Marico Buys 60% Stake In Ayurveda Brand Just Herbs
Marico Ltd. acquired 60% stake in the maker of Just Herbs shampoos to lotions in an all-cash deal as it continues to expand online reach.
The company will acquire 52.4% stake in Apcos Naturals Pvt., the owner of Just Herbs, by July 31 and the remaining 7.6% March 31, 2023 in the online-focused brand, Marico said in an exchange filing. It didn't disclose financial details of the transaction.
"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,” the company said.
Just Herbs has built a healthy consumer franchise on the back of the quality and efficacy of its offerings, Saugata Gupta, managing director and chief executive officer at Marico, was quoted as saying in the statement. "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."
Apcos Naturals reported a revenue of Rs 8 crore in FY20 and Rs 17.5 crore in FY21, according to the filing.
Marico targets to build a portfolio of at least three Rs 100-crore plus digital brads in the next three years. In 2017, it acquired 45% stake in men’s grooming brand Beardo, and in June last year bought the remaining 55%.
Arush Chopra, chief executive officer and co-founder at Apcos Naturals, said in the statement: “We believe that Marico’s evolved capabilities, processes and systems will complement our ambition to scale up online as well as offline.”