BTTV Exclusive: Marico CMD says investments in value-added hair oils paying rich dividends

Saugata Gupta, Managing Director & Chief Executive Officer at Marico on Wednesday his FMCG firm delivered a high single-digit growth in FY26, even as there was 100 per cent increase in copra prices, which led to a 60 per cent increase in prices of 'Parachute'.

Gupta said Marico have had multiple vectors of growth, which are now firing on all cylinders. The biggest change that happened, particularly in the June quarter, is that once the copra prices came off from the peak, Marico took strategic price cuts in the loyalty packs of Parachute, he noted.

"We also perhaps coped very well with the supply chain challenges this quarter compared to some of the smaller players," Gupta told BTTV in an exclusive interview.

Thirdly, he said, investing in the premium part of value-added hair oils is paying rich dividends. He noted that that part of the portfolio delivered high-teen volume growth.

Gupta said distribution initiative Setu too is driving a lot of range selling and high quality growth in the secondary brands. A range selling is a sales strategy, where field representatives push a wider variety of products from a brand into a single retail outlet.

"So all in all, it's multiple cylinders firing. And we believe that we are extremely confident of delivering a high-single digit growth in the balance part of the year," The Marico CMD said adding that "If we get it right, we will deliver double digits once in a while in some quarters."

Gupta said ever since H2FY26 when the GST rationalization happened, FMCG volumes have recovered. Even if there was a lot of adversity in terms of the Middle East war, Indian consumers have largely relatively got insulated compared to some of the other emerging markets across where Marico is present, Gupta said.

"Also in terms of, you know, whenever there are supply chain and other challenges, we see organized players coping with it better and therefore there could be some kind of a consolidation of shares amongst the unorganized players," he said.

He said the encouraging part is that the FMCG major had expected a significant rainfall deficit in June. The overall rainfall deficit has reduced, Gupta said adding that "we is pretty optimistic of demand growing and, sustaining."

Gupta of Marico sees some headwinds with respect to inflation.

"But in our case, we faced unprecedented inflation last year, so in our mix the inflation impact is much lower because we believe that copra is going to stay maybe around 30-35 per cent lower from its peak last year," Gupta said.

Given that Marico has multiple vectors of growth, including strong diversification journey, he sees the company sustaining recent growth trends.

"As far as A&P spends is concerned, even if you look at our track record, in even in very tough conditions we have continued to invest behind A&P. We are never shy of investing behind is investing behind long-term brand equity and investing behind talent and capability, and this has been in irrespective of cycles," Gupta said.

He said the reason Marico is continuing to invest behind A&Ps is that there are multiple vectors of growth.

"We are doing fewer bets. For example in India we are focusing on shampoo, almond and cold press oil, and even foods besides the digital brands. There is journey which we are doing in terms of reducing concentration risk in premiumization journey international business. Given the current conditions, even if crude were to be around $85-90 levels, I think we are pretty confident of delivering high single-digit Ebitda growth and even touching 20 per cent per cent plus as far as Ebitda is concerned," Gupta said.