Marico acquires majority stake in protein-products firm Cosmix

The acquisition spree of Marico continues with the recent purchase of a 60% stake in Cosmix Wellness, an Indian protein-products company. Marico stated that this Rs2.25bn investment aims to broaden its influence in premium food and nutrition segments.

In the last month, Marico acquired over 90% of Zea Maize, which owns the renowned 4700BC snacks brand. Cosmix Wellness, established by Vibha Harish and Soorya Jagadish in 2019, showcases plant-based protein powders, pancake mixes, and plant-protein bars under its own brand.

Marico’s Managing Director and Chief Executive, Saugata Gupta, views this investment as a move to introduce a robust and distinctive brand into the company’s digital portfolio. Emphasizing the substantial prospects in the wellness and plant-based nutrition sector, Gupta’s perspective aligns with Marico’s strategy to elevate its position in the industry.

Although food constitutes a minor segment of Marico’s overall business revenue, its food division, with the focus on the Saffola brand, experienced a substantial 44% revenue growth, surpassing Rs9bn. Looking ahead, Marico aims to strengthen its footprint in the food market by leveraging its recent acquisitions.

Marico retains the option to purchase the remaining shares in Cosmix Wellness post the closure of the 2029 financial year. The company reported that Cosmix Wellness has been self-sustaining and profitable since its inception, reaching an annual revenue of approximately Rs100bn with a consistent high teen EBITDA margin.

Through a collaborative statement, Harish and Jagadish expressed their mission to promote clean ingredients and transparent communication in their wellness products, marking a significant milestone by partnering with Marico. Recognizing synergies between R&D, manufacturing, and beyond, this partnership is poised for mutual growth.

Expanding beyond the food sector, Marico ventured into Vietnam’s direct-to-consumer market with a Rs2.61bn investment in Skinetiq, the parent company of the Candid skincare brand. With these strategic moves, Marico is poised to enhance its market position across various industries, driven by its vision for growth and innovation.