In a significant move to strengthen its presence in the growing wellness sector, Marico has acquired a 60% majority stake in direct-to-consumer (D2C) wellness brand Cosmix for Rs 226 crore. This acquisition underscores Marico's aggressive strategy to tap into new-age startups as consumer preferences shift towards healthier and more specialized products, moving away from conventional offerings.
Strategic Expansion in Wellness
The deal values Cosmix at approximately Rs 375 crore, highlighting the brand's strong market potential. Founded in 2019 by the husband-wife duo Vibha Harish and Soorya Jagadish, Cosmix has carved a niche in the wellness space with its range of plant-based protein powders and functional superfood blends. The brand is profitable and has recently diversified into categories such as plant-protein pancake mixes and bars, catering to the rising demand for health-conscious options.
Post-Pandemic Consumer Trends
The acquisition comes at a time when consumers, particularly in the post-pandemic era, have become more mindful of their dietary choices. There is a growing inclination towards products that offer better nutrition and cater to specific health needs, driving brands like Cosmix to innovate and expand. Marico's investment aligns with this trend, aiming to capture a larger share of the wellness market.
In an exchange filing on Wednesday, Marico disclosed that it holds the right to acquire the remaining stake in Cosmix after the financial year 2029, indicating a long-term commitment to the brand's growth. This move follows Marico's recent acquisition of popcorn brand 4700BC from PVR-Inox, showcasing the company's broader strategy to diversify its portfolio through strategic buyouts.
Leadership Insights
Saugata Gupta, Managing Director and CEO at Marico, emphasized the strategic importance of this investment. "The investment in Cosmix brings another strong and differentiated brand into our digital-first portfolio. We foresee immense potential in the wellness and plant-based nutrition space," he said. Gupta added that Cosmix is poised to expand into other adjacent wellness categories, further enhancing its market reach and product offerings.
This acquisition not only bolsters Marico's foothold in the D2C segment but also positions the company to leverage Cosmix's expertise in plant-based nutrition. As consumers continue to seek varied and high-quality wellness products, such strategic moves are expected to drive growth and innovation in the industry.
