Marico raises Cosmix stake to 80%, buys into Bonorizon

MARICO Limited (MARICO) is in focus on November 9 after announcing two deals worth about ₹149 crore. It bought a further 20% of plant-based protein brand Cosmix Wellness for ₹114 crore, taking its holding to 80%. It also agreed to acquire 51% of Bonorizon Consumer Ventures for up to ₹35 crore. Both deals were disclosed after market hours on Friday, November 6. The Bonorizon stake will come through a primary subscription, all in cash, and is expected to close within 90 days. Marico can buy the remaining stake after three years, at a price to be decided then. It links the deal to its plans for international business and digital growth in overseas markets. The deals fit Marico’s strategy of building a portfolio of digital-first brands in health and wellness. Cosmix sells plant-based protein and superfood supplements, a fast-growing category, and taking majority control lets Marico scale it faster. The combined ₹149 crore outlay is small relative to Marico’s quarterly revenue of about ₹3,900 crore. The price for Cosmix has risen sharply. Marico first bought 60% at an equity valuation of ₹375 crore. The latest 20% for ₹114 crore implies a valuation of about ₹570 crore, roughly 52% higher. Details on Bonorizon’s business and financials are thin, and both deals include options to buy the remaining stakes later, at prices not yet fixed. Investors should watch Cosmix’s revenue growth and profitability, details on Bonorizon’s business, and the cost of buying the remaining stakes. The key question is whether these digital brands can grow fast enough to justify the rising valuations Marico is paying. Disclosure: I do not hold any position in Marico Limited. This post is for informational purposes only and is not investment advice.