Marico says its food business is now worth more than Rs 450 crore & aims at Rs 800-1,000 crore in two years

However, high inflation continues to be a cause of concern. The company said multi-year high inflation and the unleashing of pent-up demand in discretionary and out-of-home categories has resulted in consumers spending less on FMCG.

“Sharp inflation in edible oils and crude-related raw & packaging materials exerted pressure on profitability through the year. However, copra provided some respite, as prices softened owing to a good crop yield and no linkage to global markets," Saugata Gupta, Managing Director & Chief Executive Officer of Marico said, adding that the company made some calculated pricing decisions and tightly managed costs, as well as invested in long-term brand building.

As for its medium-term targets, Marico said it aspires to deliver a 13-15 percent revenue growth on the back of an 8-10 domestic volume growth and  double-digit constant currency growth in the international business. On the margin front, the company aims to maintain consolidated operating margin above the threshold of 19 percent in the medium term.

From a category point of view, it expects to grow volumes in Parachute Rigids by 5-7 percent, while sustaining a double-digit value growth In Value-Added Hair Oils, high single-digit volume growth in Saffola Edible Oils and double-digit value growth in Premium Personal Care portfolios over the medium term.

“Livon Serums and the Set Wet Male Grooming portfolio grew in high double digits this year as mobility levels increased. Notably, Premium Personal Care categories have grown exponentially on Digital platforms over the last few years,” Gupta added.

Marico also reiterated its target of creating a digital-first portfolio of at least three brands to achieve a turnover of Rs 450 to 500 crore by the 2023-24 fiscal. The digital-first brand portfolio clocked an exit run rate of Rs 180 to 200 crore in the 2021-22 financial year with its past acquisitions Beardo (acquired in 2020) crossing the Rs 100 crore mark.

“Will continue to drive premiumisation of hair nourishment play, turbocharge growth in foods and scale up premium personal care and digital-first brand portfolio,” Gupta added.

The company also said that it is expanding its stockist network to expand direct reach. For the foods portfolio, as it widens, the company is setting up a dedicated food go-to-market. It has put in placed an institutionalised sales team framework to focus on local markets — as opposed to its earlier four divisions (North, South, East and West) approach — defined by consumer behaviour, brand preference and geography. "We will replicate distribution led growth in our key international markets as well," he said.

Most recently, Marico in its business update for the first quarter of the fiscal, said the sector continued to witness tepid demand, with consumers adjusting consumption in some nonessential categories and either opted for less expensive brands, or switched to smaller packs in the essential categories. Accordingly, the quarter saw volumes decline to mid-single digits for the India business, particularly dragged by a sharp drop in Saffola Oils.