Hindustan Unilever (HUL) has completed the formalities for its acquisition of Mosons Group’s hair care brand Indulekha for Rs330 crore, according to a report published by the Business Standrad. The final sale price is some Rs200-300 crore below the brand’s initial valuation of Rs600 crore.

Under the agreement, Mosons Group will continue to manufacture Indulekha’s famous hair oil, shampoo and skin care products for a period of one year on a contract basis. Indulekha and Varodha products will be sold by Hindustan Unilever, who has also acquired the brand’s intellectual property and technical expertise.

Once production is transferred to HUL, Mosons Group will receive 10 percent of sales revenue for five years. Mosons Group is prohibited from manufacturing similar personal care products, with the exception of coconut oil.

Mosons Group is said to be planning to launch a new brand, Indian Woman, spanning cleaning products and laundry detergents made by small units of women.

The acquisition value of Indulekha is a record for a Keralan-based brand. Indulekha is said to have achieved revenue of Rs100 crore last year.