FMCG major Marico has announced its acquisition of a majority stake (58%) in D2C nutrition brand Plix for INR 369.01 Crores. The cash-only deal will be executed in multiple tranches, with Marico having acquired a 32.75% stake in Plix’s parent company, Satiya Nutraceuticals, via primary infusion and secondary buyouts on July 26.
Plix Becomes a Subsidiary of Marico
Marico acquired majority control over Plix’s board through a recent acquisition. Plix is now a subsidiary of the FMCG giant. Marico will acquire the remaining 25.25% of Plix’s paid-up share capital by May 2025, subject to certain conditions. Furthermore, Marico has obtained the right to acquire the remaining 42% stake in Satiya Nutraceuticals at a later date.
Marico- Expansion of Addressable Market and Offline Presence
The deal enables the firm to expand its total addressable market in the nutrition segment and strengthen its presence in the health and wellness category. On the other hand, Plix, a plant-based D2C brand, will leverage Marico’s resources to bolster its offline presence in the coming years.
Plix’s Journey and Financial Growth
Founded in 2020, Plix Life is a Mumbai-based D2C startup offering a wide range of plant-based nutrition products. The startup has experienced steady growth in turnover, from INR 10.92 Crores in FY2019-20 to INR 106 Crores in FY2022. It competes with other players such as OZiva, Setu Nutrition, and Fast&Up.
Marico- Expanding Footprint in D2C
This is not Marico’s first foray into the D2C space. Over the past few years, the FMCG giant has bolstered its digital presence with acquisitions of majority stakes in D2C brands like Apcos Naturals and True Elements. Marico has also invested in startups like Beardo and Revofit.FMCG companies are actively competing in the health and wellness category. Ecommerce and D2C startups are fueling the rapid growth in this sector. Experts expect India’s D2C economy to transform into a $300 billion market opportunity by 2030. Marico’s strategic acquisitions are positioning the company for ongoing success in this thriving sector.
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