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FMCG firm Marico, speculated to be selling its edible oil brand Sweekar, on Thursday said it will look at restructuring its portfolio, including divestment of some of brands as part of its growth strategy.
“All growth-oriented companies, including Marico, do scrutinise their portfolio from time to time and explore opportunities of restructuring,” Marico Ltd Chief (Finance, Human Resource and Strategy) Mr Milind Sarwate told PTI.
He said the company might look at divesting some of its brands as part of the restructuring process. “Such exploration could on occasions lead to a divestment,” he added without specifying and giving further details on it.
When asked if the company was selling the Sweekar brand, he said: “Marico does not, as a matter of policy, react to market speculations about any acquisition or divestment.”
Kolkata-based Emami, which has been linked with a possible interest to acquire the brand from Marico, declined to confirm.
“We are always looking at opportunities in various sectors. We will explore any such offer that comes our way,” Emami Group Director Mr Aditya Agarwal said, adding the group would look at both organic and inorganic growth to grow its brand ‘Healthy and Tasty’ across India.
According to experts, Marico has been looking at selling its oil brand ‘Sweekar’ in order to focus on ‘Saffola’- the company’s flagship edible oil brand.
“Marico has been looking at discontinuing ‘Sweekar’ brand, though they are not desperate on selling it off at the moment. Their main focus at present is to grow its other edible oil brand ‘Saffola’,” India Infoline Research Analyst Ms Vanmala Nagwekar said.
She said Marico had not stopped production of ‘Sweekar’ and was likely to continue selling it, as it was still giving profits. However, the company has not been investing much on the brand lately. Sweekar is a significant part of Marico’s portfolio having an annual turnover of around Rs 200 crore.
“It has a pan India presence with greater focus on the West and the South. We believe Sweekar has a good growth potential, considering the India consumer story and the increasing focus on health and nutrition,” Mr Sarwate said.
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