Marico is on a mission to expand its health care brand Saffola in order to build a food business worth Rs. 850-1,000 crore by FY24.
In the last two years, Marico has expanded the Saffola brand into immunity, foods, and recently launched mayonnaise and peanut butter, according to Saugata Gupta, Managing Director and CEO of Saffola. “We will continue to launch a significant and aggressive innovation programme under the brand Saffola in line with our aspiration to create an Rs. 850-1,000 crore food portfolio by FY24,” Gupta said.
Marico will endure to unveil and expand the addressable market in the segment through Saffola or any new brand. Marico sells a variety of products under the Saffola brand, including noodles, oats, honey, and the immunity booster Chyawanprash, in addition to the edible oil.
The food portfolio of Marico has already attained the goal of reaching Rs. 450-500 crore topline in FY22, Gupta said. Its digital-first brand portfolio clocked an exit run rate of Rs. 180-200 crore in FY22. “
“We aspire to build a Rs. 450-500 crore portfolio by FY24 through a mix of organic and inorganic brands,” said a transcript of the AGM shared by Marico with exchanges on Thursday. Presently, 9 percent of Marico’s sales are coming from online sales through e-Commerce and the contribution from the segment is growing further, he added.
“Our investment spend in R&D is in line with benchmarks in the industry and we will continue to increase our investment in R&D to drive innovation and research,” Gupta said.
The company’s medium-term revenue growth target is 13-15 percent, based on 8-10 percent domestic volume growth in the domestic business and double-digit constant currency growth in the international business. “We expect to maintain an operating margin of 19 per cent+ over the medium term,” said Gupta.