Monday, September, 27, 2021 11:53:09

Major FMCG player Marico Ltd. has reportedly announced the acquisition of a majority stake in Apcos for an undisclosed amount. Apcos Naturals Private Limited is a company co-founded by Brand Director Megha Sabhlok and CEO Arush Chopra and is the maker of ayurvedic beauty brand Just Herbs.

This 60% stake acquisition will be performed through primary infusion and secondary buy-outs over a span of two years.

Marico supposedly commented that the investment complements the company’s strategy of rapid digital transformation through the establishment of scalable digital-first brands and increasing its appeal in the personal care sector.

In recent times, Marico has been looking to acquire companies in the direct-to-consumer (D2C) and digital-first segments. This sector has recently experienced the growth of several brands, particularly in the grooming segment. Earlier this year, the company successfully acquired Beardo, a men’s grooming startup.

Marico’s Managing Director and Chief Executive Officer Saugata Gupta apparently stated that the acquisition deal is a step in the direction of building at least three digital brands worth over Rs. 100 crore within the next three years.

Marico has doubled down on the digital channel and launched many digital-first brands like Coco Soul and Saffola Fittify over the past few years. The company also launched its D2C platform Saffola Stores in 2020.

Currently, the platform is a small contributor to the overall revenue of Marico. However, it will eventually gain significant growth momentum, as supposedly commented by the Chief Financial Officer Pawan Agrawal.

Since the beginning of the pandemic, the Parachute and Saffola maker has increased sales from e-commerce with 8 percent contributions to its sales in comparison to 5 percent a year ago.

Acquisition of digital brands like Just Herbs is part of Marico’s strategy to strengthen its position in the e-commerce segment.

Source credits:

https://www.moneycontrol.com/news/business/companies/marico-acquires-majority-stake-in-ayurvedic-beauty-brand-just-herbs-7173431.html