(Reuters) -Consumer firm Hindustan Unilever said it will buy a majority stake in the ‘Minimalist’ skin care brand and reported a marginal rise in third-quarter profit on Wednesday, lifted by festive season demand and an ongoing recovery in rural markets.
The company said it will acquire a 90.5% interest in Uprising Science, which operates under the brand ‘Minimalist’, in a 29.55 billion-rupee ($342.3 million) deal, including debt.
The Indian unit of UK’s Unilever also reported a 0.2% increase in its profit before exceptional items and tax to 34.69 billion rupees for the three months ended Dec. 31.
Indians celebrate the festivals of Diwali and Christmas during the October-December quarter, resulting in higher volume growth amid a slowdown in urban consumption, which hit a two-year low in November.
Rural demand has outpaced urban markets for the last four quarters due to above-average monsoons and state-led welfare schemes, analysts have said.
Hindustan Unilever gets roughly 40% of its overall sales from rural markets.
The company, known for its ‘Dove’ soap and ‘Surf Excel’ detergent brands, reported a 2% jump in revenue to 151.95 billion rupees, aided by price hikes and stable demand during the festive season.
($1 = 86.3170 Indian rupees)
(Reporting by Ananta Agarwal in Bengaluru and Praveen Paramasivam in Chennai; Editing by Sonia Cheema)
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