Focus on innovation, expansion, technology, and talent to build a sustainable FMCG brand: Harsh Mariwala

To build a sustainable FMCG brand, one should focus on constant innovation in brands, expansions, and technological transformation and have the right talent on board, says Marico Chairman Harsh Mariwala. He also continues to bet big on the D2C brands.

He said, “D2C have been the biggest disruptors in the FMCG segment. Their emergence has transformed the FMCG industry, eliminating traditional barriers like large-scale distribution and expensive advertising. A startup can now launch a product with a fraction of the cost required earlier. So, this space is set to increase further in the coming 4-5 years.”

Marico currently has its digital first brands PureSense, a bath and skin care brand, CocoSoul, coconut-based gourmet hair and skin care brand and Fittify, nutraceutical brand and has also acquired four brands including men's grooming startup Beardo, health foods company True Elements, beauty brand Just Herbs, and plant-based products brand Plix in D2C space.

Recognizing this shift, we integrated technology into our business. Today, our sales reps use AI-driven insights to optimize their routes and recommend the right stock-keeping units (SKUs) to retailers. We also invested heavily in digital marketing and e-commerce to strengthen our presence said Mariwala.

Speaking at Marico’s Innovation Foundation’s, Inno Win Day Mariwala also shared the biggest lesson for building a successful brand, which is by constant innovation in products. He said, “In the early days, we realized that packaging innovation could be a game-changer. We transitioned from tin to plastic bottles for Parachute, making it more convenient and attractive for consumers. This decision alone helped increase our market share from 15% to 50%, and today we stand at 58% market share in the coconut oil category.”

He also talked about brand extensions to drive growth. He gave the example of Saffola, which was initially positioned for cholesterol reduction, was later expanded into a broader health-focused brand. This allowed us to introduce oats, soya proteins, and muesli, creating a successful entry into the health foods segment, he said.

He emphasised the importance of the right talent in the business. He said, “I always believed in hiring people smarter than me. Today, we have a highly skilled team that drives our growth. We also empower employees with ownership and decision-making authority.”

In today’s fast-changing world, agility is key. Organisations must move faster, reduce bureaucracy, and adopt technology to stay ahead. The success of rapid vaccine development during COVID showed how speed and efficiency can drive innovation. Governance is equally important. Ethical business practices must be followed from day one. Taking shortcuts may provide short-term gains, but in the long run, it affects credibility and culture, he said.