Zydus Wellness Secures Majority Stake in Naturell India

On November 29, 2024, Zydus Wellness Ltd. finalised the acquisition of a 98.14% stake in Naturell (India) Pvt. Ltd., as per its exchange filing. The company is in the process of purchasing the remaining 1.86% stake and anticipates completing the transaction soon. This acquisition marks a step in Zydus Wellness’ expansion into the healthy snacks segment.

Details of the Acquisition

Zydus Wellness had announced its intention to acquire 100% of Naturell India in late October 2024 for ₹390 crore. The acquisition includes Naturell’s wholly-owned subsidiary, NIPL. As part of the deal, Zydus acquired 1.51 crore equity shares of ₹1 each, with the transaction funded entirely in cash. The company expects the acquisition to be earnings-per-share (EPS) accretive from the next financial year.

Expanding into the Healthy Snacks Market

Naturell India, operational since 2007, focuses on healthy snacks, including nutritional and protein bars, protein chips, and fibre-enriched snacks. Its product portfolio includes brands like RiteBite Max Protein and RiteBite, which cater to the protein and fibre-rich snack segments.

Leadership Comments

Dr Sharvil Patel, Chairman of Zydus Wellness, described the acquisition as a strategic addition that aligns with the company’s vision to meet the demand for health-conscious products. Tarun Arora, CEO of Zydus Wellness, emphasised that integrating Naturell would enhance their market offerings and innovation capabilities. Vijay Uttarwar, founder of Naturell, expressed confidence in Zydus’ ability to scale Naturell’s portfolio through its extensive distribution network and marketing infrastructure.

Stock Performance

As of today, December 2, 2024, Zydus Wellness Ltd.’s share price stands at ₹2,037.70, reflecting an increase of ₹12.75 (0.63%). Over the past year, the stock has gained 30.62%, with a year-to-date rise of 20.45%.

The acquisition of Naturell India expands Zydus Wellness’ range in the healthy snacking market, adding protein and fibre-rich products to its portfolio. 

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.