Zydus Wellness said it will enter into a definitive agreement to acquire Naturell, the maker of Ritebite Max Protein bars and snacks for Rs 390 crore in an all cash deal.
The maker of Complan and Glucon-D said the acquisition aligns with its vision of expanding its footprint in the healthy snacking segment. Naturell, which started its operations in 2003, entered into healthy snacks in 2007 and had annual revenues of Rs129 crore in FY24.
“We believe that this acquisition is an opportunity to expand our portfolio by investing in brands and products that resonate with our company’s portfolio and today’s health-conscious consumers. By leveraging our proven track record of innovation, and comprehensive brand offerings, we are well-positioned to meet and exceed the evolving health and wellness needs of our consumers,” Sharvil Patel, Chairman, Zydus Wellness Limited, said.
The deal is expected to be EPS accretive for Zydus Wellness from the very next year post-acquisition, it said. Zydus will pay Rs369 crore as upfront consideration and additional Rs21 crore if targets are met in the current financial year.
“Zydus has a proven track record of entering early in niche and emerging segments and successfully transforming them into major brands. We are confident that with access to the wide distribution network, strong supply chain and marketing capability our product portfolio will be able to scale newer heights. Zydus Wellness will also bring in systems and processes essential for a company looking to scale-up,” Vijay Uttarwar, founder of Naturell.
In India, protein is largely consumed in the form of powder, with companies mainly targeting gym goers. The whey protein market in India is projected to grow from $91.8 million in 2023 to $120.3 million by 2028, with a compound annual growth rate (CAGR) of 5.5%, according to Mordor Intelligence.
Post-pandemic, India has seen a boom in the health food industry, with even dairy giant Amul entering the protein market two years ago. Jayen Mehta, MD of Amul, recently said while initial consumers were mainly gym-goers, now a wider demographic, including mothers, is embracing protein products.
Source: Economic Times