Marico acquires 100% stake in True Elements for Rs 138 crore

FMCG major Marico Limited has signed a definitive agreement to acquire the remaining 46.02% stake in HW Wellness Solutions Pvt. Ltd., the owner of the health foods brand True Elements, for an aggregate consideration of up to Rs 138 crore.

Marico had acquired 53.98% stake in HW Wellness in 2022, making it a subsidiary. With this transaction, the company will now hold 100% ownership of the Pune-based firm, co-founded by Puru Gupta and Sreejith Moolayil.

According to the stock exchane filing, the FMCG brand said, "The Company has now entered into a definitive agreement to acquire the balance 46.02% of paid-up share capital of HW Wellness from its Founders and other shareholder(s) as per the terms and conditions agreed there under".

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Incorporated in 2013, HW Wellness is positioned as a digital-first brand in the healthy breakfast and snacks category under the “True Elements” label.

The company has reported strong growth over the past three years. Its turnover stood at Rs 164.38 crore in FY25, up from Rs 76.42 crore in FY24 and Rs 57.40 crore in FY23.

Marico said the move aligns with its strategy to strengthen its presence in the fast-growing healthy foods segment, leveraging True Elements’ portfolio and digital-first positioning.

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Marico reported a 9% increase in its consolidated profit year-on-year, along with a 23% jump in revenue, driven by a 25% rise in advertisement and promotional expenditure during the quarter.

Marico's profit climbed from Rs 474 crore in Q1 FY2024 to Rs 513 crore in Q1 FY25. The company's revenue soared to Rs 3,259 crore in Q1 FY25 compared to Rs 2,643 crore in the corresponding quarter last fiscal.

Marico's international business revenue was 12% during the quarter amid high input costs and currency headwinds in select markets.