Zydus Wellness Limited has announced a definitive agreement to acquire Naturell (India) Private Limited (NIPL), a leading player in the healthy snacking industry. The acquisition, valued at approximately ₹390 crores, marks a significant move by Zydus Wellness to broaden its consumer wellness portfolio by entering the rapidly growing healthy snacking segment.
This acquisition will see Zydus Wellness take complete ownership of Naturell India, including its wholly-owned subsidiary. NIPL, known for its popular brands Ritebite Max Protein and Ritebite, has carved out a strong position in the Indian market with its wide range of protein bars, cookies, protein chips, and other health-focused food products. The addition of Naturell India’s brands and product offerings is expected to further Zydus Wellness’s reach in the health-conscious consumer market.
Details of the Acquisition
The agreement, approved by the Zydus Wellness Board of Directors on October 30, 2024, outlines the acquisition of 1,50,78,605 equity shares of Naturell India, representing 100% of the company’s paid-up share capital. The ₹390 crore transaction includes an upfront payment of ₹369 crores, with an additional ₹21 crores set aside as an earnout amount, contingent on achieving agreed milestones for the financial year 2024-25. Zydus Wellness will fund the acquisition entirely through cash reserves.
For Zydus Wellness, this move is more than just an expansion of its product line; it is a strategic alignment with the company’s vision to cater to India’s increasing demand for healthier, nutrient-rich snacks. The acquisition is expected to be earnings-per-share (EPS) accretive from the first year post-acquisition, which signals positive financial growth for Zydus Wellness shareholders.
Why Naturell India?
Naturell India, established in 2003 and having entered the healthy snacks space in 2007, has built a solid reputation for its innovative and health-focused products. With a focus on protein-fueled snacks under the Ritebite Max Protein brand and fiber-enriched options under Ritebite, Naturell India has a well-rounded portfolio catering to various dietary needs and preferences. Its financials indicate steady growth, with revenue from operations reaching approximately ₹128.89 crores (under IGAAP) for the fiscal year ending March 31, 2024.
By acquiring Naturell India, Zydus Wellness aims to capitalize on the growing trend toward health-conscious eating, especially as more Indian consumers prioritize wellness and seek out nutritious snack options. The acquisition provides Zydus with an established platform and a trusted brand name in the health snack category, giving it immediate entry and a competitive edge in this market.
Strategic Vision
Speaking on the acquisition, a spokesperson for Zydus Wellness said, “This acquisition is in line with our strategic focus on expanding into wellness categories that resonate with today’s consumer. With Naturell India, we’re not only adding to our product range but also reinforcing our commitment to providing solutions that cater to the health-focused lifestyle of modern consumers.”
Zydus Wellness has a history of successful products in the wellness sector, including brands like Sugar Free, Glucon-D, and Nutralite. The addition of Naturell India’s product lineup complements Zydus’s existing offerings and strengthens its position in a fast-evolving market segment.
Industry Implications
The acquisition reflects a larger trend in the Indian FMCG sector, where companies are increasingly diversifying their portfolios to include health-focused products. With the healthy snacks industry seeing a surge in demand due to rising health awareness, this acquisition positions Zydus Wellness to capture a substantial share of this market.
As Zydus Wellness integrates Naturell India’s assets and expertise, it aims to meet the growing demand for nutritious snacks and advance its mission to deliver holistic wellness solutions. The acquisition is expected to close in the coming months, pending regulatory approvals, and is likely to reshape the healthy snacking landscape in India.