Marico shares in focus after latest acquisition, ahead of Q3 results

Shares of FMCG major Marico Ltd. will be in focus on Tuesday, January 27, after the company announced that it has entered into definitive agreements to make a strategic investment in Zea Maize, the owner of premium snacking brand 4700BC.

Under the transaction, Marico will acquire 93.27% of Zea Maize's paid-up share capital from PVR INOX for a consideration of ₹227 crore, effectively making Zea Maize a subsidiary upon completion.

The acquisition is expected to be completed within 30 days, as per a regulatory filing. Marico will also have the right to acquire the remaining stake in Zea Maize after three years from the execution date of the agreement.

4700BC is a well-known premium snacking brand with a presence across gourmet popcorn, makhana, crunchy corn and nachos.

The brand has seen robust revenue growth over the past three years, with revenue rising to ₹98.66 crore in FY25 from ₹75.29 crore in FY24 and ₹48.47 crore in FY23.

The acquisition marks Marico’s entry into the premium indulgence and gourmet snacking space and is expected to expand the company's total addressable market.

Key factors to track going ahead include the scalability of the 4700BC brand under Marico's distribution network and the potential for further acquisitions in the gourmet snacking segment.

Saugata Gupta, MD and CEO of Marico said the investment aligns well with Marico's ambition to participate in fast-growing food categories through distinctive and future-ready brands.

He added that the company sees huge potential in 4700BC as a premium snacking brand with strong consumer connect and proven execution capabilities.

Marico is also scheduled to announce its December quarter earnings later today.

In its Q3 business update, the company had reported year-on-year revenue growth in the high twenties, keeping it on track to meet its full-year growth aspirations. Input cost trends also turned more favourable, with copra prices correcting by around 30% from recent highs and expected to soften further with the onset of the flush season. Vegetable oil prices remained elevated, while crude oil derivatives were largely benign.

In India, Marico delivered underlying volume growth in the high single digits, showing a slight sequential improvement. Parachute, the company's flagship coconut oil brand, continued to demonstrate resilience despite elevated input costs and earlier pricing actions.

Shares of Marico ended Friday's session 1.41% lower at ₹740.90.