With Saffola brand, Marico eyes Rs 850-1,000 cr food business by FY24

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FMCG Marico will continue to expand its Saffola healthcare brand as it aspires to build an Rs 850-1,000 crore business from its food portfolio by FY24, a senior IT official has said. company.

Over the past two years, Marico has expanded the Saffola brand into immunity, foods and recently launched mayonnaise and peanut butter, said its managing director and CEO Saugata Gupta.

“We will continue to launch a major aggressive innovation program under the Saffola brand in line with our aspiration to create a food portfolio of Rs 850-1,000 crore by FY24,” Gupta said while answering questions from shareholders during the meeting. ‘AGM.

Marico will continue to launch and expand the addressable market in the segment through Saffola or any new brand.

Under the Saffola brand, Marico sells various products, including noodles, oats, honey, and immunity booster Chyawanprash, in addition to edible oil.

Marico’s food portfolio has already achieved the aspiration of reaching the Rs 450-500 crore topline in FY22, Gupta said.

Its first portfolio of digital brands recorded an exit rate of Rs 180-200 crore in FY22.

“Beardo grew to cross the Rs 100 crore exit rate in FY22. We aim to build a portfolio of Rs 450-500 crore by FY24 through a mix of organic and inorganic brands “said a transcript of the AGM shared by Marico with exchanges on Thursday.

Currently, 9% of Marico’s sales come from online sales via e-commerce and the segment’s contribution continues to grow, he added.

“Our R&D spending is in line with industry benchmarks and we continue to increase our R&D investments to drive innovation and research,” Gupta said.

While answering a question about ability usage, he stated that Marico’s overall ability usage is between 80-95%.

However, when asked about the valuation of Marico’s key brands – Saffola and Parachute, Gupta replied, “We don’t do valuation of our self-generated brands. It’s only when we make an acquisition that we do a Evaluation”.

On whether Marico has a plan to get into plant-based meat, Gupta said, “We have a plan to grow the addressable market for the Saffola brand as part of our food journeys and as you know , we have already launched Soya Chunks and so you are going to see innovations in the future in the next two years”.

The company maintains its aspiration to deliver 13-15% revenue growth over the medium term through 8-10% domestic volume growth in the domestic business and double-digit growth in constant currency in the international business.

“We expect to maintain an operating margin of 19% or better over the medium term,” Gupta said.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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