Listed consumer products co. Marico, acquires controlling stake in D2C ayurvedic BPC brand Just Herbs

MUMBAI: MARICO LTD said it will acquire a 60% stake in Apcos Naturals Private Limited over the next two years through primary infusion and secondary buy-outs.

Apcos owns Just Herbs, a range of ayurvedic and organic skin and hair care products launched eight years ago and clocked sales of Rs17.5 crore during FY20-21. Marico will acquire 52.4% stake by July end to make Apcos Naturals its subsidiary while the balance 7.6% stake will be bought by March 2023. The company did not disclose the deal size but officials peg it around Rs70-75 crore.

Marico, the maker of Parachute oil said the investment is in line with its 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.

"Just Herbs presents an exciting and differentiated opportunity to have a meaningful play in Ayurveda-led beauty categories. 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 Rs100-crore plus digital brands within the next three years,” said Saugata Gupta, MD at Marico Limited.

Veda Corporate Advisors was the advisor on the deal. Last year, Marico completed its acquisition of Beardo, a men’s grooming brand.