Business News/ Companies / News/  Marico picks up 54% in True Elements

Fast-moving consumer goods company Marico Ltd on Monday announced the acquisition of a majority stake in HW Wellness Solutions Pvt. Ltd, the owner of snacking brand True Elements for an undisclosed amount.

Marico purchased a 54% stake through primary capital infusion and secondary buy-outs in HW Wellness Solutions, the maker of Parachute oil said in a regulatory filing.

The transaction will expand Marico’s presence in the healthy foods segment and accelerate its transformation by adding another digital-first brand with a strong portfolio, the company said.

The move follows Marico’s 2021 investment in Apcos Naturals Pvt. Ltd, which sells skin and hair care products under the Just Herbs brand. In 2020, Marico fully acquired Beardo, a men’s grooming brand that sells beard oils, beard waxes, soaps and other grooming products. Beardo is now a Marico unit.

True Elements offers a range of products, including western breakfast such as oats, muesli, apart from Indian breakfast items such as poha and dosa, and other snacks. Currently, the brand is available in over 90 online platforms and in over 12,000 retail outlets.

True Elements plans to significantly ramp up its offline presence over the next few years. In FY21, the company reported 54.3 crore in sales. “Acquisition of equity shares of HW Wellness was completed at a mutually agreed pre-money enterprise valuation. The said pre-money enterprise valuation has not been disclosed herein due to reasons of confidentiality," Marico said.

True Elements is another step towards expanding our total addressable market in the healthy foods segment, said Saugata Gupta, managing director and CEO of Marico.

In an interview on 10 May, Gupta said, “We will continue to look for inorganic opportunities in the digital space—in fact, it’s a better opportunity than last year."

In its quarterly earnings call on 5 May, the company’s management said Marico is moving towards building a 450-500 crore portfolio of digital-first brands by FY24.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Updated: 23 May 2022, 11:13 PM IST
Next Story
Recommended For You
Get alerts on WhatsApp
Set Preferences My Reads Watchlist Feedback Redeem a Gift Card Logout