Marico Eyes 25% Domestic Revenue From Foods, Premium Personal Care By FY27

FMCG giant Marico has set ambitious targets for diversifying its revenue streams. According to its annual report, the company expects that by the financial year 2026-27, one-fourth of its domestic revenue will originate from its expanding Foods and Premium Personal Care segments. 

This shift is complemented by a predicted gradual growth in its core categories, buoyed by favourable macroeconomic indicators and a normal monsoon forecast. Additionally, Marico projects that from the first quarter of FY25, its domestic revenue growth will outpace volume growth due to an upward bias in commodity prices.

In the fourth quarter of FY24, Marico reported a positive trajectory in consolidated revenue growth, which is expected to persist throughout FY25. Despite a slight downturn in the fiscal year ending 31 March 2024—with consolidated turnover at Rs 9,653 crore, a 1 per cent decline and domestic revenue at Rs 7,132 crore, a 3 per cent drop—the company remains optimistic. 

Marico plans to focus on "differential growth" within its urban-centric and premium portfolios through organized retail and e-commerce channels.

The company aims to aggressively diversify its Foods and Premium Personal Care portfolios while enhancing profitability. The Foods segment is targeted to grow over 20 per cent CAGR, doubling its scale by FY27. Similarly, Marico anticipates its Digital-first portfolio’s Annualised Run Rate to double by FY27. Currently, Foods and Premium Personal Care contribute 20 per cent to domestic revenue, a figure projected to increase to 25 per cent by FY27.

Marico has extended its Saffola brand to include products catering to various health-conscious segments, such as breakfast, in-between meals, healthy snacking, immunity, plant-based protein, and nutraceuticals. The Premium Personal Care portfolio, especially its Digital-first brands, has shown remarkable progress. Beardo, one of its brands, has tripled its growth since FY21, achieving positive EBITDA and targeting double-digit EBITDA margins in the upcoming year. Just Herbs has also surpassed the H1 billion Annualised Run Rate.

Internationally, Marico faced macroeconomic and currency devaluation challenges in certain regions but remained resilient. The company saw strong growth in the MENA and South Africa markets and a recovery in Bangladesh, providing a robust margin outlook for the medium term.

Marico’s medium-term strategy aims for double-digit revenue growth through consistent market share gains in domestic core portfolios, accelerated growth in Foods and Premium Personal Care and double-digit constant currency growth in its international business. The company also expects operating margins to improve over the coming years, driven by leverage benefits and the premiumisation of its portfolios both domestically and internationally.