Marico targets ₹15,000 crore revenue by FY27, focusing on profitable growth. CEO Saugata Gupta outlines premiumisation push, digital brand scaling, and selective price hikes amid crude volatility.
Alpha Score of 67 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Marico has set a revenue target of ₹15,000 crore by the end of FY27, with a sharper focus on profitability rather than just topline growth. The FMCG company said it aims to improve the earnings profile of its foods and digital-first brands while navigating inflationary pressures that will persist into the second quarter.
Saugata Gupta, managing director and chief executive officer, said the company is reasonably well-positioned to sustain healthy rural growth unless monsoon rainfall is significantly deficient. The company has already taken selective price increases in value-added hair oils and some foods categories based on current crude levels. Gupta said the company does not foresee additional price hikes unless volatility escalates further.
Marico delivered 23% revenue growth in the June quarter. For the current fiscal year, the company expects high single-digit volume growth in the India business and mid-teens constant currency growth in international markets. The strategy rests on "fewer, bigger, bolder bets" and a premiumisation push that has already improved profitability in foods and digital businesses, Gupta said.
The premium portfolio now accounts for about 25% of the India business, a share Marico expects will exceed 30% next year. In the international business, premium products contributed roughly 30% of revenue last year, with a target of 40% by FY30.
Digital-first brands generated an annualised revenue run rate of ₹1,100 crore in the first quarter. Marico expects those brands to grow 20-25% annually while targeting double-digit profitability levels across the portfolio. "The focus will remain on building sustainable growth, both in terms of bottom line and topline," Gupta said.
Marico completed three acquisitions earlier this calendar year that addressed portfolio gaps. The company will continue evaluating further acquisitions that are strategically relevant, Gupta said, adding that Marico wants to replicate its organic and inorganic playbook in markets such as Vietnam and parts of West Asia.
The consumption outlook has been stronger since the third quarter following GST rationalisation, Gupta said, though crude volatility is expected to persist for several more quarters. He said larger players have historically navigated such disruptions better than smaller competitors. "While we remain watchful of the external environment, we are not overly concerned at this stage," he said.
Project Setu, which focuses on direct distribution quality and technology-led rural distribution capabilities, has been a key contributor to rural performance, Gupta said. Both urban and rural general trade channels delivered double-digit growth for the company.
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, Gupta said.
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