Marico’s strong FY26 performance—marked by its highest volume growth in seven years in its India business—was driven by what managing director and CEO Saugata Gupta calls “multiple vectors of growth”. In an interview with Viveat Susan Pinto, Gupta emphasised a continued focus on volume-led growth, premiumisation and profitability, even as inflation, geopolitical tensions and climate risks keep the operating environment volatile. Excerpts:
Q) What were the building blocks for the strong volume growth in Q4 (9%) and FY26 (8%) in your India business?
More than anything else, it is multiple vectors of growth coming together. The resilience of our core brand Parachute—even with a 60% price increase—underscores the strength of its brand equity and deep consumer affinity.
At the same time, we have seen significant growth momentum in value-added hair oils (VAHO), where we have successfully pivoted towards mid and premium segments. Diversification into foods and digital-first brands has also contributed, and Project Setu has helped in expanded distribution.
Overall, it is about focused execution. As we often say, we will do fewer things, but we will do them bigger, bolder, and faster.
Q: Your international business has been strong. Can you sustain this momentum in FY27?
Over the last five to six years, we have built strong resilience to navigate adversity. We delivered nearly 20% constant currency growth in FY26 in our international business, and we are expecting mid-teen growth in FY27.
While we remain mindful of geopolitical risks, we have taken proactive steps around supply chain and inflation management. Barring any unforeseen black swan events, we are confident of delivering on the targets set for the ongoing fiscal.
Q: How do you see demand trends shaping up in FY27? What are the key risks you are monitoring?
We are closely tracking geopolitical developments, inflation, especially crude and climate factors. While volatility is likely to persist, we are focused on managing it proactively and effectively.
Rural demand has shown a strong recovery, urban demand benefited in the second half of FY26 from lower inflation and GST rationalisation. Some of these tailwinds may moderate in FY27 due to global uncertainties, and we remain cautiously optimistic.
Importantly, we are in a relatively strong position on our input costs, with copra, a key input, seeing deflation. This provides us with the flexibility to manage inflation without the need for significant price increases.
Q: Will you maintain ad spends given the pressure on margins this year?
We remain committed to sustaining our ad spends. We will drive efficiency, scale benefits, and reduce wastage, and we will continue to invest behind capability, talent and culture. Our focus remains on volume-led growth, supported by premiumisation to drive realisations.
Q: Your peers are beginning to call out risks attached to packaging and input costs. Your thoughts.
We have proactively factored these considerations into our planning, focusing on both inflation management and supply assurance. In such an environment, scale becomes a clear advantage, as larger players are better positioned to manage working capital and supply chain needs.
Q: Does that mean the formalisation trend will accelerate?
Yes, we believe so. GST rationalisation has provided a structural advantage to larger players, and there is also a conscious push towards driving volume growth. We have seen similar trends in the post-Covid-19 phase as well — where organised players have consistently performed well during challenging periods. We expect the formalisation trend to continue.
Q: What underpins your confidence of delivering high single-digit volume growth in FY27? And what is your margin outlook for the year?
Our confidence stems from multiple vectors of growth and continued diversification. Also, our core franchise of Parachute is expected to return to mid-single digit volume growth following pricing corrections, which will be a key contributor. On margins, given the current basket of commodities, we are well-positioned to deliver high-teen EBITDA growth.
Q: How are foods and digital-first brands shaping up?
The India revenue share of the foods and premium personal care portfolios (including digital-first brands) stood at around 23% in FY26. We expect it to expand to about 27% in FY27 (earlier 25%) and approximately 33% by FY30. In foods, the focus is clearly on health and wellness. In digital, the emphasis is on sustainable and profitable growth.
We would prefer growing with strong profitability rather than chasing higher growth with cash burn. Our model is anchored in high growth with disciplined profitability. In digital, we have built a strong house of brands, with a focus on driving synergies, expanding into general trade, and strengthening our omni-channel presence.
Q: What role does quick commerce play in your strategy?
Quick commerce is emerging as an important driver of premiumisation and a dynamic platform for innovation and prototyping. We are seeing strong traction with several launches, especially in foods and premium personal care. At the same time, we are mindful that growth has to be profitable.