Marico gains on acquiring majority stake in Apcos Naturals

Marico rose 2.14% to Rs 544.25 after the company announced a strategic investment in Apcos Naturals with an acquisition of 60% equity stake for an undisclosed consideration.

Marico will acquire 52.4% of the total paid-up share capital by 31 July 2021 and accordingly Apcos Naturals shall become a subsidiary of the company. The company will acquire the balance stake of 7.6% by 31 March 2023 as per the conditions set out in the shareholders agreement signed between the parties.

Apcos Naturals is into beauty & personal care segment under the brand name Just Herbs and is a full stack Direct to Consumer Ayurvedic beauty brand. The firm recorded a turnover of Rs 17.5 crore in FY2020-21.

 

The investment is in line with Marico's strategy to accelerate its digital transformation journey through building scalable digital-first brands, either organically or inorganically, as well as to premiumise its play in personal care.

Saugata Gupta, MD and CEO, Marico, said, Just Herbs presents an exciting and differentiated opportunity to have a meaningful play in Ayurveda-led beauty categories. The brand has built a healthy consumer franchise on the back of the quality and efficacy of its offerings.

The digital presence it has built in a short span of time is impressive and we strongly believe in its potential to reach critical mass over the next couple of years. This investment is another step towards our aspiration to build a portfolio of at least three Rs 100-crore plus digital brands within the next three years.

Marico is one of India's leading consumer products companies in the global beauty and wellness space.

Powered by Capital Market - Live News