Marico to invest in start ups

Purvita Chatterjee Mumbai | Updated on January 22, 2018 Published on November 09, 2015


To step up focus on hair-fall control, male grooming products

FMCG major Marico is adopting an incubation model to prototype its skin and hair care products. It is also looking at investing in start-ups to give impetus to new product development.

Addressing an analysts meet, Marico MD & CEO Saugata Gupta said: “We might take a significant stake in a start-up, as we have already hired people from a start-up background for our hair care and skin care products.

Even in packaging solutions there are people with start-up experience and our prototypes will get incubated through a future start-up incubation model.”

As sales of its Livon brand of hair gels and serums declined during the second quarter due to lack of penetration and low investments, the company is now back to innovating in this segment. It is now planning to introduce sachets to drive volumes.

Cluttered category

“We want to have a larger play in the male grooming category and are seeking 10 per cent growth in categories like gel by making it more affordable through sachets,” said Gupta.

However, Marico prefers to stay away from the cluttered deo category, where it doesn’t have a differentiated offering at present.

The FMCG firm will also focus on categories such as hair-fall control, where it has kept off innovating.

“Since we have not innovated enough for hair-fall, we are now looking at problem-solving hair oils and leave-on products. We are going to become an aggressive player in the ₹900-crore hair fall segment,” said Gupta.

Marico also expects volume and share growth in its Parachute oil franchise, which saw a 6 per cent sales dip in October.

Marico is also planning to step up M&A activity going forward. “We have set up a dedicated cell for M&A, which will report directly to me,” added Gupta.

Published on November 09, 2015
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