Marico , a leading Indian consumer goods company, has announced an ambitious growth strategy that aims to significantly expand its business over the next several years. The company has set forth a comprehensive plan that includes specific revenue targets and margin improvements.

Key Growth Targets

Revenue Ambitions

Marico has set its sights on achieving a revenue of INR 20,000 crores by the year 2030. This target underscores the company's confidence in its growth potential and its ability to expand its market presence over the long term.

Near-Term Objectives

For the current fiscal year, Marico aims for a substantial 25% growth in consolidated revenue. This aggressive target suggests that the company expects significant expansion across its various product lines and markets.

Profitability Focus

Marico is not just focusing on top-line growth but also on improving its profitability. The company plans to enhance its operating margin by at least 200 basis points in the next financial year. This improvement in operational efficiency could potentially lead to better returns for shareholders.

Digital and International Expansion

The company has outlined specific goals for its digital and international segments:

1. Digital Brands: Marico aims to achieve double-digit EBITDA margins for its digital brands business by FY27. This target highlights the company's commitment to its e-commerce and digital-first brands, recognizing the growing importance of online channels.

2. Overseas Operations: The plan includes maintaining robust double-digit constant currency growth in international markets. This suggests that Marico sees significant opportunities for expansion beyond its home market of India.

Domestic Market Focus

While pushing for international growth, Marico has not lost sight of its domestic market. The company expects to see an improvement in India volume growth in the second half of the current fiscal year. This indicates a strategic focus on increasing market share and penetration within India.

Marico's comprehensive growth strategy demonstrates its ambition to significantly scale up its operations across various dimensions - revenue, profitability, digital presence, and geographical reach. The success of this plan will depend on the company's execution capabilities, market conditions, and its ability to innovate and adapt to changing consumer preferences.

Investors and market observers will likely keep a close watch on Marico's progress towards these targets in the coming years, as they could have significant implications for the company's market position and financial performance.

Marico , a leading Indian consumer goods company, has reported strong financial results for Q2, showcasing significant revenue growth despite challenges in maintaining profit margins.

Revenue Surge

Marico delivered consolidated revenue growth of 31% year-over-year to ₹3,482 crore in Q2. This impressive performance was driven by strong growth in both domestic and international markets.

Segment Performance

• India Business: Grew by 35% year-over-year
• International Business: Achieved 20% constant currency growth

Digital-First Portfolio Milestone

The company's digital-first premium personal care portfolio crossed the ₹1,000 crore Annual Recurring Revenue (ARR) mark, highlighting Marico's success in the premium segment.

Profitability

Despite the strong top-line growth, Marico faced margin pressure due to input cost inflation. The company reported:

• EBITDA growth: 7% year-over-year

Key Financial Metrics

Analysis

Marico's Q2 results demonstrate the company's ability to drive strong revenue growth across its business segments. The significant growth in the India business and the solid performance of the international business underscore Marico's robust market position and effective growth strategies.

The milestone achieved by the digital-first premium personal care portfolio indicates Marico's successful penetration into high-value market segments and its ability to capitalize on evolving consumer preferences.

However, the disparity between revenue growth (31%) and EBITDA growth (7%) suggests that Marico is facing challenges in maintaining its profit margins. The company explicitly mentioned margin pressure due to input cost inflation, which is impacting its overall profitability.

Moving forward, investors and analysts will be keen to see how Marico balances its impressive top-line growth with efforts to improve profitability. The company's strategies to mitigate input cost pressures and optimize its product mix will be crucial in the coming quarters.