Marico’s food brand Saffola is now worth more than Rs 2,000 crore. Saugata Gupta, managing director and chief executive officer of Marico in a PTI report said that though the urban market has performed decently for the brand, the rural market suffered a decline in the last four to five quarters. The homegrown FMCG company receives one-third of its domestic sales from the rural market. However, he sees a gradual recovery for FMCG companies when the demand in rural markets will pick up.
He further added that, though the food category is performing well for the company, it is the home and personal care segments that are feeling the heat. The company’s sales from channels such as general trade declined in mid-single digits and rural is still behind urban. While sales from modern trade channels and e-commerce grew in high double digits.
The multinational consumer goods company, which owns brands like Parachute, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon etc, plans to add more options in the food segment. Recently, Marico entered into ready-to-eat snacks in line to increase the footprint of its food business. Marico under the brand Saffola sells oats, instant noodles, honey, spreads, soya nuggets etc.
As per media reports, Marico’s Q3 FY23 net profit rose five percent to Rs 333 crore, and the revenue was up by 2.6 percent to Rs 2,470 crore. In the December quarter, Marico’s food business grew by 31 percent, and the category of hair oils saw a decline by three percent.