Marico Confident In Hair Oil Comeback, Sees Double-Digit Growth Ahead: CEO

Marico Ltd. expects a gradual recovery in its value-added hair oils segment, driven by increased brand investments and improving rural consumption trends, according to Chief Executive Officer Saugata Gupta.

The segment declined 2% in value terms in the December quarter, but the mid and premium segments performed better, helping the company gain market share, the managing director told NDTV Profit.

There has been a combination of factors impacting the category, including consumer downgrading and competitive activity at the lower end of the market. Some players are not driving category growth through above-the-line investments, Gupta said. "Since the last quarter, we have shifted our strategy to focus on mid and premium segments, and we remain committed to long-term brand equity."

With brands like Parachute Advansed, Nihar Naturals, and Hair & Care, VAHO contributed 19% of Marico's domestic revenue in the quarter, according to the investor presentation. Marico, which holds a 55% market share in the VAHO segment, expects improved performance through brand activations and sustained above-the-line investments.

Saugata Gupta, CEO of Marico Ltd. (Image source: LinkedIn)

Budget To Boost Growth

Gupta said the Union Budget was a "bold and pragmatic" move that will put more money in consumers' hands, boosting demand across multiple sectors, including fast-moving consumer goods, retail, apparel, quick-service restaurants, automobiles and two-wheelers.

"There has been consumption stress over the last one or two years, particularly in the urban middle class, due to food inflation and stagnant wages. This budget will lift sentiment and translate into higher spending, driving demand and investment across industries," he said.

Marico is confident in delivering volume growth and double-digit revenue growth in the coming quarters despite potential margin pressures in the short term. "We are at the tail end of the inflation cycle and while there may be transient margin pressures, we remain committed to investing in brand equity rather than cutting advertising and promotional expenses," he said.

Marico reported its highest revenue and volume growth in the last 10–12 quarters, supported by resilient input cost management and strong performance across its core and digital-first brands, the CEO said. The company's urban portfolio, which accounts for 70% of its total business, remains a key driver of growth.

The digital-first brands, including Beardo (male grooming), Just Herbs (cosmetics), Plix, and Pure Sense (skin care), contributed approximately Rs 600 crore in revenue.

International Business

Gupta said Marico's international business continues to deliver strong performance, with double-digit constant currency growth in most of its key markets. While Bangladesh remains a significant contributor, the company is actively reducing its dependence on the market by expanding in the Middle East and North Africa. "We are aggressively investing in MENA, where there is significant headroom for growth. Unless there is a major acquisition, international business contribution is unlikely to see a significant increase," he said.

According to the investor presentation, Marico's Bangladesh business posted a 20% constant-currency growth in the December quarter, demonstrating resilience despite macroeconomic challenges. MENA delivered a 35% CCG, driven by strong growth in the Gulf region and Egypt. South Africa registered 17% CCG, while Southeast Asia had a softer quarter.

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