Zydus Wellness makes strategic entry into healthy snacks by acquiring Naturell (India)

Zydus Wellness Limited, an established name in the health and wellness sector, has announced its definitive move to acquire 100% of Naturell (India) Private Limited, a pioneer in healthy snacking known for its popular brands like Ritebite Max Protein and Ritebite. This acquisition represents a significant strategic expansion for Zydus Wellness, as it deepens its footprint in the rapidly growing segment of health-conscious snacking.

The announcement came on October 30, 2024, as Zydus Wellness outlined its plans to absorb Naturell’s operations, including its wholly owned subsidiary. Naturell’s product line, launched in 2003 and focused on nutritious snacks since 2007, aligns with Zydus’s vision to cater to the evolving demands of health-aware consumers. This move underscores Zydus’s broader ambition of enhancing its presence within the consumer wellness space, a mission that encompasses its wide array of food and personal care offerings.

Dr. Sharvil Patel, Chairman of Zydus Wellness Limited, expressed confidence in this strategic acquisition, noting that it positions the company to leverage its robust innovation capabilities and proven brand success. Patel highlighted that integrating Naturell into Zydus’s portfolio complements their growth strategy, enabling the company to tap into the burgeoning market of health-focused products.

Zydus has confirmed that the transaction will be funded by cash and anticipates that it will be earnings per share (EPS) accretive from the subsequent year post-completion. This financial benefit signifies immediate value addition for shareholders, boosting the company’s growth trajectory.

Tarun Arora, CEO and Whole Time Director of Zydus Wellness Limited, reinforced the strategic value of the acquisition, mentioning that it serves as a pivotal step towards strengthening their market dominance. He pointed out that by merging Naturell’s expertise and product range with Zydus’s extensive distribution network and marketing capabilities, the company is poised for sustained innovation and growth.

On the other hand, Naturell (India) founder, Vijay Uttarwar, shared his enthusiasm about the deal, praising Zydus’s history of successfully nurturing niche segments into mainstream markets. Uttarwar expressed optimism about scaling Naturell’s product reach, citing the acquisition as a path to unprecedented growth facilitated by Zydus’s operational strengths.

Zydus Wellness, already prominent with products like Sugar Free, Complan, Glucon-D, Nutralite, and Everyuth, is expected to integrate Naturell’s portfolio seamlessly. This alignment bolsters its diverse offerings, allowing it to compete more effectively in both the food and personal care sectors.

Market analysts see this acquisition as a strategic play that fits into the broader trend of consumer goods companies pivoting toward healthier, on-the-go options. Industry observers have noted that as health-conscious snacking becomes mainstream, the move will likely position Zydus to capture more market share and sustain long-term profitability.