Marico Ltd, a leading player in fast-moving consumer goods (FMCG), is actively exploring acquisitions in South Asia to bolster its growth strategy in the region.
The international business constitutes 26 percent and has been consistently achieving a robust growth rate over the past three to four years.
“We are confident in sustaining double-digit constant currency growth in international markets. Additionally, we’re expanding our presence in the Middle East, North Africa, and South Africa markets. While we may consider strategic acquisitions in certain South Asian markets from an M&A perspective, we firmly believe in the potential for healthy growth within our existing business,” stated Pawan Agrawal, CFO of Marico Limited.
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In 2022, Marico South-East Asia Corporation, a subsidiary of the Mumbai-based company, acquired full ownership of Beauty X, a company in Vietnam holding female personal care brands such as Purité de Prôvence and Ôliv, for INR 172 crore.
As per reports, the company is planning to expand its international business and grow its product portfolio for the Middle East and North Africa regions (MENA).
Marico Ltd recorded a 5.29 percent rise in its consolidated net profit for the quarter ended in March, reaching INR 318 crore compared to INR 302 crore in the corresponding quarter of the previous year. This marks a 16.9 percent decline from the net profit of INR 383 crore reported in the December quarter. Additionally, revenue from operations increased by 1.69 percent to INR 2,278 crore during the quarter, compared to INR 2,240 crore in the same quarter last year.
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The company’s international business saw a 10 percent constant currency growth, driven by an 8 percent constant currency growth in Bangladesh. Meanwhile, the MENA region maintained strong growth momentum, achieving a 19 percent constant currency growth.
Saugata Gupta, MD & CEO of Marico Ltd, stated, “The expansion of our businesses in MENA and South Africa has significantly bolstered the growth framework of our international operations. We are committed to achieving robust revenue-driven earnings growth in the near and medium term, supported by the continually improving operating environment.”