Fast-Moving Consumer Goods (FMCG) major Marico Ltd is eyeing acquisitions in South Asia as part of its strategy to ramp up growth in the region.
The international business comprises 26 per cent and is delivering a healthy growth rate in the last three to four years.
“We are confident that we will continue the double-digit constant currency growth in international markets. Outside that we are ramping up in the Middle East, North and South Africa markets. We could be open for new acquisitions strategically from an M&A perspective in some of the South Asian markets but we believe that the existing business has the potential to grow healthily,” Pawan Agrawal, CFO of Marico Limited told businessline
In 2022, the Mumbai headquartered company’s subsidiary Marico South-East Asia Corporation acquired a 100 per cent stake in Beauty X which owns female personal care brands including Purité de Prôvence and Ôliv for ₹172 crore in Vietnam.
businessline had earlier reported that the company is planning to expand its international business and grow its product portfolio for the Middle East and North Africa regions (MENA).
Marico Ltd posted a 5.29 per cent increase in its consolidated net profit for the quarter ended March. The company clocked ₹318 crore profit during the quarter against ₹302 crore during the same quarter last year. A 16.9 per cent decrease in net profit with ₹383 crore reported in the December quarter. Revenue from operations grew by 1.69 per cent to ₹2,278 crore during the quarter as compared to ₹2,240 crore posted in the same quarter last year.
The company’s international business registered 10 per cent constant currency growth with 8 per cent constant currency growth in Bangladesh while MENA continued strong growth momentum and delivered 19 per cent CCG.
“The ramp up in the MENA and South Africa businesses has visibly strengthened the growth construct of the International business. We will aim to deliver healthy revenue-led earnings growth in the near and medium term, aided by the positively evolving operating environment,” said Saugata Gupta, MD & CEO, of Marico Ltd.