FMCG major Marico is looking to scale up its presence in existing categories and also leveraging innovations as it aims to double its food business by FY27. The company expects to grow the food business at 20-25 per cent CAGR.
The company has also inked an MoU with the National Institute of Food Technology Entrepreneurship and Management (NIFTEM) at the World Food India 2024. This partnership will focus on enhancing skill development, technology sharing, and capability development at Marico’s R&D operations.
Speaking on the sidelines of the WFI Conclave, Vaibhav Bhanchawat, Chief Operating Officer - India & Foods Business, Marico Ltd, said, “We have had a lot of success within the food category in the last several years. Going forward, the vision is to double our foods business by FY27, which includes the Plix and True Elements portfolio, and it fits very well with our overall diversification agenda.”
“If you look at the penetration levels of the categories where we now have a presence, there is a lot of headroom for growth. Our recent launches of the Masala Oats gourmet range, Masala Millets, Crunchiez Millet Cones, and Muesli are just at the starting point. As we scale this up, there will be a big unlock. We also have a strong innovation pipeline focused on leveraging key consumption trends of convenience and health,” he added.
Overall, Marico is looking at increasing its direct reach to over 1.5 million stores over a period of three years as part of its Project SETU initiative. Bhanchawat said the food portfolio will be one of the key beneficiaries of this strategy. “We will leverage the distribution strength of our core brands to grow the reach of our new portfolios. So, for instance, Masala oats has a distribution reach of over 2.5 lakh outlets, and it is only going to go up as part of this strategy. But every category will operate with its nuances, and so not everything will be massified,” he added.
Responding to a query on the expansion strategy of the Saffola foods portfolio, Bhanchawat explained, “We are focusing on TAM (Total Addressable Market) expansion and reaching out to different consumer cohorts. We are also looking to tap into different consumption occasions throughout the day with our portfolio.”