Marico, a prominent Indian FMCG company, is poised for a revival in its revenue growth in the latter half of the fiscal year. According to Saugata Gupta, the Managing Director and CEO of Marico, the company expects a rebound in rural demand and a resurgence in revenue growth as the influence of domestic market inflation gradually wanes.
During the past two quarters, Marico has undertaken price adjustments in response to decreasing inflation, which has impacted its revenue growth to some extent. Nevertheless, this strategic manoeuvre has empowered the company to either capture or sustain market share and enhance its presence in specific product categories.
Saugata Gupta highlighted the successful diversification initiatives within Marico’s food and premium personal care business. He mentioned the company’s commitment to improving gross margins in the food segment and reducing cash expenditures in the digital aspect of premium personal care.
Gupta went on to reveal the company’s goal of increasing the share of food products within the Saffola brand’s revenue to 50% over the next four years. Marico’s Saffola brand already includes items such as oats, honey, soya, and noodles. Marico has also expanded its portfolio by acquiring premium food brands Plix and True Elements and plans to further expand its food businesses, as it believes that profitability increases with scale. Marico’s recent additions also encompass digitally-focused brands like Set Wet, Beardo, and Just Herbs.
In the fiercely competitive oats market, Marico has outshone its competitors, including Quaker Oats. Gupta highlighted that the next two products exhibiting robust growth potential are honey and soya. He also conveyed his enthusiasm for the snacking segment, revealing that Marico is currently in the developmental stage of ragi chips.
