Mumbai, India – Marico, a prominent fast-moving consumer goods (FMCG) company, is seeing substantial returns from its strategic investments in value-added hair oils, which have delivered high-teen volume growth. Saugata Gupta, the company's Managing Director and Chief Executive Officer, confirmed this in an exclusive interview on Wednesday, August 5, 2026, highlighting multiple growth vectors firing simultaneously.
Strategic Moves Drive Growth
Gupta noted that Marico achieved a high single-digit growth in FY26, a commendable feat given a 100 percent increase in copra prices that led to a 60 percent hike in 'Parachute' oil prices. The company responded strategically by implementing price cuts in 'Parachute' loyalty packs once copra prices receded from their peak, particularly in the June quarter.
Beyond traditional offerings, Marico's focus on the premium segment of value-added hair oils has proven particularly lucrative. This part of their portfolio has consistently delivered high-teen volume growth, underscoring the success of their diversification efforts.
Distribution and Market Resilience
The 'Setu' distribution initiative has also been instrumental in driving high-quality growth and encouraging range selling for Marico's secondary brands. This strategy involves field representatives promoting a wider variety of products within a single retail outlet, enhancing market penetration.
Despite global adversities, such as the Middle East conflict, Indian consumers have shown remarkable resilience, largely insulating them compared to other emerging markets where Marico operates. Gupta observed that organized players like Marico are better equipped to navigate supply chain challenges, potentially leading to a consolidation of market shares from unorganized competitors.
Outlook and Investment Strategy
Looking ahead, Marico remains optimistic about sustained demand growth, especially as the overall rainfall deficit has improved. While acknowledging potential headwinds from inflation, Gupta stated that Marico is better positioned due to facing unprecedented inflation in the previous year, expecting a lower impact now with copra prices anticipated to be 30-35 percent below last year's peak.
Marico is committed to its long-term investment strategy, consistently allocating resources towards advertising and promotion (A&P), brand equity, and talent development, regardless of market cycles. The company is strategically narrowing its focus in India to key areas like shampoo, almond and cold-pressed oils, foods, and digital brands. Globally, efforts are underway to reduce concentration risk in its international premiumization journey.
Gupta expressed strong confidence in delivering high single-digit EBITDA growth and potentially exceeding 20 percent EBITDA, even with crude oil prices fluctuating between $85-$90 per barrel.