HUL seeks to expand market presence with pair of acquisitions in health and wellness segment

The acquisition by Hindustan Unilever Ltd (HUL) of the Oziva and Wellbeing Nutrition brands is unlikely to turn the needle for India's biggest packaged consumer goods maker, either in terms of size or scale of the business, just yet, analysts say.

The acquisitions, nevertheless, will strengthen HUL's intent of broadening its presence in the health and wellness segment and the company will likely use its vast distribution network and the expertise of parent Unilever to expand the newly acquired premium brands.

With the two purchases, HUL is taking control of companies that were selling their products only digitally.

HUL is widely expected to strengthen its offline presence through its own formidable distribution clout.

Besides, with the acquisition of digital-only brands, HUL also gets to target consumers in the higher-income category as well as the younger population.

Millennials, particularly Gen-Z, which are driving the market towards health supplements and wellness, would be priceless acquisitions via these companies for HUL.