Honasa Scraps INR 135 Crore Fluence Pharma Deal Over Key Conditions

Honasa Consumer, a household name in the cosmetics and personal care industries, has scrapped plans to acquire 58% of the shares in Fluence Pharma, a nutraceuticals company, for INR 135 crore.

According to media sources, the deal was shelved because specific closing criteria outlined in the share purchase agreement were not met. An exchange filing by Mamaearth's parent company stated that the sale had to be called off because Fluence Pharma had failed to meet the closing criteria outlined in their share purchase agreement. The organisation did not specify which conditions were still unfulfilled.

Honasa Remains Committed to its Nutraceuticals Strategy

In June, the acquisition was greenlit by Honasa's board of directors, with the proposal to purchase the 58% shareholding from the current shareholders of Fluence Pharma for INR 135 crore. Under normal circumstances, the secondary deal should have closed within eight weeks. Over the next five to seven years, the business had also intended to purchase the remaining 42% ownership through two tranches of secondary transactions. Even though the deal fell through, Honasa has stated that it is still dedicated to its strategy of nutraceuticals.

In addition, it will keep looking for ways to grow the category's consumer-focused business, both organically and inorganically. The planned merger would have brought together Honasa's consumer brands, distribution, and marketing skills with Fluence Pharma's 3,000+ dermatologists and trichologists as well as their proprietary cycle nutrition therapy.

As more and more people look for holistic approaches to their hair and skin problems, Honasa sees the nutraceuticals industry as a promising new area for expansion, with a potential market size of about INR 16,000 crore. The acquisition and the establishment of a wholly owned subsidiary, Honasa Health, to oversee the nutraceuticals business's end-to-end B2C operations were both approved by Honasa's board of directors in June.

Next Business Approach of Honasa

The acquisition was a component of Honasa's five-year Honasa 3.0 plan, which intends to increase EBITDA margin to over 15% and more than quadruple revenue to more than INR 5,500 crore by FY31. Among Honasa's goals for the future is the expansion of its offline distribution network from its current level of over 1.2 lakh shops to over 3 lakh. A number of other growth engines will be developed, allowing the company to become less reliant on its main brand Mamaearth. To broaden its offerings in men's personal care, skincare, and haircare, Honasa has bought Dr Sheth's, BBlunt, and Reginald Men in the past.

Last year, it also bought a small piece of the oral care company Fang. In addition to Mamaearth, Honasa offers skincare products under the Aqualogica and The Derma Co brands, as well as colour cosmetics under the Staze Beauty label and fragrances under the FIKN label. Regarding the financial front, Honasa's consolidated net profit more than quadrupled from INR 41.3 crore in the year-ago period to INR 90.5 crore in the quarter ended June 2026. The company had its best quarterly sales and profit ever, with operating revenue rising 27% to INR 755.9 crore from INR 595.3 crore a year ago.