Mamaearth Acquires Godrej’s BBlunt’s Products and Salon Business
Honasa Consumers, the parent company of the famous brands Mamaearth and The Derma Co., has acquired BBlunt - the hair care and styling products owned by business from Godrej Consumer Products. Under the terms of the deal, BBlunt, founded in 1998 by Adhuna and Ashoke Bhabani, whose chain of premium salons under Bhabani Blunt Hairdressing Pvt. Ltd., will be wholly owned and managed by Mamaearth while the salon business will continue to operate as an independent business.
Mamaearth, a direct-to-consumer (D2C) startup, has taken over Mumbai-based BBlunt from Godrej Consumer Products Limited (GCPL). The deal comes as salon businesses face a hard time amid the ongoing pandemic. Adhuna Bhabani and Avan Contractor will stay as creative directors while Spoorthy Shetty is appointed as the CEO. GCPL already held about 30% in BBlunt as it first invested in the company in 2013 while the founding team and other investors occupied the remaining shares.
Varun Alagh, co-founder and chief executive, said, “it is a complete buyout as the brand will leverage its existing D2C and eCommerce capabilities to grow BBlunt’s product business. The major products from the brand include shampoos, conditioners, women’s styling products, men’s styling products, and hair extensions.”
Mamaearth recently made a deal worth about Rs 130 crore from Sequoia . In a separate filing to the BSE on Monday, GCPL further revealed that it would receive a total of Rs 84.5 crore for its divestment of BBlunt, including Rs 25.7 crore for its stake in the company and Rs 58.8 crore from brand rights.
"The transaction is subject to a certain condition precedent and is expected to be completed on or before March 14, 2022," the filing said.
Explaining the rationale behind the deal, Alagh said, “Hair color and styling is a fiercely evolving business as Mamaearth has no presence. Brands like Bblunt have deep-rooted links with salons and are recommended by experts in the field. Adding such brands in the portfolio will add a new dimension to the existing bouquet of brands.”
Reportedly, the hair color and hairstyling market is currently worth about Rs 6,000 crore. In the future, Mamaearth plans to double down on marketing BBlunt products focusing on millennials. On the numbers, Bblunt clocked revenue of around Rs 50 crore in FY21, and the current annualized revenue run-rate is even higher.
Adhuna Bhabani, founder and director, BBlunt, said, “BBlunt and Honasa Consumer collaborate on a strong synergy and common brand values. Honasa is a strong player in the D2C/eCommerce space, and they realize a potential in the salon heritage,” said
It is well-known that Mamaearth is the largest brand under Honasa Consumers. Its known brands include Derma Co and Aqualogica. Mamaearth specializes in skincare and baby products and has products in the hair care segment. Alagh further added that Mamaearth would strengthen its presence in the beauty segment.
Spoorthy Shetty views the development as a significant milestone for Bblunt, calling it a win-win situation for both the companies to attain a future by collaborating synergies to broaden customers, products, technological and geographical base. She feels the acquisition will enable consumers to receive the same high-quality service they have come to expect.
International expansion
Mamaearth is expecting to grow beyond Indian orders as the company has made its debut into the Gulf Cooperation Council (GCC) region, starting with the UAE. Alagh said it recently entered Nepal, where it received good feedback. “Next, the company is targeting Bangladesh and Sri Lanka,” he added.
For the financial year 2020- 2021, the company recorded around Rs 460 crore. Alagh said he expected to close the ongoing financial year with at least double that revenue.