Marico eyes acquisitions of Rs 1,000 cr

FMCG firm Marico today said it is looking at acquisitions worth up to Rs 1,000 crore both in the domestic and overseas markets as part of its strategy to maintain a growth of 26-27% in the coming years.

The company, which makes 'Parachute' brand of hair oil among others, said though inflationary pressure has started to ease, it is too early make any price corrections since the input costs are still high.

"Marico is a growth oriented company. We have grown almost 26-27%. We will try and maintain our high growth rates through both organic and inorganic routes. We will tap new opportunities available through acquisitions," Marico Limited Chairman Harsh Mariwala told reporters on the sidelines of a FICCI event.

Asked about the size of the acquisitions that the company is targeting, Mariwala said "the range of the acquisition would be anywhere between Rs 200 crore and Rs 1,000 crore".

He, however, declined to give a time frame but said the firm would look for companies and brands in the beauty and wellness segments.

Last year, Marico had acquired 85% stake in Vietnamese firm International Consumer Products for an undisclosed sum.

In 2010, the Mumbai-based firm had bought hair styling brand "Code 10" from Colgate-Palmolive apart from buying out the aesthetics business of Singapore-based Derma Rx Asia Pacific (Derma Rx) in the same year.

Mariwala said despite the global economic scenario and high inflation, consumer sentiment and overall demand in the FMCG sectors have been good.

"It's a good sign that inflation is going down (but) it may be too premature to come to the conclusion that end prices of finished products will start falling," he said.

Asked if the input costs are likely to come down, Mariwala replied in the negative saying it is difficult to predict as the key factors that impact the input cost are the "crude prices, the exchange rate and the overall demand-supply balance for agricultural products".