NEW DELHI: In a significant restructuring exercise, Hindustan Unilever Limited (HUL) has decided to license its Lakme and Lever Ayush brands to its subsidiary, Lakme Lever Pvt Ltd, for its beauty and wellness services business. The Board of Directors of the company has approved this decision.
The Board approved the licensing of the Lakme and Lever Ayush brands to the separate subsidiary company, Lakme Lever, which will evaluate options towards developing a different business model for the two brands. This implies that HUL will not be directly involved in the services business of Lakme salons and Ayush therapy centres.
HUL's existing services model in the beauty and wellness services segment includes franchised Lakme Salons and Ayush therapy centers. But as per current business model, these contribute to an insignificant proportion of the company's turnover and profits.
According to a statement issued by Hindustan Unilever, growing disposable incomes and changing lifestyles have led to greater awareness about personal grooming, health and wellness - a trend that augurs well for the beauty and wellness services sector. "The key learnings are to execute dedicated teams for the services division, a statement issued by HUL said
The Board approved the licensing of the Lakme and Lever Ayush brands to the separate subsidiary company, Lakme Lever, which will evaluate options towards developing a different business model for the two brands. This implies that HUL will not be directly involved in the services business of Lakme salons and Ayush therapy centres.
HUL's existing services model in the beauty and wellness services segment includes franchised Lakme Salons and Ayush therapy centers. But as per current business model, these contribute to an insignificant proportion of the company's turnover and profits.
According to a statement issued by Hindustan Unilever, growing disposable incomes and changing lifestyles have led to greater awareness about personal grooming, health and wellness - a trend that augurs well for the beauty and wellness services sector. "The key learnings are to execute dedicated teams for the services division, a statement issued by HUL said
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