FMCG major Marico is focusing on premiumising its portfolio and broadening its revenue base to reduce dependence on core businesses, managing director and chief executive officer, Saugata Gupta told Moneycontrol in an interview.
"We are trying to premiumise the business and de-risk the business concentration. This is the same direction we are pursuing both in India and internationally, across countries," Gupta said.
The FMCG major said newer segments such as foods, nutraceuticals and premium personal care now account for 22% of its revenue, up from 6% in 2020, supporting stronger volume growth.
Marico reported strong sales growth of 30.7 per cent YoY in Q2, led by 35 per cent growth in the domestic business and volume growth of 7 per cent despite the transitional GST-led disruption. However. volumes of its flagship brand, Parachute, remain muted amid hyperinflation in Copra prices and 60% pricing growth year-on-year basis. Although seen receding, copra prices inflation exceeded 100 per cent YOY this year amid production issues and high demand.
"Last quarter, we implemented a 60% price increase in Parachute which led to a slight decline in volumes, but overall, we still delivered 7% volume growth...The reason we’ve consistently delivered 7–9% volume growth over the last three to four quarter, compared to the industry average of 2-3%, is because of this diversification," he added.
Going forward, the company plans to place high bets on diversification along with continued globalisation.
"A third critical priority is digital transformation. For us, it is imperative to ensure that an incumbent can be equally successful with digital brands. This is what we call the Marico Engine 2 – a full-fledged consumer digital company. The business model is completely different and running both models in parallel positions us strongly for the future," Gupta said.
Currently, Marico owns digital brands including Beardo (men's grooming), True Elements (healthy foods), Just Herbs (Ayurvedic beauty), and Plix (D2C wellness). These brands have achieved Rs 1,000 crore in ARR (annual recurring revenue) as of November 2025.
"Beardo and Plix are already profitable, and we are driving the other two brands toward breakeven," Gupta said.
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