Marico aims for up to 10% sales volume growth in FY19

With good rural growth, homegrown FMCG firm Marico, that makes products under Parachute and Saffola brands, is aiming for a volume growth of 8-10 per cent this fiscal year.

Noting that in the last two quarters, with rural recovery and perhaps rural growth outstripping urban growth, the company Friday said focusing on both premiumisation and rural remain equally attractive.

"Rural consumption will continue to be critical, especially starting before elections, rural consumption dips a little bit and I think the volume growth in the sector will continue to improve in the next couple of quarters. We have seen both competitive intensity and wholesome innovation being critical for the sector to perform," Marico managing director and chief executive officer Saugata Gupta said on the sidelines of the CII FMCG event here.

"We are aspiring to deliver 8-10 per cent volume growth in second half. There could be fluctuations in terms of quarterly, but we should be in a position to driver 8-10 per cent," he added.

While indicating that margins are important, he said that getting volume growth is difficult and hence the industry will look at driving volume growth.

He added that the softening of the input costs including copra is good for the industry and the company will continue to invest on new product development and launches.

"We will continue to invest behind new products. We have always believed in creating new differentiated products both at the top end and driving affordability at the bottom end. What works for the sector and for us is that if you have input cost softening it gives you the play area to invest behind the products and get the growth," he said.