Marico Ltd, who is expanding in the healthy food segment with the Saffola brand, provides that its food activity exceeds the vertical of edible oil, said the CEO of the company and the CEO Saugata Gupta.Marico, whose food activity has crossed the inr-Mark in 900 in Fy25, is expanding in the segment by introducing oats, honey and Saffola snacks, among other products, in the rapid growth space.
The FMCG Major cultivated at home, which also operates with brands such as “True Elements” and the Plix plant -based nutritional wallet, sees a significant opportunity for the expansion of the TAM (total addicable market), said.
“As for Saffola, we continue to grow the food franchise. And food franchise is more profitable than edible oil. The food sector involves a significant Tam expansion,” said Gupta to PTI. For Saffola’s oats and Masala’s oats, there is a room to improve penetration, distribution and must be further increased with greater awareness and evidence, he said.
Marico It also aspires to have a “significant presence” in the honey and Muesli segments in which it operates with the Saffola brand. In addition, it also plans to grow in the snack segment by expanding his saffola cruncie.
“Therefore, overall, we are in a strong position to offer a growth of 25 % in the food segment. Saffola, as a brand, focuses on the offer of” best for you “products, emphasizing healthy choices at every stage of life. This journey will continue and perhaps from 3 to 4 years, from today, it could become larger than the edible oil of Saffola,” said Gupta.
In the exercise25, the consolidated revenues of Marico, which included international affairs, crossed the inr brand 10,000 crores. His autonomous revenues, which mainly consist of the revenue of India, were 7,581 inr.
Marico’s food activity contributed 11 % to Marico’s internal business in exercise 25, recording a growth of 33 %, while Saffola oils have contributed to 19 % to national companies, recording a low growth of the single volume in the same period.
When asked if Marico intends to introduce multiple brands in his growing food activity, Gupta said: “No! With Saffola, True Element and Plix, we have enough on our dish and I don’t see any new brand in food”.
In his latest annual report, the president of Marico Harsh Mariwala had spoken of the company’s move on “downsizing towards the revenue of 20,000 inr by 2030”, which will be guided by a roadmap rooted in innovation, in the construction of intentional brands and operational excellence.
To the question about how Marico would have achieved this goal, GUPTA said: “What we have said is that we will double in five years, which is about 13 % more, a compound annual growth rate, which means that our nucleus must offer high single figures. The diversified business must continue to grow at 20 % more and the international company grows in double figure.
“I think we should be able to do it,” he added.
Marico, who also has popular brands such as Parachute and Livon, is investing in a “constant rhythm” in its production capacity to satisfy the growing demand.
Although GUPTA has not shared any figure, which Marico has allocated or intends to spend, said that the company is receiving a “judicious” call on investments ranging from automation to integrate new age skills such as artificial intelligence.
“What is most important is to focus on the ability of ability, distribution and digital capacity … we are also investing a lot in automation and we are investing and exploring how to use the IA and many more analyzes in the decision -making process. We are not so intensive.
Marico is also investing in A&P (advertising and promotion) with significant efficiency. According to GUPTA, in the last two years, Marico has been among the few companies that have not reduced the A&P expenditure, despite the pressure on costs and margins.
“We are seeing a lot of diversion towards shopping for Atl (above the line) compared to non -average expenditure, and the other area of interest is a digital expenditure. We believe that investing in A&P, especially in Atl, which is for the equity of the brand, is extremely critical, above all because we have a strong diversification journey. Our expenditure A&P will continue to be in the same area while we move in advance,” he said.
Marico provides for two -digit internal growth in the next quarters, led by core brands and new businesses. The company aims at an increase in revenue by 25% this year, powered by price strategies. The international business should grow in half of teenagers. The FMCG sector provides for a better growth of the volume, with a constant rural expansion and a gradual urban recovery.
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