Higher dependence on hair oil segment puts Marico on slippery slope

Saffola volume surges by a fourth, but 8-11% volume fall in hair oil pulls down top line by 7%

While there have been expectations of a change in consumers' buying behaviour amid the Covid-19 pandemic with a preference towards essential items, such as food and hygiene products, Marico’s higher dependence on its hair oil category (Parachute rigid and value-added hair oil or VAHO), which is relatively discretionary in nature, has taken a toll on its performance in the March 2020 quarter (Q4).

In fact, Marico’s management indicated a change in strategy, depending on the demand pattern. This includes lowering investments in most-discretionary personal care segments, such as male grooming, and increasing focus on essential items, such as food and hygiene