Godrej sells Bblunt to Mamaearth. It’s a strong brand.

Godrej Consumer Products (GCPL) is selling Bblunt’s consumer products and saloon business to Mamaearth.

Key points to note:

  • Acquisition is by Mamaearth’s parent Company Honasa consumer.
    • Bblunt’s products business will be completely owned and managed by Honasa
    • Bblunt’s saloon business will continue to operate as an independent entity
  • GCPL held 30% of Bblunt and balance 70% was owned by the promoters and investors.
    • Honasa is doing a complete buyout
    • GCPL had acquired 30% in 2013 for an undisclosed amount.
  • Total deal size is about Rs 134 crore of which GCPL will receive Rs 84.5 crore
    • Rs 25.7 crore for the stake sale
    • Balance Rs 58.8 crore for selling right to use Bblunt brand name
    • Deal is expected to close by March 14, 2022
  • Bblunt’s FY 21 revenues are reported to be Rs 50 crore. However, please note that FY21 was significantly impacted by Covid and saloons especially were heavily hit.

Personally, I believe Bblunt is a strong brand with a strong customer recall. Yes, the scale might be small in GCPL’s overall scheme, but then that’s true for any new brand that is incubated.

Maybe because the brand is tied to the saloon business, GCPL thought of moving out.

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