Marico expects food products to outweigh edible oils portfolio by 2027

Food products will contribute more than edible oils to Marico’s portfolio in the next three-to-four years, said the company’s management in its Q1FY24 earnings conference call.

Marico wants to reduce its dependency on edible oils as it is a highly volatile commodity, which can be unpredictable in pricing and supply. The company wants to focus on its personal care and food portfolio where there is less volatility in raw material prices, Marico’s management said in its earnings conference call.

The FMCG player plans to do a commodity de-risking in edible oils. De-risking is a strategy where companies reduce or minimise potential risks associated with fluctuations in prices and availability of commodities.

Marico sells edible oils under the brand name Saffola, which makes up 24 percent of its domestic revenues. The edible oils segment registered a 13 percent price growth in the April-to-June quarter, however, the volume growth was in lower double digits during the period, the company said in its investor presentation for Q1FY24.