consumer business experience. Nagpal cofounded the nutraceuticals brand Zingavita, where he handled brand strategy, marketing, and product innovation. Before this, he held leadership roles in firms such as Zomato and American Express, bringing experience in building and scaling new-age consumer businesses, the release stated.
"For the past ten years, we have focused rigorously on grounding our portfolio in science and earning the trust of the medical fraternity. To unlock the true potential of our proprietary science, however, we needed a partner who could take these clinical solutions to a wider consumer base. Honasa Consumer brings the perfect opportunity and infrastructure for us," Amit Bhansuri, CEO and co-founder of Fluence Pharma said.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.