Sanjay Ghodawat Group’s FMCG arm Ghodawat Consumer Limited (GCL) has acquired Delhi-based startup To Be Honest (TBH) for an undisclosed amount.
With this, TBH’s entire team will join GCL and continue to develop a portfolio of healthy snacking food. The startup will also become a part of GCL’s Impulse division.
The acquisition will help GCL to expand its product offerings by adding low-calorie snacks to existing food products.
The development comes two months after GCL acquired beverage brand Coolberg for an undisclosed amount.
Founded in 2017 by IIT and IIM graduates Mayank Gupta, Ritika Agrawal and Anuj Ghanghoria, TBH sells vegetable and fruit-based snacks across India.
Explaining its manufacturing process, TBH shared that its snacks retain more than 90% of the nutrients from vegetables and fruits.
“We are a young FMCG brand that has worked successfully towards creating a new snack category in India. We are very excited to partner with GCL. I believe that their domain expertise and infrastructure will help us in expanding to newer markets and increasing our unique product portfolio,” said Mayank Gupta, founder of TBH.
With a presence in ecommerce marketplaces and retail stores, TBH follows an omnichannel format. It has a presence in five nations including India and also, offers services to various hotels, restaurants and cafes including Taj, Oberoi, and Olive.
Set up in 2013, GCL, on the other hand, initially sold edible oils but later diversified its product portfolio by introducing staples, impulse, homecare, and personal care categories.
GCL claims to have clocked a revenue of INR 1400 Cr in the financial year 2021-22 and further aims to achieve an ARR of INR 2000 Cr by the fiscal year 2022-23.
The company stated that its manufacturing facilities, extensive rural and urban penetration, efficient trade marketing, distribution network, and business ethics are some key factors that helped grow its revenue in FY22.
“TBH acquisition is very strategic as it gives us an entry into the health-conscious snacking segment. This is also timely given the heightened focus on health and fitness. It is a testament to our commitment to enhancing lives globally. Our goal is for the consumer to utilize at least one product from GCL throughout the day,” said Shrenik Ghodawat, managing director of GCL.
In India, it faces competition from the likes of FZYEZY, Allzenfoods, Crunchy Munchy Foods, Sacred Forest and HALO Snacks, among others.
According to a Statista report, India’s snack food market is pegged at $66.9 Bn in 2023, growing at a CAGR of 7.52% during 2023-27.
Meanwhile, according to a report by Inc42, the Indian D2C market is growing at a CAGR of 25% to pass the $100 Mn mark by 2025.
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