Marico eyeing ₹850-1,000 crore food business through Saffola by FY24

Marico Managing Director and CEO Saugata Gupta said the firm has expanded the Saffola brand into immunity, foods and the recently launched Mayonnaise and Peanut Butter.

Replying to shareholders’ queries at the AGM, Gupta said, “We will continue to launch a significant aggressive innovation program under the Saffola brand, which is in line with our aspiration. 850-1,000 crore food portfolio by FY24.”

marico Will continue to launch and expand the addressable market in the segment through Saffola or any new brand.

Saffola has expanded its brand base with a range of products including noodles, oats, honey and immunity booster Chyawanprash apart from edible oil.

Talking about the food portfolio that Marico has built, Gupta said that Marico has already achieved the aspiration to reach 450-500 crore top-line in FY22. Its digital-first brand portfolio clocks exit run rate 180-200 crores in FY22.

“Extended to Cross Beardo” 100 crore exit run rate in FY22. we wish to build 450-500 crore portfolio by FY24 through a mix of organic and inorganic brands,” said a transcript of the AGM shared by Marico with the exchanges on Thursday.

Currently, e-commerce is contributing 9 per cent of Marico’s sales and the contribution from this segment is growing further.

“Our R&D spending is in line with industry benchmarks and we continue to increase our investment in R&D to drive innovation and research,” Gupta said.

Responding to a query on capacity utilization, he said Marico’s overall capacity utilization is between 80 and 95 per cent.

on the question of evaluation of Marico’s Leading brands – Saffola and Parachute, Gupta replied: “We do not evaluate our self-made brands. Only when we acquire, we evaluate”.

When asked if Marico has any plans to foray into plant-based meat, Gupta said: “We plan to grow the addressable market of the Saffola brand as part of our food journey and as you know We have already launched Soya Chunks and hence you will see future innovations in the next few years”.

The company aspires to deliver 13-15 per cent revenue growth in the medium term on the back of 8-10 per cent domestic volume growth in domestic business and double-digit constant currency growth in international business.

“We expect operating margin to remain stable at 19 per cent in the medium term,” Gupta said.

(with inputs from PTI)

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