Saffola a Rs 2,000-crore-plus brand; worst of inflation is over, says Marico MD & CEO
- ByStartupStory | February 20, 2023
Witnessing a promising growth in its food business, Marico’s master brand, Saffola’s worth crossed the ₹2,000 crore mark, said Marico MD & CEO Saugata Gupta.
He also said that the economy has moved past the worst of inflation and threw light upon FMCG sector growth. The sector is recovering with time amid the comeback of the rural market.
“I think the worst is behind,” said Gupta, adding, “Overall for FMCG, we see a gradual recovery, but that has to be led by rural. The City has been decent. Saffola master brand, if we put together, it is a ₹2,000-crore-plus brand,” said Saugata Gupta.
He believed that the rural FMCG market is expected to have a turnaround in the next 2-3 quarters. It witnessed a decline in the last 4-5 quarters.
Saugata also added that food continues to do well at the industry level. Whereas, the home and personal care category is struggling a bit. Mainly due to high inflation last year. With easing inflation, MaricoMD expects “better margins” in the top-line.
General trade is already doing well. Whereas, the urban market and modern trade are recovering to pre-COVID levels. He expressed confidence in his company’s growth in India but expressed hurdles of inflation and currency headwinds in the company’s growth. “We continue to be resilient and we are confident of double-digit constant currency growth,” said Saugata.
Marico, which owns brands such as Parachute, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon etc., get around one-third of its domestic sales from the rural markets.
“Our rural contribution is lower because of our food and Saffola business. Out rural contribution is in the mid-30s,” he said,
About the outlook, Gupta said: “You will see a growth improvement as we move forward in the next couple of quarters in the India business and as far as international business is concerned, there are some inflation and currency headwinds. We continue to be resilient and we are confident of double-digit constant currency growth.”
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