Marico integrates Rs 214-crore Beardo business into parent

Marico Ltd on Tuesday announced the integration of the business of Zed Lifestyle Pvt Ltd, its wholly owned subsidiary that operates the men’s grooming brand Beardo, as part of an intra-group restructuring exercise aimed at improving operational efficiencies.

The consumer goods major said the restructuring will be carried out through the voluntary liquidation of Zed Lifestyle, with its entire business undertaking to be transferred to Marico. The move is expected to drive operational synergies and more efficient allocation of resources, the company said in a regulatory filing.

During the last financial year, Zed Lifestyle reported a turnover of Rs 214.17 crore, contributing 1.98% to Marico’s consolidated revenue. The subsidiary’s net worth stood at Rs 18.61 crore.

Marico had fully acquired Beardo in 2020, purchasing the remaining 55% stake in an all-cash transaction, after initially investing in the men’s grooming startup.

Separately, Marico also announced the acquisition of a controlling stake in Zea Maize Pvt Ltd, the owner of premium gourmet popcorn brand 4700BC, for Rs 226.83 crore. The company will acquire an initial 93.27% stake, with the transaction expected to be completed within 30 days.

Marico also holds the right to acquire the remaining stake in Zea Maize after three years from the execution date, at a valuation to be determined at that time.

Following the announcements, shares of Marico ended higher on Tuesday, closing 0.85% up at Rs 747.20 apiece on the BSE.