Hindustan Unilever Limited (BSE:500696) has held talks to acquire plant-based supplement brand Oziva (Zywie Ventures Private Limited), multiple people in the know said, signalling the possible start of a wave of consolidation in the direct-to-consumer (D2C) brand market. Sources told it is hoping for a valuation of INR 4,000 million - INR 5,000 million, which could be a stumbling block for a deal with HUL. Oziva had approached other consumer goods companies as well, including Dabur India Limited (NSEI:DABUR) and Tata Consumer Products Limited (NSEI:TATACONSUM), but those discussions also stalled over a valuation mismatch.

They have been in advanced discussions with HUL, but their sales numbers have dropped from the peak which may impact the valuation and overall transaction,” said a person familiar with the talks.