In Short:
Marico plans to double its food business by FY27, aiming for 20-25% annual growth. They’ve partnered with NIFTEM to enhance skills and technology in R&D. The company focuses on expanding its food offerings like Masala Oats and Crunchiez, while increasing product reach to over 1.5 million stores. Marico’s strategy emphasizes tapping various consumer needs and preferences.
Marico Aims to Double Food Business by FY27
Marico, a prominent player in the FMCG sector, is gearing up to expand its footprint within existing categories while embracing innovative strategies to double its food business by the financial year 2027. The company is projecting an impressive growth rate of 20-25% CAGR for its food division.
New Partnership for Skill Development
- Also read: Marico eyes double-digit revenue growth in FY25
Vision for Growth in the Food Category
On the sidelines of the WFI Conclave, Vaibhav Bhanchawat, Chief Operating Officer – India & Foods Business at Marico Ltd, shared insights on their successful journey in the food category over the past few years. “We are determined to double our foods business by FY27, which includes our Plix and True Elements portfolios. This aligns perfectly with our diversification vision,” he remarked.
Discussing future prospects, Bhanchawat noted, “The penetration levels in our current categories indicate substantial growth potential. Our recent product launches, such as the Masala Oats gourmet range, Masala Millets, Crunchiez Millet Cones, and Muesli, are just the beginning. As we ramp up, we foresee a significant unlock in opportunities. We are also focused on a robust innovation pipeline that taps into key consumption trends centered around convenience and health.”
- Also read: Marico uses AI to introduce product in overseas market
Expanding Distribution Reach
As part of its ambitious Project SETU initiative, Marico plans to boost its direct reach to over 1.5 million stores within the next three years. Bhanchawat emphasized that the food portfolio is set to benefit significantly from this strategy. “We will utilize the distribution strength of our core brands to enhance the visibility of our new products. For instance, our Masala Oats currently has a distribution reach of over 250,000 outlets, and we’re just going to keep growing from there. However, each category will have its unique dynamics, so we won’t apply a one-size-fits-all approach,” he explained.
Expanding the Saffola Portfolio
In response to questions about the expansion strategy for the Saffola foods portfolio, Bhanchawat elaborated, “We’re concentrating on expanding the Total Addressable Market (TAM) and connecting with various consumer segments. Our goal is to address different consumption occasions throughout the day with our diverse portfolio.”
