In a bid to expand its international business, Fast Moving Consumer Goods (FMCG) major Marico will grow its product portfolio for the Middle East and North Africa regions (MENA).

The company will be expanding its portfolio in the hair oils category for the region. “MENA region has a significant profit pool that presents a sizeable opportunity for Marico, and we aim to dial up our efforts in terms of expanding our portfolio of hair oils and other categories and continue to grow in double- digits in these markets,” said Pawan Agrawal, Group Chief Financial Officer, Marico Limited.

The Mumbai-headquartered company in December acquired the personal care brands “Purité de Prôvence” and “Ôliv” to expand its presence in the female grooming portfolio in the Vietnamese market. Vietnam along with Bangladesh contributes to 75 per cent of Marico’s international business and the remaining 25 per cent is from the Middle East, North Africa, and South Africa markets.

Strategic growth and Diversification

Marico has strategically grown its international business and diversified with acquisitions to expand its overseas presence. Investec research in December stated Marico’s plan to diversify its Vietnam business with the acquisition will boost the market in the personal care segment. The report stated that the company will add 14 per cent to sales of the Vietnam business with the acquisition.

“It is important to have the right portfolio and the right GTM, driving an optimal cost structure and the right systems and processes. Diversification has been one of the pillars of driving growth in Bangladesh. The revenue dependence of the Bangladesh business on Parachute Coconut Oil used to be about 90 per cent until a few years ago. The company has accelerated portfolio diversification and forayed into multiple categories like shampoos, baby care, skin care, and value-added hair oils. Now, the dependence on Parachute oil stands at about 60 per cent,” said Agrawal.

Global recession

While companies are globally facing headwinds owing to demand slowing down due to inflationary pressures the company does not see its growth trajectory being impacted in the medium term. “We have been delivering high single-digit or double-digit growth in constant currency for the past eight quarters. Each of the markets have been delivering healthy growth. There have been short-term headwinds in Bangladesh in terms of currency depreciation and inflation but it still has been quite resilient. From our portfolio since we are market leaders in the category we operate to that extent we have not felt the pinch of demand significantly slowing down,” said Agrawal.

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