Marico to double sales in 4 years

Company will focus on emerging markets

FMCG firm Marico is aiming to double its sales in the next four years with emerging markets of Asia and Africa expected to be lead the growth, with focus on key categories including hair, food and wellness.

The company, which reported net sales of Rs 4,676.18 crore in the previous fiscal, in an investors' update outlined its medium term strategic approach stating its business ambition is to "double topline in 4 years".

The company at present has operations in Bangladesh, Egypt, the Middle East, South Africa, Malaysia and Vietnam and is also looking at expanding its global operations further.

"Expansion in adjacent markets such as Nepal, Pakistan, Cambodia, Myanmar, Sri Lanka, North Africa etc., is expected to contribute up to Rs 100 crore ($17 million) by next year," the company added.

Marico's international business contributed 16% to the company's total turnover and had revenue of Rs 1,168 crore in FY 14.

It said that it expects "top line growth (from international sales) in the region of 15 to 20% in the medium term" and is looking at maintaining its international margins in the region of 14-15%.

"The focus of international business in the coming years will be organic growth. Margins will be maintained in a band and re-invested in the business to reinforce established brands and build new growth engines for the future," it added.

Along with growth expectations from the emerging markets, the company is also bullish on its key categories such as hair and skin.

"The company's aim is to participate in all the sub-segments (of hair care) and have a wider portfolio to drive growth. There may also be an opportunity to enhance the overall sensorial experience of using hair oils by contemporising the product and packaging formats," it said.

Marico's hair product includes Parachute and Nihaar.

It added that the company plans to increase its participation in the skin care segment in the longer term. At present Parachute Advansed Body lotion is Marico's only one product in the skin care category.