Packaged consumer goods company Marico Ltd has signed a definitive agreement to acquire a majority stake in Satiya Nutraceuticals Private Ltd that owns plant-based nutrition brand Plix for ₹369 crore.
“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,” Saugata Gupta, MD and CEO, Marico, said in a filing with the exchanges.
The acquisition of 32.75% of the paid-up share capital of Satiya Nutraceuticals on a fully diluted basis, through primary infusion and secondary buyouts, was completed on 26 July 2023; acquisition of remaining 25.25% of the paid-up share capital of the company will be completed in one or more tranches by May 2025, subject to terms and conditions of the definitive agreements, the company said in its filing.
Marico has a right to acquire the remaining 42% in Satiya Nutraceuticals at the expiry of three years from execution date at a consideration to be determined at such time, the company said.
Satiya Nutraceuticals was co-founded by Rishubh Satiya and Akash Zaveri in 2018. It sells plant-based nutrition through its brand Plix.
The company participates in the growing health and wellness segments in India. It sells weight management, hair and beauty, sleep and lifestyle nutrition products. In FY23, the company reported a turnover of ₹106.43crore, up from Rs41 crore reported in the previous fiscal.
Satiya Nutraceuticals existing leadership team will continue to run the brand independently, Marico said.
While Plix is currently driving business via the direct-to-consumer channel and third-party e-commerce marketplaces, it plans to ramp up its offline presence over the next few years.
Marico Ltd., with a turnover of $1.2 billion in FY23 sells brands such as Parachute, Saffola, Pure Sense, Coco Soul, Revive, Set Wet, Livon, Just Herbs, True Elements and Beardo in India and overseas markets.