Marico’s Saugata Gupta doubles down on brand building, digital play in push to Rs20,000 crore

Marico’s Saugata Gupta says the company is leaning into brand building, digital-first portfolios, and targeted marketing investments to fuel its next phase of growth. “I am pleased to share my reflections and present your Company’s seventh Integrated Annual Report for the year ended March 31st 2025,” Gupta opened, highlighting Marico’s crossing of the ₹10,000-crore revenue milestone, with the ambition to double it in five years despite what he called “mixed consumption trends and challenging macro-economic conditions.”

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Central to this ambition is brand building and purposeful diversification, Gupta said, noting the company’s strategy of “nurturing our core brands while purposefully advancing the diversification agenda in India and overseas businesses.”

In India, Marico is seeing “strong double-digit revenue growth,” with its core brands like Parachute and Saffola maintaining leadership despite price hikes driven by inflationary pressures. Gupta highlighted that investments in “focused interventions,” “consistent brand-building investments,” and “sharper brand activations” would drive recovery, especially in categories like value-added hair oils.

Digital-first brands and premium personal care are pivotal to Marico’s strategy. Gupta noted that “the digital-first portfolio exited FY25 with an annualised revenue run-rate of ₹750 Crore — well ahead of our initial aspirations,” adding that brands like Beardo and Just Herbs are scaling rapidly with clear profitability targets. “We firmly believe that we are on track to be one of the most successful digital FMCG companies in the country,” he stated.

Highlighting the importance of distribution and evolving retail channels, Gupta said: “Alternate channels such as Modern Trade and E-commerce continued to gain momentum,” and Marico is actively building “assortment across categories to effectively capitalize on the potential” of quick commerce, which now accounts for 3% of the India business.

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Investments in advertising and promotion (A&P) have been aggressive, even as Marico navigated higher input costs. Gupta said, “We have delivered a stable bottomline performance in the year under review despite significantly higher input cost pressures vis-à-vis the rest of the sector and aggressive investments in A&P throughout the year.”

The international business also delivered double-digit constant currency growth, with Gupta highlighting continued investment in premium personal care segments overseas. “We will continue to invest aggressively towards diversifying the portfolio, expanding the total addressable market and driving market share gains in each of the markets,” he said.

Gupta’s letter is also a reminder of Marico’s broader ESG ambitions. He noted that “sustainability is not an adjunct, it is intrinsic to how we operate and grow,” with clear targets on renewable energy, recyclable packaging, and community initiatives.

Gupta closed on a note of resilience, agility, and purpose. “As we look ahead, we remain committed to being progressive in vision, agile in execution, and resilient in spirit,” he said. “We believe this approach will enable us to scale with purpose, lead with impact, and deliver long-term value in a rapidly changing world.”

With its eyes on the next ₹10,000 crore, Marico is betting that aggressive brand building, investment in advertising and marketing, and digital expansion will enable it to outpace competitors in the FMCG sector while diversifying into new categories that align with evolving consumer aspirations.

Key Highlights

Aggressive A&P investments despite cost pressures:

“We have delivered a stable bottomline performance in the year under review despite significantly higher input cost pressures vis-à-vis the rest of the sector and aggressive investments in A&P throughout the year.”

Consistent brand-building investments and sharper activations:

In Value-Added Hair Oils, Gupta noted: “We are confident of delivering a marked improvement in growth next year backed by focused interventions in the bottom of the pyramid segment, consistent brand-building investments and sharper brand activations.”

Strategic priority on maintaining pricing power of trusted brands:

Despite price hikes due to inflation, the company leaned on the strength of its core brands to maintain pricing power, enabling brand-led resilience.

Building and strengthening consumer-centric portfolios:

Gupta emphasised: “Our overarching objective is to build and strengthen consumer-centric portfolios to cater [to] the evolving aspirations of a diverse and dynamic demographic.”

Digital-first brand investments with a profitability lens:

Marico’s digital-first brands (Beardo, Just Herbs, Plix, True Elements) were highlighted as an investment focus, with Gupta noting: “Our digital-first business model is unique since we have engineered a profitable and sustainable growth model, which does not rely on cash burn.”

Premiumisation and brand-led margin improvement:

The focus on premium personal care and food brands is positioned as a margin-accretive strategy, indicating ongoing investments in these categories.

Commitment to brand expansion across new channels:

The company is building assortments for quick commerce and modern trade, implying continued advertising and marketing spends to support these channels.