Consumer goods maker Marico sees urban demand accelerating in the second half of FY26, supported by cooling inflation, GST rate cuts, a low base, and an overall improvement in policy environment. The company, best-known for its Parachute and Saffola brands, also expects volume growth to get stronger by FY27, as both rural and urban consumption will likely improve further on the back of favourable macro-economic factors. In an interview with Viveat Susan Pinto, Saugata Gupta, MD & CEO, Marico, outlines the company’s priorities in foods, digital-first brands and distribution. Excerpts:
Has the FMCG sector’s long-awaited rebound finally arrived after the challenges it faced over the last few years?
We are far more optimistic about the sector now than we were earlier. Rural growth has been looking up for multiple quarters now. Urban growth was slower, largely at the mass end of the market, but we are witnessing steady improvement. With the GST cuts, products have become affordable and accessible to consumers. And here is where I believe that the GST reduction has been transformational for FMCG. It will ensure that the shift from unbranded consumption to branded consumption, especially, in food, will become far more attractive. From a growth point of view, this shift becomes critical for companies. There is also a responsibility on branded players. Growth requires sustained innovation, investment in brand-building, and strengthening distribution. In emerging markets like India, real value comes from driving penetration, innovating, premiumising, and protecting market share. If you deliver value to consumers, profitability will follow.
Is Marico on track to achieve the Rs 20,000-crore revenue target it has set for 2030?
Yes. We are off to a strong start and expect to deliver around 25% revenue growth this year (FY26), which lowers the required CAGR for the remaining years. The revenue growth will be driven by core volume recovery in mid-single digits, continued diversification, and double-digit growth for our international business. If these factors hold, we are confident of doubling our turnover to Rs 20,000 crore (from Rs 10,831 crore in FY25) in five years.
What is Marico’s roadmap for its digital-first brands amid improving urban sentiment?
Our digital-first brands continue to perform well with strong consumption at the top end of the urban market. We are focused on sustainable, profitable growth for these brands. Beardo (male-grooming brand), is delivering double-digit Ebitda, and Plix, which is into nutraceuticals, has broken even. It is moving toward mid-to-high, single-digit Ebitda. Just Herbs (ayurvedic beauty products) and True Elements (healthy foods) will grow at a moderate 20–25% revenue growth. We aim to break even within 18 months as far as these latter two brands go. With the digital business now over Rs 1,000 crore in annualised revenue run-rate (ARR), we aim to reach double-digit Ebitda by 2027. We also remain open to inorganic opportunities in areas where we have strong adjacencies.
How are you shaping your packaged foods strategy given the GST-led shift from unbranded to branded consumption?
Our approach is anchored on three brands in foods. This includes Saffola, which targets the ‘better-for-you’ categories such as breakfast, snacking, and protein. True Elements is more premium, targeting healthy foods. And Plix operates in the nutraceuticals space. In foods, scale and operational efficiency drive profitability. Over the last two to three years, we’ve improved gross margins by about 1,000 basis points in foods. Saffola will focus on fewer, bigger, better and more relevant innovations, while True Elements and Plix will continue to experiment with niche propositions. A key priority now is expanding general trade distribution, where our market shares in categories like honey and muesli trail our modern-trade performance.
You took steep price hikes in Parachute in Q2 due to copra inflation. Does this risk worry you that it could hurt consumption?
Very few brands have taken price hikes of 60% and still maintained flat transaction growth. This reflects the strength of Parachute’s brand equity and its inherent resilience to price shocks. Despite unprecedented input-cost inflation, we have never posted a single quarter of Ebitda decline. With copra prices now cooling, we expect double-digit Ebitda growth in the second half of the year (FY26) and at least a 200-basis point margin improvement next year (FY27) for Parachute.
Weather volatility and climate-related disruptions are growing. How are companies preparing for this uncertainty?
Climate volatility impacts agri-commodity pricing, supply chains, and even consumption patterns. We need far more agile and stress-tested systems. The disruptions of recent years—Covid-19, geopolitical tensions, inflation—have shown that resilience must be built into organisational design and risk management.
How is Project Setu progressing, particularly with its urban expansion?
Phase one focused on increasing direct distribution in small towns and rural areas. This has strengthened our ability to sell our full range (of products). It has also driven sustained double-digit growth in value-added hair oils, which is the more profitable part of our portfolio. Urban expansion—especially in chemists, cosmetic and food outlets—is the next frontier of Project Setu. It will be a major focus for us over the next two years. Overall, Project Setu is a three-to-four-year journey, and early results have been encouraging.