Marico's Strategic Acquisition of 4700BC Popcorn to Fuel Growth in Premium Snacking Segment
In a bold move to diversify its food offerings, Marico Limited has acquired over 93% of the premium popcorn brand 4700BC for ₹226.83 crore. This acquisition is part of Marico's strategy to achieve a 25% compound annual growth rate (CAGR) in its foods portfolio, blending indulgent snacking with its established health-led brands.
Expanding Beyond Health-First Foods
Saugata Gupta, MD and CEO of Marico, emphasized that while consumers prioritize healthier options, they refuse to compromise on taste. "That's where 4700BC becomes a great fit in our foods portfolio," he stated. The brand, founded in 2012 and previously owned by multiplex operator PVR, reported annualized revenues of ₹140 crore in the December 2025 quarter, with the deal valuing it at approximately 2.4 times its FY25 revenue of ₹98.66 crore.
Portfolio Integration and Market Positioning
Marico's existing food portfolio is heavily centered on health and wellness, featuring brands like Saffola, True Elements, and Plix. Gupta highlighted that 4700BC fills a crucial gap in indulgence, allowing Marico to enter the 'gourmet but better-for-you' snacking space. This move positions the company against competitors such as ITC, Tata Consumer Products, and HUL, who have also intensified their focus on snacks.
- ITC leverages brands like Bingo! and Sunfeast, alongside health-oriented launches.
- Tata Consumer Products expands through Soulfull and Ching's Secret.
- HUL focuses on soups and noodles under Knorr, having demerged its ice-cream business.
Channel Expansion and Consumer Trends
4700BC has evolved beyond cinema halls, now generating most sales via online platforms, including quick commerce and e-commerce. "With the rise of OTT entertainment and in-home snack consumption, this brand has made its way to the living room," Gupta noted. Marico plans to maintain sales in over 50 PVR-Inox theatres while expanding distribution through modern and general trade channels.
Snacking Sector Boom and Future Opportunities
India's savory snacks market, valued at ₹50,800 crore in FY24, is witnessing increased investor interest. Recent deals include General Atlantic's stake in Balaji Wafers and L Catterton's investment in Haldiram's. The market trend highlights a demand for products that blend health with tradition, such as baked namkeens and millet-based snacks. Marico's acquisition aligns with this shift, aiming to capture growth in premium, at-home indulgence.
In the December 2025 quarter, Marico reported an 8% volume growth and 27% revenue increase to ₹3,537 crore, with profit after tax rising 12% to ₹447 crore. Despite challenges like rationalized products and declining Saffola volumes, the company remains committed to expanding its foods portfolio eightfold from FY20 levels.
