Marico To Acquire Majority Stake In Satiya Nutraceuticals For Rs 369 Crore

Marico Ltd. has announced the acquisition of a 58% stake in Satiya Nutraceuticals Pvt. for up to Rs 369 crore.

This move comes as the company seeks to expand its total addressable market in the rapidly growing health and wellness category. Satiya owns the clean-label brand 'The Plant Fix-Plix'.

Marico has acquired a 32.75% stake in Satiya Nutraceuticals on a fully diluted basis through primary and secondary buyouts and has majority control over the board, according to its exchange filing. It will buy the remaining 25.25% stake by May 2025.

Additionally, Marico has the right to acquire the remaining 42% of Satya Nutraceuticals at the end of three years from the execution date for a consideration to be determined at such time, subject to approvals.

"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, managing director and chief executive officer at Marico.

Plix's philosophy resonates with Marico's purpose, which is to empower consumers to manage their health proactively, said Gupta.

"We are confident that the innovative range of plant-based products, combined with robust fundamentals, will propel the brand towards expanding its footprint in chosen product categories and marketplaces. It is heartening to see that Marico continues to be seen as the strategic investor of choice for founders who want to build sustainable businesses."

The Mumbai-based Satiya Nutraceuticals was co-founded by Rishubh Satiya and Akash Zaveri in 2020. It has an extensive product range spanning across weight management, hair and beauty, sleep, and lifestyle nutrition categories under its brand, Plix.

Currently, the online plant-based nutrition brand is available only on e-commerce and its own D2C channel. However, plans are underway to ramp up its offline presence over the next few years, according to a joint statement released on Wednesday.

The company's turnover jumped to Rs 106.43 crore in FY23 from Rs 41.6 crore a year ago. As of March 2021, its turnover stood at Rs 11 crore.

"In partnership with Marico, we will prioritise strengthening the brand’s equity and expedite growth by expanding into new categories and channels," the co-founders were quoted as saying in a statement.

This deal comes at a time when plant-based food and wellness items are gaining traction and drawing investments. Last year, Tata Consumer Products Ltd. forayed into the plant protein category with Tata GoFit. It also entered into plant-based meat under Tata Simply Better.

HUL also acquired a stake in protein brand Oziva and Wellbeing Nutrition in 2022. ITC has also launched sustainable plant-based protein products for consumers under its ITC Master Chef IncrEdible brand across two varieties—the 'Incredible' Burger Patties and the 'Incredible' Nuggets.

Plant-based food and clean beauty segments are still at a nascent stage in the country. However, the country's vegan food market is expected to have a compound annual growth rate of 11.32% between 2022 and 2027, according to Assocham's recent report—The Rising Plant-Based Sector in India: Insights and Opportunities.

Similarly, according to Statista, the clean beauty industry is growing by 10% each year. By 2024, the market is projected to reach $22 billion and $54 billion by 2027. There are as many as 300 homegrown brands competing against each other.