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 acquisition in the pure play D2C space, would help it scale up presence in the sector and cater to specialised consumer needs.
A report by Avendus Capital said India’s D2C segment would be a $100 billion market by 2025, up from a negligible amount about two years ago. The sector has been seeing heightened investor activity in the past two years across categories such as personal care, packaged foods and wearables.
Conscious Chemist makes functional new-age skincare products, which it said are free from toxins, fragrances and chemicals.
Conscious Chemist co-founder Robin Gupta said: “We are confident this synergistic relationship will drive exponential growth (for the brand).”
This is Lotus Herbals’ third acquisition amid the pandemic. The first was a 100% acquisition of luxury ayurveda brand SoulTree in September 2020, followed by 32% stake buy in dermaceutical company Fix Derma last October.
Lotus, which has a retail presence in 1,50,000 outlets, competes with Hindustan Unilever’s Lakme and Pond’s brands, and brands from L’Oreal and Procter & Gamble, among others.