Marico Ltd, a leading FMCG company, is expanding its presence in the healthy food segment with its Saffola brand. The company’s Managing Director and CEO, Saugata Gupta, expects the food business to surpass the edible oil vertical in the future. Marico’s food business has already crossed the Rs 900 crore mark in FY25, with the company introducing new products such as Saffola oats, honey, and snacks to cater to the growing wellness market.
Gupta stated that the food business is more profitable than the edible oil business and involves significant Total Addressable Market (TAM) expansion. The company plans to improve penetration, distribution, and awareness of its Saffola oats and masala oats products. Additionally, Marico aims to have a significant presence in the honey and muesli segments and plans to grow its snack segment by expanding its Saffola Crunchiez product line.
Marico expects its food segment to deliver 25% growth, with Saffola foods potentially becoming bigger than Saffola edible oil in the next 3-4 years. The company’s consolidated revenue crossed the Rs 10,000 crore mark in FY25, with its standalone revenue at Rs 7,581 crore. The food business contributed 11% to Marico’s domestic business in FY25, registering a 33% growth.
Gupta ruled out the introduction of new brands in the food business, stating that the company has enough brands, including Saffola, True Elements, and Plix. Marico aims to scale up its revenue to Rs 20,000 crore by 2030, guided by innovation, brand building, and operational excellence. The company plans to achieve this target by delivering high single-digit growth in its core business, 20% plus growth in its diversified business, and double-digit growth in its international business.
Marico is investing in manufacturing capacity to meet growing demand, with a focus on capability building, distribution, and digital capability. The company is also investing in automation, artificial intelligence, and analytics to support its growth plans. Additionally, Marico is investing in advertising and promotion (A&P) with significant efficiency, with a focus on above-the-line spending and digital spend to build brand equity.