Marico
Marico, under CEO Saugata Gupta, is expected to maintain the trend of ‘shrinkflation’ for another quarter or two, continuing its product line adjustments.
Marico’s CEO, Saugata Gupta, announced that the company will continue to practice “shrinkflation” for a few more quarters, where they reduce the size of their products while keeping the prices the same. This is due to higher-than-expected input inflation, which has caused temporary pressure on profitability. However, the company expects the inflation cycle to end in the next fiscal year, with prices expected to cool down once the flush season resumes in Q1 FY26.
Gupta anticipates that prices will decrease once the rural demand improves, which has been driven by government schemes, increased Minimum Support Prices (MSPs), and a favorable crop season. On the other hand, urban consumption sentiment remains healthy among affluent and upper-middle-class segments, while the middle and bottom of the pyramid segments are being affected by inflation and slow wage growth.
Marico reported a consolidated profit of Rs 406 crore in Q3 FY25, with net sales increasing from Rs 2,422 crore in Q3 FY25 to Rs 2,794 crore in Q3 FY24. The company’s flagship brand Coconut Oil witnessed a 33% domestic revenue growth, while Saffola Edible Oils recorded an 18% revenue growth with a 24% value growth. The hair oil segment had a 19% domestic revenue growth with a 2% value growth, and the food segment registered a 31% value growth with an annualized run rate of nearly Rs 1,000 crore.
Confronted the prospect of direct-to-consumer brands as an imminent threat from as early as 2020.
Marico, a leading FMCG company, has highlighted the potential threats and opportunities it faced in 2020, which ultimately led to a strong performance in the third quarter. The company anticipated the growth of D2C (direct-to-consumer) brands at the expense of established players and responded by investing in brand building and diversification. Marico has made significant investments in acquiring stakes in D2C brands, including a 54% stake in healthy snacks brand True Elements and a 58% stake in plant-based nutrition brand Plix. The company’s MD, Saugata Gupta, has described the M&A deals as “fruitful”, citing the profitable growth of Plix and the low burn rate of True Elements.
Gupta is particularly bullish on the potential of Plix, a D2C brand that offers plant-based nutrition products. He believes that the brand will hit Rs 500 crore in sales soon, driven by its ability to tap into Indian consumers’ desires for healthy and youthful living. Plix’s innovative products, digital marketing capabilities, and global expansion efforts are expected to propel its growth. The brand has already been sold in the Middle East and US, in addition to India.
Marico’s strategy to invest in D2C brands has been driven by the growing importance of online shopping and the need for companies to adapt to changing consumer behaviors. By acquiring stakes in these brands, Marico is well-positioned to benefit from the shift towards digital consumption and expand its presence in new markets. Overall, Marico’s foray into the D2C space has paid off, and the company is expected to continue its strong performance in the future.
Zee TV and Marico partner for a flagship influencer-driven campaign for Parachute
Here is a 400-word summary of the content:
Zee TV has collaborated with Marico for an influencer-led campaign to promote Parachute Advansed Gold’s winter initiative, which highlights the brand’s core message, “No Baal Banka”. The campaign features popular TV show protagonists, such as Purvi from Kumkum Bhagya, Reet from Jaane Anjaane Hum Mile, Vasudha from Vasudha, and Riddhi Chotwani from Jamai No 1, in snippets that blend storytelling with brand communication.
The campaign aims to emphasize Parachute Advansed Gold’s commitment to hair care and protection even in challenging winter conditions. The clips have been designed to showcase the brand’s promise of nourishing hair in just 30 minutes, which is especially crucial during the winter season.
Ashish Sehgal, Chief Growth Officer – Digital and Broadcast Revenue, ZEE Entertainment Enterprises, believes that the campaign is a great example of how Zee TV can create characters that resonate with its audience while promoting a brand. He emphasizes that the goal is to foster deeper connections with viewers while adding value for both the client and audience.
Somasree Bose Awasthi, Chief Marketing Officer at Marico, highlights the brand’s commitment to helping nourish hair from within and the importance of promoting this message through relatable, everyday stories. She aims to strengthen the brand’s bond with a wider audience by encouraging them to nourish their hair quickly, a promise that fits seamlessly into busy modern lives.
Jolene Fernandes Solanki, Chief Operating Officer – Madison Media Ultra, views this campaign as a powerful example of the importance of storytelling and consistency in building strategic brand interventions. She believes that the partnership demonstrates Madison Media Ultra’s commitment to delivering innovative, impactful campaigns that drive meaningful connections for brands like Marico.
Overall, the campaign showcases the power of effective storytelling and brand integration, highlighting the potential for innovative collaborations between brands, content creators, and media platforms.
