Marico rose 2.52% to Rs 523.20 after the company announced that its wholly-owned subsidiary, Marico South-East Asia Corporation (MSEA), has entered into a definitive agreement to acquire 100% of Beauty X Corporation.
Beauty X is an SPV incorporated in Ho Chi Minh City, Vietnam in July 2022, which owns the personal care brands Puritde Prence and iv having a range of premium and differentiated hair care and skin care products.Marico will buy the stake for about Rs 172 crore. The transaction will expand Marico's presence in the female personal care segment in Vietnam, with an offering of a range of premium and differentiated hair care and skin care products, while also realizing various operational synergies.
The transaction is expected to be completed by 31 March 2023, subject to requisite regulatory approvals and customary closing conditions.
Puritde Prence, launched in 2011, honors pure and natural beauty with the know-how and ingredients of Provence, France, with various fragrances such as lavender, cherry blossom, rose, among others.
iv, launched in 2017, brings the goodness of extra virgin olive oil, combined with other natural ingredients, in its wide range of products for nourishment of hair and skin.
Saugata Gupta, MD and CEO, Marico, said, "The addition of Puritde Prence and iv presents an opportunity to significantly expand our play in female beauty and personal care category and therefore increase our total addressable market in a high growth country like Vietnam. Both brands have established a distinct natural proposition and scaled up profitably in a rather short span of time. We are buoyant about the medium-term prospects of beauty and personal care category in Vietnam and expect to further stepup growth and profitability through investing in brand building and leveraging various operational synergies with our existing portfolio over the next few years," Gupta added.
Marico is one of India's leading consumer products companies in the global beauty and wellness space. Its portfolio includes brands such as Parachute, Saffola, Saffola FITTIFY Gourmet, Saffola ImmuniVeda, Saffola Mealmaker, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Coco Soul, Revive, Set Wet, Livon and Beardo.
The company's consolidated net profit declined 2.6% to Rs 301 crore despite of 3.2% rise in net sales to Rs 2,496 crore in Q2 FY23 over Q2 FY22.
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