Marico is increasing its focus on the healthy snacking segment, using its Saffola brand to cater to the growing demand for convenient and nutritious food options, said Vaibhav Bhanchawat,͏͏ Chief͏͏ Operating͏͏ Officer͏͏ of͏͏ India͏͏ and͏͏ Foods͏͏ Business͏͏ at͏͏ Marico.
Bhanchawat͏͏ noted͏͏ that͏͏ the͏͏ healthy͏͏ snacking͏͏ market͏͏ is͏͏ experiencing͏͏ substantial͏͏ growth,͏͏ fueled͏͏ by͏͏ consumers’͏͏ demand͏͏ for͏͏ wellness-focused͏͏ products͏͏ that͏͏ do͏͏ not͏͏ compromise͏͏ on͏͏ taste.
He͏͏ said,͏͏ “Our͏͏ strategic͏͏ focus͏͏ on͏͏ convenience͏͏ aligns͏͏ with͏͏ urban͏͏ consumers’͏͏ demand͏͏ for͏͏ healthy͏͏ snacking,͏͏ offering͏͏ ready-to-eat͏͏ and͏͏ ready-to-cook͏͏ solutions͏͏ that͏͏ suit͏͏ modern͏͏ lifestyles.”
Marico͏͏ has͏͏ positioned͏͏ Saffola͏͏ to͏͏ address͏͏ this͏͏ demand͏͏ with͏͏ its͏͏ innovative͏͏ offerings,͏͏ including͏͏ millet-based͏͏ products͏͏ such͏͏ as͏͏ Saffola͏͏ Crunchiez͏͏ and͏͏ Saffola͏͏ Masala͏͏ Oats.
Recently,͏͏ the͏͏ FMCG͏͏ giant͏͏ signed͏͏ a͏͏ memorandum͏͏ of͏͏ understanding͏͏ (MoU)͏͏ with͏͏ the͏͏ National͏͏ Institute͏͏ of͏͏ Food͏͏ Technology͏͏ Entrepreneurship͏͏ and͏͏ Management͏͏ (NIFTEM)͏͏ to͏͏ enhance͏͏ skill͏͏ development,͏͏ facilitate͏͏ technology͏͏ sharing,͏͏ and͏͏ improve͏͏ capabilities͏͏ at͏͏ its͏͏ R&D͏͏ operations.
Ambitious͏͏ Revenue͏͏ Goals͏͏ for͏͏ FY27:
According͏͏ to͏͏ the͏͏ company’s͏͏ quarterly͏͏ regulatory͏͏ update͏͏ for͏͏ Q1͏͏ FY25,͏͏ it͏͏ aims͏͏ to͏͏ achieve͏͏ a͏͏ 20-25%͏͏ CAGR͏͏ in͏͏ the͏͏ foods͏͏ segment,͏͏ targeting͏͏ to͏͏ double͏͏ its͏͏ FY24͏͏ revenue͏͏ by͏͏ FY27,͏͏ following͏͏ successful͏͏ supply͏͏ chain͏͏ and͏͏ go-to-market͏͏ refinements͏͏ implemented͏͏ in͏͏ FY24.͏͏ The͏͏ digital-first͏͏ portfolio͏͏ is͏͏ projected͏͏ to͏͏ reach͏͏ an͏͏ ARR͏͏ of͏͏ INR͏͏ 550-600͏͏ crore͏͏ by͏͏ the͏͏ end͏͏ of͏͏ FY25,͏͏ the͏͏ company͏͏ stated.
Continue͏͏ Exploring:͏͏ Marico aims͏͏ to͏͏ double͏͏ food͏͏ business͏͏ by͏͏ FY27͏͏ with͏͏ focus͏͏ on͏͏ innovation͏͏ and͏͏ distribution͏͏ expansion
The͏͏ company͏͏ is͏͏ targeting͏͏ strong͏͏ revenue-driven͏͏ earnings͏͏ growth͏͏ in͏͏ the͏͏ near͏͏ and͏͏ medium͏͏ term.͏͏ In͏͏ the͏͏ previous͏͏ quarter,͏͏ the͏͏ Foods͏͏ segment͏͏ recorded͏͏ a͏͏ substantial͏͏ 37%͏͏ year-on-year͏͏ value͏͏ growth,͏͏ with͏͏ Saffola͏͏ Oats͏͏ achieving͏͏ over͏͏ 20%͏͏ growth,͏͏ while͏͏ the͏͏ relatively͏͏ newer͏͏ franchises͏͏ also͏͏ expanded͏͏ as͏͏ anticipated.
Discussing͏͏ its͏͏ distribution͏͏ strategy,͏͏ Bhanchawat͏͏ stated,͏͏ “Marico͏͏ has͏͏ effectively͏͏ leveraged͏͏ its͏͏ robust͏͏ distribution͏͏ network͏͏ in͏͏ both͏͏ traditional͏͏ and͏͏ modern͏͏ retail͏͏ channels͏͏ to͏͏ ensure͏͏ that͏͏ the͏͏ Saffola͏͏ snacking͏͏ range͏͏ reaches͏͏ urban,͏͏ semi-urban,͏͏ and͏͏ rural͏͏ areas͏͏ across͏͏ the͏͏ country.͏͏ According͏͏ to͏͏ a͏͏ Nielsen͏͏ report,͏͏ our͏͏ current͏͏ food͏͏ distribution͏͏ network͏͏ spans͏͏ approximately͏͏ 2.5͏͏ lakh͏͏ outlets.”
Expanding͏͏ Online͏͏ and͏͏ Quick͏͏ Commerce͏͏ Presence:
The͏͏ FMCG͏͏ company͏͏ is͏͏ expanding͏͏ its͏͏ online͏͏ presence͏͏ through͏͏ major͏͏ e-commerce͏͏ platforms,͏͏ with͏͏ the͏͏ integration͏͏ of͏͏ quick͏͏ commerce͏͏ (Q-commerce)͏͏ playing͏͏ a͏͏ crucial͏͏ role͏͏ in͏͏ its͏͏ strategy͏͏ to͏͏ swiftly͏͏ deliver͏͏ healthy͏͏ snacks͏͏ to͏͏ consumers.
Future͏͏ Innovations͏͏ on͏͏ the͏͏ Horizon:
Looking͏͏ ahead,͏͏ Marico͏͏ aims͏͏ to͏͏ continue͏͏ innovating͏͏ by͏͏ introducing͏͏ gourmet͏͏ flavours͏͏ and͏͏ expanding͏͏ its͏͏ healthy͏͏ product͏͏ range͏͏ while͏͏ deepening͏͏ its͏͏ distribution͏͏ channels͏͏ to͏͏ serve͏͏ consumers͏͏ in͏͏ both͏͏ urban͏͏ and͏͏ rural͏͏ markets.
