**Marico Ltd Focuses on Growth Amidst Competitive Landscape**
Marico Ltd is prioritizing growth acceleration after navigating last year’s fierce competition exacerbated by soaring commodity prices. To address these challenges, the fast-moving consumer goods (FMCG) company has strengthened its presence in local mom-and-pop stores and refined its product offerings to focus on fewer, high-demand items, according to Saugata Gupta, managing director and CEO, in a recent interview.
In the June quarter, Marico, known for its Parachute coconut oil, reported a consolidated revenue of ₹3,259 crore, marking a 23% increase year-on-year, driven by a 9% volume growth in its Indian operations. This growth occurred despite record-high copra prices, a crucial raw material for the company. Gupta highlighted that traditional retail channels, particularly small kirana shops, provide a competitive advantage for Marico and other established FMCG brands, suggesting that digital-first brands may struggle to penetrate this segment.
When asked about the factors behind the volume growth, Gupta noted that while inflation improvements are gradual, effective management execution is essential for growth regardless of market conditions. He emphasized the importance of innovation and diversification, particularly in adjacent categories, to achieve double-digit revenue growth in a highly penetrated market.
Regarding the rationalization of stock-keeping units (SKUs), Gupta explained that the strategy of “fewer, bigger, better” is crucial. He pointed out that while many ideas may seem appealing from an office perspective, consumers can only remember a limited number of products. The company is now focusing on channel-specific SKUs to enhance clarity and reduce complexity, which can incur hidden costs.
Despite the challenges posed by increasing competition from digital-first brands, Gupta believes that organized trade can serve as a prototype for scaling new launches. He reiterated the importance of maintaining a focused portfolio without overwhelming any particular channel with too many SKUs, while also leveraging digital platforms for better visibility.
In conclusion, Marico Ltd is strategically positioning itself to navigate the competitive FMCG landscape by focusing on core products, enhancing distribution channels, and maintaining a clear product strategy.
**FAQ**
**Q: How is Marico Ltd adapting to competition in the FMCG sector?**
A: Marico is enhancing its presence in traditional retail, streamlining its product offerings, and focusing on innovation to maintain a competitive edge.
