Marico has set its sights on crossing the ₹15,000 crore revenue-mark by FY27-end. The FMCG major said the focus will not just be on topline growth but also improving the profitability profile of foods and digital-first brands portfolio. In an interaction with businessline, Saugata Gupta, MD & CEO, Marico Ltd said while inflationary pressures will continue to playout in Q2, the company is reasonably well-positioned to sustain healthy rural growth.
Edited excerpts:
What’s your view on the overall consumption outlook as well as on rural growth ? Will you need to take more price hikes ?
The sector has been delivering stronger growth since Q3 following the GST rationalisation. The June quarter presented a mix of both tailwinds and headwinds. Provided there are no major inflationary shocks, we expect consumption trends to remain reasonably stable. Naturally, some inflationary pressures will continue to play out in Q2, and we should be prepared to witness slightly elevated crude levels even in the next few quarters, as volatility is likely to stay. Historically, larger players have been better positioned to navigate such disruptions than the smaller competitors. While we remain watchful of the external environment, we are not overly concerned at this stage.
In terms of rural growth, we are closely monitoring how the monsoon plays out, which could have an impact in the second half of the year. Unless there is significant deficiency in rainfall, we believe we are reasonably well-positioned to sustain healthy rural growth. For us, both urban and rural general trade channels have delivered double-digit growth. A key contributor to our strong rural performance has been Project Setu, which focuses on improving the quality of direct distribution and investing in technology-led rural distribution capabilities.
We have already implemented selective pricing actions across value-added hair oils (VAHO) and in certain foods categories, factoring in current crude levels. Unless there is a further escalation in volatility, we do not foresee see the need for additional price hikes
Will you continue to look at inorganic growth opportunities in India and international markets ?
We believe we have been ahead of the curve when it comes to acquisitions. Our approach has consistently been to begin with a minority stake, partner closely with the founders, participate in the growth journey and then move towards full acquisition over time. We will continue to evaluate more acquisitions that are strategically relevant and enable us to fill gaps in our portfolio. Having completed three acquisitions in the beginning of the calendar year, we have addressed many of these portfolio gaps. We also want to replicate this playbook organically and inorganically in other markets such as Vietnam and in some parts of the West Asia .
What will be the key growth drivers for achieving the target of revenues of over ₹15,000 crore by FY27-end ?
We delivered a strong performance in the June quarter. With our ambition to achieve ₹15,000 crore revenue by this fiscal end, we expect to garner high single-digit volume growth in the India business and mid-teens constant currency growth in the international business. Our strategy of making fewer, bigger, bolder bets, coupled with our journey of premiumization and diversification agenda, is not only driving topline growth but has also significantly improved the profitability profile of our Foods and Digital businesses. As a result, there are multiple growth drivers across the portfolio. We have also adopted a much sharper approach to resource allocation by concentrating investments behind fewer bets.
Premiumisation trends have been gaining traction for key FMCG players.How is the portfolio scaling up in contribution to overall business ? Also, how do you see the digital-first brands, which delivered ₹1100 crore ARR in Q1, scaling up over the next five years?
The premium portfolio currently contributes around 25 per cent to our India business, and we expect this to exceed 30 per cent by next year. In the international business, the premium portfolio contributed approximately 30 per cent of revenues last year and we expect this to increase to about 40 per cent by FY30.
Our digital-first brands should continue to grow at 20-25 per cent annually, but equally important is improving profitability. We are aiming for double-digit profitability levels across the portfolio. The focus will remain on building sustainable growth, both in terms of bottom line and topline. Over time, these brands will serve as key accelerators of Marico’s future growth journey.
Published on August 5, 2026
