Two-third of acquisitions by FMCG firms in last five fiscals in direct-to-consumer (D2C) space: Crisil Ratings
- IBEF
- September 26, 2025
India’s FMCG sector is increasingly leveraging acquisitions of direct-to-consumer (D2C) brands to drive growth, premiumisation, and innovation, according to Crisil Ratings. Over the past five fiscals, around two-thirds of acquisitions by FMCG players have been in the D2C space, providing established firms with access to niche categories, personalised consumer insights, and rapid feedback loops. Notable deals include Hindustan Unilever Ltd.’s acquisition of Minimalist for Rs. 2,706 crore (US$ 304 million), Marico’s purchase of Plix for Rs. 380 crore (US$ 42.8 million), Emami Ltd.’s takeover of The Man Company for Rs. 272 crore (US$ 30.6 million), and ITC Ltd.’s buyout of Yoga Bar for Rs. 225 crore (US$ 25.3 million). These acquisitions allow FMCG companies to expand into premium and health-oriented segments while supporting innovation through digital channels and data-driven insights.
The D2C firms benefit by overcoming scalability and profitability challenges, with many gaining market access that would have been difficult independently. Around 60% of these acquisitions have been in personal care, while the rest are in food and beverages, supporting the premiumisation journey. The financial impact on acquirers remains modest, with average acquisition costs under 5% of net worth, keeping credit profiles stable. Crisil noted that while post-acquisition scaling will be critical for long-term profitability, these strategic moves reinforce India’s FMCG sector as a hub of innovation, growth, and premium offerings.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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