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Marico Ltd aims to hit the ₹1,000 crore-mark over the next two years in the healthy food segment. The FMCG major, which recently acquired majority stake in healthy snacks brand True Elements, clocked revenue between ₹450-500 crore in FY 22 in the foods portfolio.
Sanjay Mishra, COO- India and CEO- New Business, Marico Ltd told BusinessLine, “We aim to leverage on our product portfolio targeted at the health conscious consumers and expand distribution to hit the critical turnover of ₹850-1,000 crore in the next two years. We will build this portfolio both organically and inorganically. We have already achieved revenue of ₹450-500 crore from foods registering a growth of about 50 per cent.”
Sanjay Mishra
The company’s healthy food portfolio (non edible-oils) includes oats, honey, chywanprash, kadha mix and soya chunks, among others, under brand Saffola. Within a year of launch, soya chunks has scaled up to the ₹50 crore-mark. The portfolio also includes a range of meal replacement shakes and soups under brand Fittify.
“This year, we have increased the addressable market for brand Saffola, with the launch of peanut butter and mayonnaise. Saffola has a large base of health-aware consumers. So, we have a strong pipeline of innovations that will be launched in the coming days and targeted at all consumption occasions. We are looking at categories where we can bring a differentiated proposition,” he said. Mishra added that the strategic investment made in the healthy snacks brands True Elements is another step in expanding the addressable market in the healthy foods space.
One of the key levers to achieve the critical revenue mark for the portfolio will also be a wider distribution.“ We aim to double our food portfolio distribution in the next two years. We will have a dedicated go-to-market strategy and create a sales force that will only focus on distribution of the foods portfolio. This will help grow the portfolio’s distribution, especially in the general trade stores in the top 50 cities. We already have a strong distribution in e-commerce and modern trade stores ,” Mishra explained.
The company said the segregated food go-to-market strategy has already been piloted in a few markets and now it will be scaled up across the country. “Focusing on the right kind of outlets will bring a competitive edge. It will not only help in strengthening the availability of our foods portfolio, but also help in better visibility and activations at the outlets,” he added.
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