Marico To Take 100% Control Of True Elements With Additional 46% Stake Buy

SUMMARY

Marico said it would acquire the stake from the founders and other shareholders of HW Wellness for INR 138 Cr

In 2022, the FMCG giant acquired a 53.98% stake in HW Wellness via primary infusion and secondary buyouts to scale its presence in healthy breakfast and snacking categories

Marico acquired majority stakes in D2C brands like Beardo, Just Herbs, among others, over the past few years

FMCG major Marico is acquiring an additional 46.02% stake in HW Wellness Solutions, the parent of omnichannel healthy snacks startup True Elements, to increase its shareholding to 100%.

In an exchange filing, Marico said it would acquire the stake from the founders and other shareholders of HW Wellness for INR 138 Cr. The acquisition is expected to be completed by September 30.

Notably, Marico acquired a 53.98% stake in HW Wellness in 2022 via primary infusion and secondary buyouts to scale its presence in healthy breakfast and snacking categories.

Founded in 2013 by Puru Gupta and Sreejith Moolayil, True Elements is a Pune-based food brand specialising in healthy breakfast and snacks including oats, muesli, granola, seeds, millet, and snack bars. Last year, cricketer Rohit Sharma launched a sub-brand with the company called RS by True Elements.

On the financial front, Marico said that True Elements’ total revenue jumped more than 115% to INR 164.38 Cr in FY25 from INR 76.42 Cr in the previous fiscal year. Meanwhile its net loss stood at INR 23 Cr in the fiscal under review, 44% increase from INR 15.9 Cr in FY24.

Marico, a leading homegrown FMCG brand with presence in more than 25 countries, has been aggressively acquiring digital-first brands to strengthen its portfolio and offer differentiated offerings to its customers. It has acquired majority stakes in D2C brands like Beardo, Just Herbs, among others, over the past few years.

Marico is not the only FMCG major to take the acquisition route for digital-first D2C brands. Its peers like Hindustan Unilever Limited (HUL) and ITC have also been on an acquisition spree.

Earlier this year, HUL acquired D2C brand Minimalist in INR 2,670 Cr deal. Similarly, ITC increased its stake in D2C natural baby care brand Mother Sparsh Baby Care to 100%.