Marico Industries is counting fast on series of product formulations for hair nourishment, healthy foods and male grooming products to deliver growth in present season. The company strives to proliferate into portfolio basket of premium brand extensions, through tactical modification to existing products or by strategic launch of new product-line, as reported by news agency PTI.
Chief Financial Officer, Marico, Vivek Karve, commenting on company expansion plans, said “Going forward, we expect to deliver double-digit sales growth, around 8-10 per cent volume growth for the next 4-5 years”. Also, he added that a review of company financials in past five years provide that, the company’s top line growth is 16 per cent and net profit increased 19 per cent. The vast improvement has been registered in company sales figures, wherein, in duration of last nine months ended December 2016, the company had posted consolidated net sales of Rs 4,613.77 crore. Karve shared company growth lineage and growth outlook, saying, “The company management will be expanding product portfolio to fill the gaps”. He is said to have cited the example of the recent acquisition of 45 per cent stake in Ahmadabad-based Zed Lifestyle to expand into the male grooming segment. Karve has been quoted in PTI report,” “Marico continues to look at categories that it wants to be present in,” Mr Karve highlighted while organic growth will continue to be the focus, Mr Karve, also said, “If Marico is not able to drive growth through organic means; the company can look at potential tie-ups or inorganic opportunities to fulfill its growth ambitions in India as well as overseas markets.”
Marico is a dominant global player, with its 22 per cent share of sales, coming from international sales. The company management is in process of bringing changes, to scale up its presence, in the East African and South East Asian markets. Marico has presence in 25 countries across merging markets of Asia and Africa.
Commenting on the growth drivers, Mr Karve shared that the company is expecting that segments such as hair nourishment, healthy foods and male grooming space will be the key. Besides company is planning to leverage its presence, with offer of premium products, either through brand extension from the existing portfolio, or by launching a new portfolio. Vivek Karve said, “The company expects to reduce its dependence on coconut oil over the medium term and drive growth in value added portfolio,” The company management hopes to register an incremental raise in rural sales to the level 37-38 per cent in India over the next 3-5 years, from present 34 percent. Mr Karve answered questions about investment in new plants, by saying, “In future as well, to cater to the growing demand for its products, Marico will either expand the existing units or may even build new green field units.”
Marico’s annual outlay on capital expenditure is Rs 100-125 crore and has recently commenced operations at its second production unit in Assam.