Lotus Herbals has obtained a 25% share in Conscious Chemist, a direct to consumer (D2C) skin-care brand, marking the company’s first foray into the fast-growing D2C market.
Lotus Herbals joint managing director Nitin Passi said: “Our strategic investment in this emerging brand takes forward our presence in the green beauty category, and is part of our overall M&A strategy.”
Passi said the strategic investment in Conscious Chemist, the company’s first pure-play D2C acquisition, will enable it to expand its presence in the sector and respond to specialized buyer needs.
According to research by Avendus Capital, India’s D2C business would be worth $100 billion by 2025, up from a trivial amount just two years ago. In the last two years, the sector has seen increased investor engagement in categories such as personal care, packaged foods, and wearables.
Conscious Chemist creates useful new-age skincare products that are free of toxins, scents, and chemicals, according to the company.
Conscious Chemist co-founder Robin Gupta said: “We are confident this synergistic relationship will drive exponential growth (for the brand).”
Lotus Herbals has made three acquisitions amid the pandemic. The first was a 100% purchase of luxury ayurvedic brand SoulTree in September 2020, followed by a 32% stake purchase in dermaceutical firm Fix Derma in October.
Lotus, which has 1,50,000 retail locations, competes with Hindustan Unilever’s Lakme and Pond’s brands, as well as brands from L’Oreal and Procter & Gamble.