Marico Secures Full Control of True Elements

Post by : Avinab Raana

Photo : X / ET NOW

Marico Strengthens Its Health Foods Strategy

The Indian FMCG giant Marico has announced it will acquire the remaining 46.02 per cent stake in HW Wellness Solutions, the company behind the health foods brand True Elements. The deal, valued at up to ₹138 crore, will make True Elements a wholly owned subsidiary of Marico. The acquisition is expected to be completed by the end of September 2025. This move signals Marico’s growing focus on the health foods segment, one of the fastest-growing spaces in the Indian consumer market.

True Elements’ Rise in the Health Foods Space

True Elements, founded in 2013, has carved a niche for itself in the health and nutrition sector with its wide range of cereals, granolas, oats, mueslis, seeds, and snack bars. The brand has built its identity on clean-label products, marketed under the promise of honesty and transparency in food. Its revenue growth underscores consumer demand: ₹57.40 crore in FY23, ₹76.42 crore in FY24, and an impressive ₹164.38 crore in FY25. The surge reflects the growing appetite of Indian consumers for healthier alternatives in their daily diet.

Marico’s Journey with True Elements

Marico first invested in True Elements in May 2022, taking a majority 53.98 per cent stake. Over the past three years, the brand has benefited from Marico’s resources, scale, and experience, while retaining its entrepreneurial agility. The decision to acquire the remaining stake now provides Marico with full control, allowing it to steer the brand’s strategy without constraints. By making True Elements a wholly owned subsidiary, Marico can accelerate innovation and pursue aggressive expansion both online and offline.

Significance of the Marico Acquisition

The Marico acquisition of True Elements comes at a time when Indian consumers are increasingly choosing natural, wholesome, and minimally processed food options. The health foods sector has moved from niche to mainstream, driven by rising awareness of nutrition and lifestyle changes. With True Elements under complete ownership, Marico can integrate supply chains, streamline operations, and push distribution beyond digital channels into modern retail and traditional trade. The acquisition also allows the company to consolidate its health and wellness portfolio, aligning True Elements with brands like Saffola.

Financial Structure of the Deal

The transaction involves a cash payout of up to ₹138 crore for the remaining 46.02 per cent stake. The acquisition will be executed through a definitive agreement and is expected to close by 30 September 2025. The valuation reflects both the brand’s strong recent performance and its potential for future growth. For Marico, the financial commitment is a strategic allocation of capital aimed at capturing a long-term opportunity in the evolving FMCG landscape.

Synergies Between Marico and True Elements

The acquisition strengthens Marico’s capability to combine its extensive distribution network with True Elements’ digital-first success. Marico can now bring True Elements to a wider offline audience across tier 1, tier 2, and rural markets, while also boosting exports. True Elements, with its startup culture and innovation-driven portfolio, complements Marico’s established scale. Together, the two entities can innovate faster, reduce costs, and expand into adjacent categories such as plant-based proteins, functional foods, and healthy snacking.

Investor Sentiment and Market Reaction

The announcement has been well received by the investor community, as it underscores Marico’s intent to diversify beyond traditional categories like hair oils and edible oils. The health foods sector is widely expected to outpace growth in core FMCG categories, offering higher margins and strong consumer loyalty. Analysts see the acquisition as a move that could enhance Marico’s long-term revenue streams while future-proofing its business model against changing consumer preferences.

The Growth Potential of Health Foods in India

India’s health and wellness foods sector has been expanding at double-digit rates, supported by rising incomes, urbanization, and greater health awareness. Younger consumers, especially millennials and Gen Z, are driving demand for nutritious, on-the-go options. Categories such as cereals, granolas, and protein-based snacks are gaining traction, while plant-based and functional foods are emerging as new growth areas. With this acquisition, Marico has positioned itself to be a key player in shaping the future of this market.

Challenges Ahead for Marico and True Elements

While the acquisition strengthens Marico’s presence in health foods, challenges remain. Maintaining True Elements’ identity as a transparent and authentic brand will be critical. Over-commercialization could risk alienating loyal customers who value the startup’s ethos. Managing raw material costs in health foods, ensuring price competitiveness, and navigating intense competition from both startups and established FMCG companies will test Marico’s execution capabilities. Integration must balance efficiency with the agility that made True Elements successful in the first place.

A Look at Marico’s Broader Strategy

The acquisition fits into Marico’s larger strategy of diversifying its portfolio. Traditionally known for brands like Parachute and Saffola, Marico has been pivoting towards new-age categories to stay relevant in a changing market. Investments in digital-first brands, expansion into wellness products, and a focus on sustainable and clean-label offerings are part of this vision. The True Elements deal is not just an acquisition; it is an affirmation of Marico’s long-term bet on consumer health and wellness.

The Future of True Elements Under Marico

As a wholly owned subsidiary, True Elements is expected to see accelerated growth. Marico will likely scale up distribution, expand product lines, and invest heavily in brand-building campaigns. With increased financial backing, True Elements could also explore export opportunities, positioning itself as a global player from India. Its continued focus on clean, nutritious food, coupled with Marico’s operational expertise, could make it a dominant name in the health foods category in the coming years.

A Defining Deal for Marico

Marico’s acquisition of the remaining stake in True Elements represents more than just a corporate transaction. It is a reflection of the changing dynamics of India’s FMCG market, where health and wellness are no longer fringe categories but central to consumer demand. By securing full ownership, Marico has given itself the freedom to steer True Elements’ growth and fully integrate it into its strategic vision. The challenge ahead will be balancing scale with authenticity, and efficiency with innovation. If successful, this acquisition could become a landmark in Marico’s growth journey and set a precedent for future deals in the FMCG sector.

Marico acquisition, True Elements, Health foods