Parachute likely to turn around with 5-7% volume growth, says Marico CEO  

Saugata Gupta -Managing Director & CEO Marico Limited

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26 Aug, 2025 12:21

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Marico’s popular Parachute brand will likely see a rise in sales volumes going ahead, with the company expecting to wrest back market share from unorganised players as input costs rise, said  Saugata Gupta, Managing Director and Chief Executive Officer of Marico in an investor conference call.  In Parachute Rigids, Marico expects to grow volumes in the range of 5-7 percent over the medium term, given the market construct and strengthening brand equity, said the company in its investor presentation.

Marico’s Parachute brand has had two consecutive weak quarters. Volume growth declined by 2 percent in Q1FY24 and increased by just 1 percent in Q2FY24. The company expects Parachute volumes to start getting back as copra prices are set to inch up going ahead.

Also read Marico: Outlook improving, recovery likely to be gradual

Rising copra prices will lead to a change in consumer sentiment, wherein consumers shift to branded oil players like Marico, and let go of unorganised or loose oil players, the company management said. “As copra enters into an off-season ahead of the festive season, prices are expected to exhibit an upward bias in the near term,” it added.

In a period of rising input costs, unorganised players leave the market as increasing costs leave no scope for profitability. On the other hand, organised players tend to gain market share.

In the July-to-September quarter, Parachute volumes were low due to a deceleration in conversion from unbranded to branded players, said the management.

Saugata said that the company’s edible oil Saffola is already being advertised and sold as a health product. Saffola now needs to deliver taste, as no consumers are willing to compromise on taste, even if the product is healthy.

He says that his biggest learning is to Indianise western food concepts like oats to make it a hit in India. In the July-to-September quarter, Saffola Oats grew in double digits and maintained its category leadership in the market.

Among the sales channels for Marico, Modern Trade and E-commerce registered high double-digit growth of 20 percent in Q2FY24, while General Trade declined in low single digits on a YoY basis.

To this, the management said that it needs to focus more on diversification in trade channels. “We need to do a better job in chemist, cosmetic, and food outlets to drive diversification,” said Saugata.

Marico is underindexed in chemist and cosmetic channels and in order to generate demand for hairfall products, serums, the company needs specialists to drive demand, which in this case are chemists and cosmetic shops.

Speaking about the acquired businesses, the management said that Beardo will get profitable by FY24, while Just Herbs will get profitable by FY25. Beardo, a male grooming brand was acquired by Marico in 2017. Just Herbs has an Ayurvedic skin care and makeup range.

Marico’s revenue from operations were flat, falling 1 percent YoY to Rs 2476 crore in the July-to-September quarter. The oil company’s profit increased 17 percent YoY to Rs 360 crore in the same period.

The stock was trading flat at R 536.20 at 12.05 pm on the NSE.

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