Marico acquired a 54% stake in True Elements, a popular breakfast and snack brand. The company announced the news on 23 May but did not disclose the amount of the deal.
The multinational consumer goods company, Marico, acquired a major share of the popular breakfast and snacks brand. The company announced the major decision in a statement on 23 May.
It also stated that the deal happened through primary infusions and secondary brand buyouts. The company said that the leadership team of True Elements would build synergies and keep running the brand independently.
True Elements has more than 70 products ranging from Indian breakfast, western breakfast, snacks, and other items. The products are available on several online platforms that together account for over 90 websites. It is also present in more than 12,000 retail stores across the country.
As per the Business Standard, True Elements had a turnover of Rs 54.3 crore in the 2022 fiscal year. On the other hand, Marico had a total turnover of Rs 9,500 crore in the same year. It owns several popular brands such as Livon, Parachute, Saffola, and Hair & Care.
Impact of the acquisition on Marico
Marico said in a regulatory filing that the new development would help Marico expand its healthy foods brand and make its presence prominent by taking in a popular digital-first brand, True Elements. It will also help the company in its digital transformation initiatives and reach far and wide.
Saugata Gupta, Marico’s managing director and chief executive officer, told Business Standard that obtaining a major share of the popular brand is a significant step for their company in gaining more customers and expanding their brand in the healthy foods segment. He further states that gaining a major stake in the digital-first brand will positively impact the company’s portfolio. It will help them expand digitally and offline.
In a statement to Business Standard, Puru Gupta, chief executive officer and co-founder of HW Wellness Solutions, said that the company has delightfully accepted the acquisition and strategic partnership with Marico. The chief executive officer further said that they are focusing on the next phase of brand building and accelerating the company’s presence in newer households.
Marico stated that both parties mutually agreed on the pre-money enterprise valuation of the transaction of equity shares of HW Wellness. The acquisition comes as a positive change toward a better tomorrow for both the brands.
The partnership will benefit both parties in the long run and will help widen their customer base. As True Elements’ digital platform will help Marico in the digital transformation, its products will reach more households and expand its overall presence in the Indian market.