Himadri Buch Moneycontrol News
Homegrown FMCG major Marico is targeting an 8-10 percent volume growth for the current financial year, said Saugata Gupta, Managing Director and Chief Executive Officer.
"What we are are aspiring is to deliver 8-10 volume growth this year. There could be fluctuations in terms of quarterly growth, but we should be in a position to deliver 8-10 percent (volume growth)," said Gupta on the sidelines of CII FMCG Summit 2018.
He said while fast moving consumer goods sector will continue to focus on volume growth, margins are equally important in India.
The company that makes Parachute and Saffola, is also bullish on rural consumption this fiscal.
"There has been a significant reduction in input costs but what we have definitely seen is rural growth is outstripping urban growth and will continue to do so," Gupta said.
However, he believes there is opportunity in both premiumisation and rural market and both the markets remain equally attractive.
Rural sales contribute 32 percent of domestic revenues for Marico.
He further said that while inflationary input cost pressures had impacted the profitability in the last few quarters, the company believes that focus on franchise expansion with threshold margins will stand them in good stead to write a profitable growth story.
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