Zee TV Unveils Exclusive Partnership with Marico, Launching a Groundbreaking Promotional Drive for Parachute Advansed Gold
Zee TV and Marico have collaborated on a special influencer-led campaign to promote Parachute Advansed Gold’s winter initiative, focusing on the brand’s core message, “No Baal Banka”, emphasizing the importance of hair care and protection during challenging winter conditions. The campaign features popular Zee TV characters, such as Purvi from Kumkum Bhagya, Reet from Jaane Anjaane Hum Mile, Vasudha from Vasudha, and Riddhi Chotwani from Jamai No 1, in mini-vignettes that illustrate Parachute Advansed Gold’s benefits. These vignettes seamlessly blend storytelling with brand messaging, creating a memorable experience for viewers.
The campaign is a result of Zee TV’s commitment to creating characters that resonate with its audiences, reflecting their aspirations, emotions, and stories. By incorporating Parachute Advansed Gold’s message into its character narratives, Zee TV aims to foster deeper connections with its audience, adding value for both the client and viewers. Marico’s Chief Marketing Officer, Somasree Bose Awasthi, noted that the collaboration highlights the brand’s effectiveness in nourishing hair in just 30 minutes, especially during the winter season.
The campaign demonstrates Zee TV’s ability to bring together content and creativity, creating a memorable experience for audiences. This partnership reinforces Zee TV’s position as a preferred partner for brands seeking to connect with their consumers.
The “No Baal Banka” campaign, launched on Zee TV, ZEE5, and social media platforms, will engage viewers and promote the brand’s message, emphasizing the importance of nourishing hair in 30 minutes. This campaign shows how Zee TV’s commitment to innovation in advertising and storytelling can lead to impactful brand connections with its audience.
Marico’s Parachute Advansed Gold teams up with Zee TV for a groundbreaking marketing initiative.
Zee TV, a leading Indian entertainment channel, has collaborated with Marico, a top FMCG company, to launch a special influencer-led campaign for Parachute Advansed Gold’s winter initiative. The campaign promotes the brand’s “No Baal Banka” message, highlighting its commitment to hair care and protection even in challenging winter conditions. To achieve this, Zee TV has creatively woven Parachute Advansed Gold’s narrative into its primetime programming, featuring popular show protagonists in unique vignettes. These custom-crafted scenes bring the brand’s message to life, showcasing characters like Purvi from Kumkum Bhagya and Vasudha from Vasudha engaging in relatable moments.
Ashish Sehgal, Chief Growth Officer at ZEE Entertainment Enterprises, emphasizes the power of storytelling in brand communication, stating that by incorporating Parachute Advansed Gold’s message into Zee TV’s character narratives, they are not only promoting a brand but creating a deeper connection with audiences. Somasree Bose Awasthi, Chief Marketing Officer at Marico Limited, highlights the brand’s commitment to nourishing hair in 30 minutes and how the campaign aims to connect with a wider audience through everyday narratives.
Jolene Fernandes Solanki, Chief Operating Officer at Madison Media Ultra, commends the partnership for its ability to deliver an engaging narrative that resonates with audiences, demonstrating the power of storytelling and consistency in building strategic brand interventions. This collaboration exemplifies the potential of combining content and creativity to create an impactful campaign. As Zee TV continues to push the boundaries of innovation in advertising, partnerships like this reaffirm its position as a go-to partner for brands seeking meaningful connections with consumers.
FMCG industry leaders anticipate a 2-4% price increase to safeguard their delicate profit margins
Here is a summary of the content in 400 words:
Godrej Consumer Products and Emami are two major players in the consumer goods industry in India who are struggling with the high prices of palm oil. According to their CEOs, Sudhir Sitapati and, respectively, the high prices of palm oil derivatives, such as PFAD, have necessitated sharp price increases, grammage cuts, and trade scheme reductions, leading to trade destocking. Sitapati also stated that there is a requirement for one or two more rounds of pricing in soaps to get back to the company’s normative margins.
Godrej Consumer Products anticipates an operating margin of 22-26% for fiscal 2025, provided raw material costs remain stable. Emami, on the other hand, expects further 1-1.5% price increases in the coming quarters, on top of the 2% hike it took in the December quarter.
Britannia Industries has already announced a price hike of 4-5% in the current quarter and plans to take further pricing actions over the next nine months to maintain its margins. Marico Ltd has taken a 10% price hike in coconut oil and 20% in edible oil so far this fiscal, but has stated that further price hikes are necessary to cushion its profit margins.
All of these companies, including Godrej Consumer Products, Emami, Britannia Industries, and Marico, are struggling with high raw material costs, particularly copra and vegetable oil prices. They are expecting to take more price hikes in the coming quarters to maintain their profit margins. The situation is expected to continue for the foreseeable future, as the prices of these raw materials are expected to remain high.