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Leading with purpose creates wins for consumers, community and country: Hina Nagarajan of Diageo India
Marico’s ad spends in India surge 35% in Q4, fueling growth amid inflation headwinds
For the full fiscal year FY25, consolidated A&P expenses rose 18% year-on-year to ₹1,128 crore, with A&P intensity at 10.4% of sales, up from 9.9% in FY24.
his strategic increase in media and marketing investments was aimed at “continually strengthening our franchises and accelerating diversification,” the company noted in its earnings update.
Marico ramped up its advertising and promotional spends by 35% year-on-year in Q4 FY25, marking a significant investment in brand building despite input cost pressures. The ad and promotion (A&P) outlay stood at ₹305 crore, accounting for 11.2% of sales, the highest in over a year.
For the full fiscal year FY25, consolidated A&P expenses rose 18% year-on-year to ₹1,128 crore, with A&P intensity at 10.4% of sales, up from 9.9% in FY24. This strategic increase in media and marketing investments was aimed at “continually strengthening our franchises and accelerating diversification,” the company noted in its earnings update.
The move comes at a time when Marico's India business reported a 23% revenue growth in Q4 which is the highest in 14 quarters with 7% volume growth, aided by pricing actions in response to elevated input costs. About 95% of the portfolio gained or held market share, while 80% sustained or improved penetration, according to the company.
While core brands like Parachute and Saffola saw transient sluggishness due to inflation and pricing adjustments, the Foods and Premium Personal Care segments—both heavy advertising categories—delivered strong performance. Marico’s Foods portfolio grew 44% in value terms, crossing ₹900 crore in revenue for FY25, while its digital-first premium personal care brands including Beardo and Just Herbs exited the year with an ARR of ₹750 crore.
“ATL investments and focused brand activations” were called out as key enablers for the sequential recovery in Value Added Hair Oils, while Saffola Edible Oils continued to reinforce its health-first positioning with value growth of 26% despite volume softness.
The FMCG major’s strategic advertising push coincides with its broader ambitions to scale up direct rural reach under Project SETU, premiumise the portfolio, and gain ground in digital-first channels. India A&P spend, while not broken out separately, is understood to comprise a significant portion of the consolidated figure, given the 75%+ share of domestic business in Marico’s overall topline.
Even as the gross margin contracted by ~300 basis points in Q4, Marico doubled down on its brand investments, citing the need to “prioritize the expansion of our consumer franchises” amid volatile input costs. The company expects this aggressive brand-building to pay off with double-digit operating profit growth in FY26 and increased profitability from newer portfolios.
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