Marico, a leading Indian consumer goods company, has recently made a significant move in the food industry by signing definitive agreements to acquire up to a 58% stake in Satiya Nutraceuticals. The deal is valued at Rs 369 crore (approximately $45 million).
Satiya Nutraceuticals, based in Mumbai, owns “The Plant Fix- Plix,” a popular digital-first, plant-based nutrition brand that achieved impressive sales of Rs 106 crore in the last fiscal year. Founded in 2018 by Rishubh Satiya and Akash Zaveri, Plix offers a wide range of products in categories like weight management, hair & beauty, sleep, and lifestyle nutrition.
The agreement between Marico and Satiya Nutraceuticals involves Marico acquiring a 32.75% stake on a fully diluted basis, which gives them requisite majority control over the board composition and total voting rights of the company. As a result, Satiya Nutraceuticals becomes a subsidiary of Marico. The acquisition of the remaining 25.25% stake will be completed in tranches by May 2025.
For Marico, this deal presents an opportunity to expand its presence in the health and wellness category. Saugata Gupta, Marico’s managing director and CEO, emphasized the strategic value of the investment in Plix, which not only broadens their total addressable market but also brings a digital-first brand with a unique value proposition into their portfolio.
Plix, primarily operating in the direct-to-consumer (D2C) and third-party e-commerce marketplaces, aims to scale its offline presence in the coming years by leveraging Marico’s well-established distribution network. Co-founders Rishubh Satiya and Akash Zaveri expressed their excitement about the partnership with Marico, highlighting their plan to strengthen the brand’s equity and expand into new categories and channels.
The plant-based food category is a fast-growing segment in India, estimated to be worth around Rs 2,000 crore, with over 250 startups entering the market in recent years. This acquisition by Marico adds to the growing trend of FMCG majors making strategic moves in the plant-based food space.
Industry experts predict that the addition of the Plix brand will aid Marico in achieving its Rs 400 crore revenue target for FY24. With the potential for expansion into value-added wellness and nutrition portfolios, Marico is set to venture into new territories and capitalize on the rising demand for plant-based food products in the country. The strategic partnership between Marico and Plix holds promising prospects for growth and success in the years to come.
