Honasa Consumer Strengthens R&D with Acquisition of Cosmogenesis Cosmetics

Honasa Consumer Limited, a leading digital-first house of beauty and personal care brands, announced a strategic move to bolster its research and development (R&D) capabilities. The company has entered an Asset Purchase Agreement with Cosmogenesis Cosmetics, a Thane, Maharashtra-based cosmetics R&D consultancy and manufacturing firm.

Acquisition Details

The agreement entails the acquisition of specific assets and intellectual properties from Cosmogenesis Cosmetics. This acquisition falls outside the purview of related party transactions, ensuring complete transparency. The total cash consideration for the identified assets is ₹4 crores, payable upon closing.

Expanding R&D Capabilities

This strategic acquisition aligns with Honasa Consumer’s commitment to continuous innovation and product development. The acquired assets include:

• Over 4,000 Formulations: Honasa Consumer gains access to a vast library of over 4,000 formulations within the beauty and personal care category. This extensive repository significantly broadens their product development scope and accelerates their ability to bring new and exciting offerings to the market.
• R&D Lab and Manufacturing Expertise: The acquisition encompasses Cosmogenesis Cosmetics’ R&D lab, equipped with the expertise and resources to support ongoing formulation development. Additionally, a small manufacturing facility is included, potentially providing Honasa Consumer with greater control over the production process for specific products.

Overall Benefits

This strategic acquisition is expected to yield several benefits for Honasa Consumers:

• Enhanced Product Innovation: The influx of new formulations and R&D expertise will fuel Honasa Consumer’s innovation pipeline, enabling them to develop cutting-edge products that cater to evolving consumer preferences.
• Faster Product Launches: Access to a vast library of formulations can expedite the product development process, allowing Honasa Consumer to bring new products to market more quickly and efficiently.
• Potential Production Advantages: The acquisition of a manufacturing facility, while small, offers Honasa Consumer the potential to explore new avenues for production control and potentially increase responsiveness to market demands.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.