Glenmark Pharmaceuticals Ltd, a research-led global pharmaceutical company, announced that it has entered into an agreement with Hindustan Unilever Limited (HUL) for divestment of its VWash brand and other extensions.

WHO: Glenmark launched VWash, a liquid vaginal wash, as an OTC product in 2013. The company continued to invest in building the brand and established it as a market leader in the intimate hygiene category. Over the years, Glenmark launched multiple line extensions like VWash Wipes to expand the brand offering across different consumer needs.

Glenmark Pharmaceuticals Ltd. (GPL) is a global research-led pharmaceutical company with a presence across Generics, Specialty, and OTC business with operations in over 50 countries. Glenmark’s key therapy focus areas globally are respiratory, dermatology, and oncology. It is ranked among the top 80 Pharma & Biotech companies in the world in terms of revenue.

A subsidiary of Unilever, Hindustan Unilever Limited (HUL) is India’s largest Fast-Moving Consumer Goods company with its products touching the lives of nine out of ten households in the country.

WHY: Glenmark intends to further consolidate its position in the core therapy areas of respiratory, dermatology, and oncology globally. Glenmark’s OTC business will focus on its other leading brands like Candid Powder and Scalpe, and introduce new Rx to OTC switches.

IN THEIR OWN WORDS: “The decision to divest VWash brand is driven by the strategy to focus on our core therapy areas. While Glenmark has been able to establish VWash as a category leader, we are confident that HUL’s strong market presence and large distribution network will accelerate future growth of VWash,” Sujesh Vasudevan, President India Formulations, Middle East and Africa at Glenmark, said in a statement.

Commenting on the proposed acquisition, Sanjiv Mehta, Chairman & Managing Director of HUL, said, “The acquisition of VWash gives us an entry into the currently underpenetrated and rapidly growing female intimate hygiene segment. The brand has a leadership position and fits well into the white spaces in our Beauty & Personal Care business. We look forward to completing the acquisition and strongly believe HUL is well-positioned to further scale up this business, given the strength of our market development and distribution capabilities.”

DETAILS:

• According to The India Times, VWash is a leading player in the feminine intimate hygiene category with no sizable competitor.
• Under this agreement, the brand and other trademarks, copyrights, and know-how associated with Glenmark’s VWash business will be transferred to HUL.
• Glenmark will receive an upfront payment and royalty on sales for 3 years.
• No employees will be transferred as a part of this agreement.
• No manufacturing facility is being acquired. Glenmark will continue to manage the business until the transaction is complete and will continue to manufacture for HUL for an agreed-upon period of time.
• In 2018-19 the HUL’s beauty and personal care segment—that includes brands such as Lux, Dove, Sunsilk, and Lakme, among others—contributed to 46% of the company’s segment revenues ahead of its home care business. The category was 58% of segment profits for Hindustan Unilever Ltd in the financial year 2018-19, the company said in its annual report for the year.
• In India, the intimate hygiene category is a niche market. Category penetration stands at sub-8% in urban India, but is registering a strong double-digit growth, HUL said in an investor presentation.