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Home Trending News 'I am willing to bet that Minimalist will die in next 3–5 years': Shantanu Deshpande about HUL-acquired brand

'I am willing to bet that Minimalist will die in next 3–5 years': Shantanu Deshpande about HUL-acquired brand

Shantanu Deshpande sparked controversy by predicting that skincare brand Minimalist will not survive even after Hindustan Unilever (HUL) acquisition.

ByIshita Ganguly
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Shantanu Deshpande says HUL-acquired Minimalist will cease to exist

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Shantanu Deshpande, founder and CEO of Bombay Shaving Company, sparked controversy by predicting that skincare brand Minimalist “will not survive”, even though Hindustan Unilever (HUL) has acquired it.

About Minimalist

Minimalist, one of India’s leading direct-to-consumer skincare companies, was bought by HUL in April for ₹2,955 crore. HUL currently has a 90.5% stake in Uprising Science, the brand’s parent company.

But Deshpande remarked that the brand won’t be able to survive any longer.

Shantanu Deshpande sparks controversy on LinkedIn

“I am willing to bet that the brand Minimalist will die (or cease to exist in any meaningful way) in the next 3-5 years,” Shantanu Deshpande boldly claimed on LinkedIn.

He explained that the founders exited after selling the company for a whopping Rs. 3000 crore. 

“Made 2000 cr for themselves, 1000 cr for others, and have left,” Deshpande said. “It was the right thing to do. I would have done the same,” he added.

The CEO who sponsored the deal has also left, and a new CEO is “at the helm of a struggling giant.”

“There will be a combination of 'focus on our core' + 'innovate and build ourselves for the consumer' that will further alienate an orphaned brand,” Shantanu Deshpande noted.

The  Bombay Shaving Company CEO further remarked that competition is quick to swoop in.

“Not hard to copy a copycat, frankly,” he said. “Competition will ensure premiumisation - another strategic lever for new CEO - will be tough. I myself have seen 10 pitch decks in this space.”

Deshpande claimed that there will soon be impatience around ROAS and eventually ROCE.

“And the plug will be pulled at some point, invariably,” he commented.

He further remarked that a brand at Rs. 400-500 Cr is profitable, but will likely become a “zombie” business and the shareholders being will be Rs. 3000 Cr poorer.

“But it's under 1% of HULs market cap so who even cares,” he concluded with expressing a hope that his prediction turns wrong.

“I so so so badly hope I'm wrong,” Deshpande said. 

Netizens respond

An individual commented, "HUL’s next phase is all about beauty. And while integrating acquisitions is extremely hard (a great book on this is Billion Dollar Lessons), it’s probable that they’ll try their best with this one."

"Things like these are discussed everyday on Thinkers’ Frequency. 8 AM. Haha! :)", he added.

"Minimalist is becoming another Unacademy," shared another user. "When founders leave, the brand’s story often leaves with them. I’ve seen this playbook repeat itself far too many times."

Another user remarked, "Not sure, if the brand will be dead or not. But differ that brand grows until the founder's existence."

Also read: ‘Need only today’s update; yesterday is gone’: Startup manager responds to employee’s sick leave request (startuppedia.in)

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Tags: Skincare