Honasa Consumer’s Rise Analyzed

Key Points

• Honasa Consumer’s stock jumped, fueled by a major acquisition.
• They bought a big stake in BTM Ventures, a men’s grooming brand.
• The deal cost ₹195 crore and boosts their growth potential.
• This expands Honasa’s reach into a popular men’s product area.
• Strong demand for Reginald Men’s sunscreens is a key driver.
• Analysts see this as a smart move to grow their product range.

The Acquisition

Honasa Consumer, known for brands like Mamaearth, saw its stock price increase significantly on Friday. This rise was driven by their plan to buy a large part of BTM Ventures, a company that makes men’s grooming products. This deal is a big step for Honasa’s future growth.

BTM Ventures owns Reginald Men, a brand that sells products like sunscreens and serums specifically for men. Honasa is paying ₹195 crore for 95% of the company. The remaining 5% will be acquired after a set period, based on agreed-upon values.

Reginald Men is doing well, generating over ₹70 crore in sales each year. Customers love their sunscreens – they’re the most searched sunscreen for men on Google in India. This shows there’s strong interest in men’s grooming products.

This acquisition helps Honasa grow its business in South India, where Reginald Men is very popular. It also fits with their strategy to offer more premium products and expand into new areas.

Honasa Consumer reported strong financial results, with a 16.5% increase in revenue year-over-year, and a 22.5% increase in like-for-like revenue growth (adjusted for Flipkart settlements). Their profits also improved, thanks to better product choices and brands becoming more well-known.

“Strategic acquisitions like this are vital for building a diversified and resilient business.”