Marico has been making investments in e-commerce business with picking up stakes in Zed Lifestyle.
While e-commerce has disrupted retail scenario in India, a leading FMCG company Marico Ltd today said its online sales have helped increase the revenue of the company. The company, which is famous for its products Parachute and Saffola, also said that it pins hopes on e-commerce for ramping up its sales further. In fact, Marico plans to gradually create “dedicated premium product offerings” which will be suited to modern trade and e-commerce platforms. It has been making excessive investments on building its online portfolio. “The Company is focusing on Digital initiatives in a big way to improve consumer engagement, drive sales through e-commerce for internet-savvy consumers and build Data Analytics capabilities,” Marico said.
Marico has been making investments in e-commerce business with picking up stakes in Zed Lifestyle (which owns Beardo) two years ago. According to media reports, the company is expected to complete the acquisition by next financial year. Marico too agrees that the Zed Lifestyle invest is “likely to enhance the capability in e-commerce and salons over the medium-Term,” the company said. Currently, e-commerce contributes to about 4% of the total India business for the company and Marico expects the number to rise to 5% by the end of FY20.
Key takeaways from Marico Ltd’ Q1 financial results
- Marico has posted a 21.62% increase in consolidated net profit, which now stands at Rs 315 crore for the fiscal first quarter ended June. For the corresponding period last year (April-June 2018), the company’s net profits stood at Rs 259 crore.
- Despite the overall sluggish demand environment in the domestic market, Marico delivered strong earnings growth. Its consolidated net sales during the quarter were at Rs 2,166 crore, up 6.85% on-year.
- Marico’s total expenses have also undergone a rise by almost 3% at Rs 1,752 crore while the same were Rs 1,701 crore last year.
- Marico revenue from domestic operations also saw a surge by 7% on a yearly basis while the same from international business went up by 9.02%.