FMCG giant Marico aims to enhance its presence in current categories while leveraging innovations to double its food business by FY27. The͏͏ company͏͏ anticipates͏͏ a͏͏ growth͏͏ rate͏͏ of͏͏ 20-25%͏͏ CAGR͏͏ for͏͏ this͏͏ segment.
Collaboration͏͏ with͏͏ NIFTEM͏͏ for͏͏ Enhanced͏͏ R&D͏͏ and͏͏ Skill͏͏ Development:
The͏͏ company͏͏ has͏͏ signed͏͏ an͏͏ MoU͏͏ with͏͏ the͏͏ National͏͏ Institute͏͏ of͏͏ Food͏͏ Technology͏͏ Entrepreneurship͏͏ and͏͏ Management͏͏ (NIFTEM)͏͏ at͏͏ World͏͏ Food͏͏ India͏͏ 2024.͏͏ This͏͏ collaboration͏͏ will͏͏ focus͏͏ on͏͏ advancing͏͏ skill͏͏ development,͏͏ technology͏͏ sharing,͏͏ and͏͏ enhancing͏͏ capabilities͏͏ within͏͏ Marico’s͏͏ R&D͏͏ operations.
Continue͏͏ Exploring:͏͏ Marico expects͏͏ foods and͏͏ premium͏͏ personal͏͏ care͏͏ segments͏͏ to͏͏ drive͏͏ 25%͏͏ of͏͏ revenue͏͏ by͏͏ FY27
During͏͏ the͏͏ WFI͏͏ Conclave,͏͏ Vaibhav͏͏ Bhanchawat,͏͏ Chief͏͏ Operating͏͏ Officer͏͏ -͏͏ India͏͏ &͏͏ Foods͏͏ Business͏͏ at͏͏ Marico͏͏ Ltd,͏͏ stated,͏͏ “We͏͏ have͏͏ achieved͏͏ significant͏͏ success͏͏ in͏͏ the͏͏ food͏͏ category͏͏ over͏͏ the͏͏ past͏͏ few͏͏ years.͏͏ Our͏͏ goal͏͏ is͏͏ to͏͏ double͏͏ our͏͏ foods͏͏ business͏͏ by͏͏ FY27,͏͏ which͏͏ includes͏͏ the͏͏ Plix͏͏ and͏͏ True͏͏ Elements͏͏ portfolios,͏͏ aligning͏͏ perfectly͏͏ with͏͏ our͏͏ overall͏͏ diversification͏͏ strategy.”
Innovative͏͏ Product͏͏ Launches͏͏ Set͏͏ to͏͏ Drive͏͏ Growth:
He͏͏ added,͏͏ “Examining͏͏ the͏͏ penetration͏͏ levels͏͏ in͏͏ the͏͏ categories͏͏ where͏͏ we͏͏ operate͏͏ reveals͏͏ significant͏͏ growth͏͏ potential.͏͏ Our͏͏ recent͏͏ launches,͏͏ including͏͏ the͏͏ Masala͏͏ Oats͏͏ gourmet͏͏ range,͏͏ Masala͏͏ Millets,͏͏ Crunchiez͏͏ Millet͏͏ Cones,͏͏ and͏͏ Muesli,͏͏ are͏͏ just͏͏ the͏͏ beginning.͏͏ As͏͏ we͏͏ expand͏͏ these͏͏ offerings,͏͏ we͏͏ anticipate͏͏ a͏͏ major͏͏ unlock͏͏ in͏͏ growth.͏͏ Additionally,͏͏ we͏͏ have͏͏ a͏͏ robust͏͏ innovation͏͏ pipeline͏͏ aimed͏͏ at͏͏ capitalising͏͏ on͏͏ key͏͏ consumption͏͏ trends͏͏ related͏͏ to͏͏ convenience͏͏ and͏͏ health.”
Project͏͏ SETU:͏͏ Expanding͏͏ Store͏͏ Reach
Marico͏͏ aims͏͏ to͏͏ expand͏͏ its͏͏ direct͏͏ reach͏͏ to͏͏ over͏͏ 1.5͏͏ million͏͏ stores͏͏ within͏͏ three͏͏ years͏͏ through͏͏ its͏͏ Project͏͏ SETU͏͏ initiative.͏͏ Bhanchawat͏͏ noted͏͏ that͏͏ the͏͏ food͏͏ portfolio͏͏ will͏͏ be͏͏ a͏͏ key͏͏ beneficiary͏͏ of͏͏ this͏͏ strategy.͏͏ “We͏͏ will͏͏ utilise͏͏ the͏͏ distribution͏͏ strength͏͏ of͏͏ our͏͏ core͏͏ brands͏͏ to͏͏ enhance͏͏ the͏͏ reach͏͏ of͏͏ our͏͏ new͏͏ portfolios.͏͏ For͏͏ example,͏͏ Masala͏͏ Oats͏͏ currently͏͏ has͏͏ a͏͏ distribution͏͏ reach͏͏ of͏͏ over͏͏ 250,000͏͏ outlets,͏͏ and͏͏ this͏͏ will͏͏ continue͏͏ to͏͏ grow.͏͏ However,͏͏ each͏͏ category͏͏ will͏͏ have͏͏ its͏͏ own͏͏ unique͏͏ approach,͏͏ so͏͏ not͏͏ everything͏͏ will͏͏ be͏͏ mass͏͏ marketed,”͏͏ he͏͏ added.
In͏͏ response͏͏ to͏͏ a͏͏ question͏͏ about͏͏ the͏͏ expansion͏͏ strategy͏͏ for͏͏ the͏͏ Saffola͏͏ foods͏͏ portfolio,͏͏ Bhanchawat͏͏ explained,͏͏ “We͏͏ are͏͏ concentrating͏͏ on͏͏ expanding͏͏ our͏͏ Total͏͏ Addressable͏͏ Market͏͏ (TAM)͏͏ and͏͏ reaching͏͏ various͏͏ consumer͏͏ segments.͏͏ Additionally,͏͏ we͏͏ aim͏͏ to͏͏ cater͏͏ to͏͏ different͏͏ consumption͏͏ occasions͏͏ throughout͏͏ the͏͏ day͏͏ with͏͏ our͏͏ offerings.”
