Marico has acquired 54 per cent stake in direct-to-consumer brand HW Wellness Solutions Private Limited for an undisclosed amount. Co-founded by Puru Gupta and Sreejith Moolayil, HW Wellness Solutions owns “True Elements”, a digital-first brand playing in the “healthy” breakfast and snacks segment in India.
Saugata Gupta, MD and CEO, Marico Limited, said, “True Elements is another step towards expanding our total addressable market in the healthy foods segment. We believe the ethos of the brand complements the purpose that drives Marico. The exciting range of products bring to life the rare and virtuous blend of quality, taste and health at the right price. This adds another digital-first brand in our portfolio, which not only has a distinct proposition but also exhibits strong fundamentals along with a growing digital and offline presence.”
Marico has been increasing its presence in the D2C brand markets over the last few years. This will be Marico’s third acquisition in the D2C space.
In the last two years, Marico has acquired a 60 per cent stake in Just Herbs, an organic cosmetic beauty brand as well as completely acquiring Beardo — a men’s grooming brand. As per their latest quarterly filings, Marico’s digital first acquisitions are expected to bring an accounting rate of return between ₹ 180-200 crore.
“We aim to accelerate our digital transformation journey by building a portfolio of at least three digital brands, either organically or inorganically, with a combined turnover of ₹ 450-500 crore by FY24. Beardo and Just Herbs are conscious steps in this direction,” the company had stated, in their Q4 FY22 report.
Puru Gupta, CEO and Co-founder, True Elements, said, “We are delighted to have entered a strategic partnership with Marico. As a brand, True Elements has always focused on staying true across all its touch points- including Purpose, People, Product and Planet, and we are glad to have found a partner who echoes this way of thinking. True Elements built its first phase of growth behind a portfolio of innovative Clean Food and building high consumer trust - while we continue to push the bar on those, our next phase will be focused on long-term brand building and accelerating our entry into newer households”
Sreejith Moolayil, COO and Co-founder, True Elements, said, “In addition to value systems, we see strong synergies with Marico in terms of our aspirations for the brand and are confident that this partnership will only make our promise of providing clean, healthy & no-nonsense food much stronger.”