Marico Limited has announced a tactical investment in HW Wellness Solutions, owner of health food brand True Elements, with an acquisition of a 54% equity stake through primary infusion and secondary buyouts.
The maker of Saffola oil said it was 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 Rs. 54 crores during FY22.
Their portfolio includes western breakfasts such as oats, quinoa, muesli, granola, flakes and Indian breakfasts 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 brings 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, and 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.
New categories that were earlier fragmented such as dried fruits and nuts, are being targeted by D2C companies. The health-oriented food space has seen traction with the rise of D2C brands. Traditional brands do have an opportunity to tap into this vast space. Companies like Marico and NSE -1.96 % are adopting industry trends by increasing their product baskets. With a growing health-conscious population, the nutrition health space is here to stay,” said a recent HDFC Securities report.