Marico purchases 58% stake in Plix for Rs 369 crore

27 Jul 2023 , 12:40 PM

FMCG giant Marico Limited said on July 26 that it would pay Rs 369.01 crore to acquire 58% of plant-based nutrition company Plix.

The acquisition takes place as the direct-to-consumer (D2C) market continues to experience consolidation, with smaller enterprises being acquired by bigger firms. ITC announced in January that it was buying the healthy food startup Yoga Bar. Last month, men’s grooming company Ustraa announced it would be acquired by beauty and skincare company VLCC through a secondary purchase and share exchange.

Plix was established in 2018 by Rishubh Satiya and Akash Zaveri. Its products support better hair health and weight control. 

Marico has already acquired 32.75% of Satiya Nutraceuticals Private Limited, the company that owns and runs The Plant Fix-Plix; however, it stated that the remaining 25.25% will be acquired by May 2025.

‘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,’ said Saugata Gupta, MD and CEO, Marico Limited.

The current Plix management group will carry on independently managing the company.

It is encouraging to see that founders who aspire to create sustainable firms continue to view Marico as their preferred strategic investor.

Marico has been on an acquisition binge in recent years. The FMCG giant acquired the men’s grooming business Beardo in 2020, and the following year it bought the majority of the ayurvedic beauty company Just Herbs. In 2022, it carried on its search and acquired the breakfast and snack company True Elements.

This firm, which has secured more than $5 million from Guild Capital and RPSG Capital Ventures, now succeeds as a D2C brand and relies on outside e-commerce marketplaces. However, it wants to leverage Marico’s position over the coming years to increase its offline presence.

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