 "True Elements")
FMCG major Marico on Monday said it has acquired a majority 54 per cent stake in the digital-first healthy breakfast and snacks brand True Elements for an undisclosed amount.
The homegrown firm has acquired a 54 per cent equity stake in HW Wellness Solutions, which owns brand True Elements, through primary infusion and secondary buyouts, said a company statement.
True Elements' existing leadership team will continue to run the brand independently and build synergies, it added.
"The transaction will expand Marico's presence in the healthy foods segment and accelerate its digital transformation journey by adding another digital-first brand with a strong and differentiated proposition in its portfolio," said Marico in a regulatory filing.
Over the valuation, Marico said the acquisition of equity shares of HW Wellness was completed at a mutually agreed pre-money enterprise valuation.
"The said pre-money enterprise valuation has not been disclosed herein due to reasons of confidentiality," it said.
Co-founded by Puru Gupta and Sreejith Moolayil, True Elements is a digital-first brand of healthy breakfast & snacks. It is India's only food brand to be certified as both 'Clean Label' and '100% wholegrain' by leading US-based non-profit organisations.
It offers a range of over 70 products spanning across categories of western breakfast, Indian breakfast, snacks, amongst others.
True Elements products are available on more than 90 online platforms and at over 12,000 retail outlets.
Marico MD and CEO Saugata Gupta said the acquisition of a majority stake is another step towards "expanding our total addressable market in the healthy foods segment".
"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," he said.
HW Wellness Solutions CEO and Co-founder Puru Gupta said: "We are delighted to have entered a strategic partnership with Marico... Our next phase will be focused on long-term brand building and accelerating our entry into newer households."
Its turnover in FY22 was Rs 54.3 crore.
Marico, which owns popular brands such as Saffola, Livon, Hair & Care and Parachute, had recorded a turnover of Rs 9,500 crore (USD 1.3 billion) in FY22.
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