FMCG major Marico has announced that it has signed definitive agreements to acquire up to 58 percent in Satiya Nutraceuticals Private Limited, a company that owns the brand “The Plant Fix- Plix” in a cash deal for Rs 369.01 crore.
As part of the transaction, the company has acquired 32.75 percent stake in Satiya Nutraceuticals on a fully diluted basis and requisite majority control over its Board composition/total voting rights on July 26, 2023, and accordingly it has become a subsidiary of the Company, Marico said in a stock exchange disclosure.
Marico will acquire the remaining stake of 25.25 percent on a fully diluted basis in tranches by May 2025.
Plix recorded a turnover of Rs 106.43 crore in FY 23, up from Rs 41.58 crore in FY22.
For Marico, this acquisition is part of its diversification strategy, especially in the foods business. The company has been expanding its health foods segment under Saffola Fittify where it already sells protein shakes and entered the plant protein category with Saffola Soya Chunks.
It recently also launched a Saffola Soya Bhurji soya-based instant snack in a bid to strengthen its foothold in both the healthy foods and ready-to-cook segment in India.
In its latest annual report, the FMCG major said it expects its food business to scale up to Rs 850 crore in FY24 in the domestic market. Protein and plant-based protein is a fast-growing category that FMCG majors have been eyeing over the past year through launches and acquisitions. Tata Consumer forayed into the plant protein category in September 2022 with Tata GoFit, while HUL acquired a stake in protein brand Oziva and ‘wellbeing Nutrition in December 2022.