The growth trend in naturals, which started a few years ago with Patanjali launching a range of personal care products, prompted Hindustan Unilever to launch Ayush and acquire Indulekha. Colgate-Palmolive (India) too entered the space with ‘Vedshakti’.
Homegrown FMCG major Marico has acquired a 60% stake in Apcos Naturals, which owns the ‘Just Herbs’ brand of Ayurvedic hair & skin products, for an undisclosed consideration.
A statement issued by Marico said the equity stake will be acquired over a period of two years through primary infusion and secondary buyouts. 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 acquisition is a strong indicator that the demand in the ‘naturals’ space is only going strong and is here to stay. The growth trend in naturals, which started a few years ago with Patanjali launching a range of personal care products, prompted Hindustan Unilever to launch Ayush and acquire Indulekha. Colgate-Palmolive (India) too entered the space with ‘Vedshakti’.
What started as a trend in the mass segment, is now picking up in premium/luxury as well. Apcos Naturals is co-founded by CEO Arush Chopra and Brand Director Megha Sabhlok. The range of products, based on their pricing, fall in the super-premium or luxury category. While the brand garners majority of its business through its own D2C website, it is also available on online marketplaces (Amazon, Flipkart and Nykaa) and its exclusive offline stores in select cities.
Marico’s MD & CEO Saugata Gupta said, “Just Herbs presents an exciting and differentiated opportunity to have a meaningful play in Ayurveda-led beauty categories. The brand has built a healthy consumer franchise on the back of the quality and efficacy of its offerings. 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 Rs 100-crore-plus digital brands within the next three years.”
Chopra said, “We believe that Marico’s evolved capabilities, processes and systems will complement our ambition to scale up online as well as offline. We are very positive about the future prospects of this partnership and look forward to a fruitful journey with the team.”