Marico to Expand D2C Beauty Portfolio with 100% Stake in Apcos Naturals

Marico Limited has announced that it has entered into a definitive agreement to acquire the remaining 40% equity stake in Apcos Naturals Private Limited, the company that owns the beauty brand “Just Herbs.” This acquisition follows Marico’s initial strategic investment in Apcos Naturals, where the company had earlier acquired a 60% equity stake. With the completion of this transaction, Apcos Naturals will become a wholly-owned subsidiary of Marico Limited.

The acquisition of the remaining stake is a related party transaction as it involves the Founders/Directors of Apcos Naturals and their relatives. However, the transaction has been executed on an arm’s length basis, ensuring that the terms are fair and reasonable to both parties.

Apcos Naturals operates within the beauty and personal care industry, a rapidly growing sector driven by consumer demand for premium, natural, and Ayurvedic beauty products. With the acquisition of Apcos Naturals, Marico has strategically positioned itself to capitalise on the burgeoning market of natural beauty products, as well as the growing Direct to Consumer (D2C) sales channel.

This acquisition reflects Marico’s strategic focus on expanding its presence in the premium beauty segment. The company has successfully tapped into the consumer preference for clean and natural beauty solutions, leveraging the strength of the Just Herbs brand in the Ayurvedic segment.

The acquisition of the remaining 40% equity stake from the Founders/Directors of Apcos Naturals and other shareholders is valued at an aggregate consideration of up to ₹70 crore. With this transaction, Marico will increase its equity stake in Apcos Naturals from 60% to 100%, thereby fully integrating the company into its operations. The deal is expected to close on or before September 30, 2024, subject to customary closing conditions.

Apcos Naturals, incorporated in 2018, has experienced significant growth in the last few years. The company’s turnover has steadily increased, reflecting its strong market presence and consumer appeal. The turnover for FY 2023-24 stands at ₹96.03 crore, up from ₹59.25 crore in FY 2022-23, and ₹35.06 crore in FY 2021-22.

The acquisition of Apcos Naturals aligns with Marico’s long-term strategy of expanding its footprint in the premium natural beauty segment. With the Just Herbs brand under its full control, Marico is well-positioned to drive further growth in this category and enhance its presence in the D2C sales space. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.