Marico to acquire 54% in health food brand True Elements

  • May 23, 2022
Marico to acquire 54% in health food brand True Elements

Marico NSE -0.55 % Limited has announced a strategic investment in HW Wellness Solutions, owner of health food brand True Elements, with an acquisition of 54% equity stake through primary infusion and secondary buyouts. The maker of Parachute and Saffola oil said it is an all cash deal but did not disclose the acquisition amount.

True Element, a clean label, digital-first brand is in the healthy breakfast and snacks segment and clocked sales of Rs54 crore during FY22. Their portfolio includes western breakfast such as oats, quinoa, muesli, granola, flakes and Indian breakfast including poha, upma and dosa among others.

Saugata Gupta, MD and CEO, Marico Limited, said, “True Elements is another step towards expanding our total addressable market in the healthy foods segment. We believe the ethos of the brand complements the purpose that drives Marico. The exciting range of products bring to life the rare and virtuous blend of quality, taste and health at the right price. This adds another digital-first brand in our portfolio, which not only has a distinct proposition but also exhibits strong fundamentals along with a growing digital and offline presence.”

In the country’s snacking market, especially breakfast options, Indians still prefer traditional or savoury ready-to-eat corn flakes and muesli alternatives. Over the past few years, companies including MTR, ID Fresh, PepsiCo and Marico have driven the market as consumers switch to healthier options such as oats and whole-grain meals.

Sreejith Moolayil, COO and Co-founder, HW Wellness Solutions Private Limited, said, “In addition to value systems, we see strong synergies with Marico in terms of our aspirations for the brand and are confident that this partnership will only make our promise of providing clean, healthy & no nonsense food much stronger.”

Analysts feel direct-to-consumer brands are focused on healthy foods with the possibility of hyper customization, threatening mainstream companies in such niche and premium segments.