Marico, a leading FMCG major, made an announcement on Wednesday, July 26, stating that it has reached a definitive agreement to acquire a significant majority stake of 58% in Plix, a thriving direct-to-consumer (D2C) nutrition brand. The acquisition deal is valued at a substantial INR 369.01 Crores.
The consumer goods company, in a regulatory filing with the stock exchanges, disclosed that the cash-only transaction will be carried out in several installments or tranches.
On July 26, Wednesday, the company completed the acquisition of a 32.75% stake in Satiya Nutraceuticals, the parent company of Plix, through a combination of primary infusion and secondary buyouts. As a result, Marico has gained a controlling interest in Plix’s board, effectively making it a subsidiary of the FMCG giant.
Additionally, the acquisition of the remaining 25.25% of the paid-up share capital of the D2C brand is scheduled for completion by May 2025, subject to specific conditions. Moreover, the FMCG major has obtained the option to purchase the remaining 42% stake in Satiya Nutraceuticals at a later date.
Through this deal, Marico will be able to broaden its total addressable market in the nutrition segment and strengthen its presence in the health and wellness category. Concurrently, the plant-based D2C brand will capitalize on Marico’s extensive resources to enhance its offline presence in the coming years.
Saugata Gupta, Marico’s Managing Director and Chief Executive Officer, said, “In line with our strategy to accelerate our diversification journey, the investment in Plix not only expands our total addressable market in value-added wellness foods and nutrition segments, but also brings another digital-first brand with a distinct value proposition into our fold.”
In a joint statement, Plix’s cofounders Rishubh Satiya and Akash Zaveri said, “We are delighted to partner with Marico… In partnership with Marico, we will prioritise strengthening the brand’s equity and expedite growth by expanding into new categories and channels.”
Established in 2020 by Satiya and Zaveri, Plix Life is a Mumbai-based D2C startup that specializes in selling a wide range of plant-based nutrition products. Their product offerings include workout supplements, ingestible sunscreens, hair growth serums, and skincare products.
In December 2021, as part of its Series A funding round, the startup secured $5 million from Guild Capital and RPSG Ventures. Since its establishment, the company has demonstrated consistent growth in its turnover. During the financial year 2019-20, it reported a turnover of INR 10.92 Crores, which substantially increased to INR 41.58 Crores in FY21. Remarkably, the company concluded FY22 with an impressive turnover of INR 106 Crores.
Among others, the D2C brand competes with well-known names like OZiva, Setu Nutrition, and Fast&Up.
At the start of the year, Plix offered a diverse range of over 60 SKUs spread across six categories, available through its official website, various ecommerce marketplaces, and offline retail outlets. Impressively, the company has successfully served over 1.5 million customers across the country to date.
It is worth mentioning that this is not Marico’s initial foray into the D2C arena. Over the past few years, the FMCG giant has fortified its presence in the digital space through strategic acquisitions. Notably, Marico acquired a controlling stake in D2C Ayurveda brand Apcos Naturals in 2021 and a healthy snacks startup named True Elements in 2022.
In addition to its acquisitions, Marico has made notable investments in D2C startups like Beardo and Revofit. Furthermore, there were reports last year suggesting that the consumer goods company was exploring the possibility of establishing a Thrasio-style model for its D2C brands.
This move by Marico reinforces its commitment to expanding its presence in the health and wellness category, which has witnessed a surge of acquisitions by various FMCG players in the past year. Notably, ITC acquired Yoga Bar, while Hindustan Unilever invested in OZiva and Wellbeing Nutrition. Clearly, the health and wellness sector has become a competitive battleground for FMCG giants, and Marico’s recent actions reflect its active engagement in this dynamic market.
The focal point of this trend is the thriving health and wellness category, which has experienced significant growth in recent years, fueled by the widespread adoption of ecommerce and the emergence of numerous D2C startups.