Marico Aims for ₹15,000 Crore Revenue by FY27, Confident in Growth Strategy
Marico CEO Saugata Gupta confident of double-digit revenue growth, eyes Rs 15,000 crore target by FY27
The Economic TimesImage: The Economic Times
Saugata Gupta, CEO of Marico, is optimistic about achieving ₹15,000 crore (approximately $1.8 billion USD) in revenue by FY27, driven by a mix of volume and pricing strategies. The company has successfully navigated challenges, including a 60% price hike on its flagship product, Parachute, while maintaining consumer trust.
- 01Marico targets ₹15,000 crore revenue by FY27, requiring low double-digit growth.
- 02Parachute brand showed resilience despite a 60% price increase due to rising copra prices.
- 03Gupta expects EBITDA growth in the high teens for FY27 as input costs ease.
- 04The company focuses on premium offerings in its Saffola brand for sustainable profitability.
- 05Potential risks include the impact of El Niño on agricultural output and commodity prices.
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Saugata Gupta (Managing Director and CEO of Marico) has expressed confidence in the company's growth trajectory, aiming for ₹15,000 crore (approximately $1.8 billion USD) in revenue by FY27. This ambitious target requires a low double-digit growth rate, which Gupta believes is achievable through a combination of modest pricing and volume gains. Marico has demonstrated resilience, particularly with its flagship brand Parachute, which maintained slight volume growth despite a 60% price hike necessitated by a 100% surge in copra prices. With copra prices now decreasing by 30% to 32%, Gupta anticipates a return to stable growth for Parachute.
The company's EBITDA margins faced mild pressure recently, but Gupta expects recovery as input costs ease, particularly since copra constitutes 50% of Marico's commodity basket. Furthermore, Gupta projects high-teens EBITDA growth for FY27, supported by improving margins in the digital and foods sectors. Marico's strategy for its Saffola brand emphasizes quality over aggressive volume growth, focusing on premium products like Saffola Gold. However, Gupta has flagged potential risks from El Niño effects, which could impact agricultural output and commodity prices, warranting close monitoring as Marico moves forward.
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Marico's growth strategy and revenue targets could lead to increased job stability and opportunities in the FMCG sector, benefiting employees and suppliers.
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