Coconut and hair oil manufacturer Marico Ltd. has been no exception to the weakness seen by consumer companies in India, not only due to a slow recovery in demand but also weakness on account of the impact of demonetisation. But the financial year 2017-18 is likely to see growth recover, Saugata Gupta, the company's chief executive officer and managing director told BloombergQuint in an interview.
After a challenging financial year, Marico expects to register 15 percent revenue growth in FY18 backed by price hikes and a low base, Gupta said. The company has undertaken a price hike of 8 percent so far and has not ruled out another hike in the financial year. Volume growth on a low base is likely to lift the revenue.
We see more growth in the in the second half of the year partlybecause of a lower base in the third quarter owing to demonetisation. We will be happy if wecan deliver 8-10 percent volumes for the full year.SaugataGupta, MD and CEO, Marico
Gupta maintained the company will continue to focus on growing volumes and market share, subject to a threshold limit on margins. He said the company would do well to maintain blended group margins between 17-18 percent for the year.
According to him, the implementation of the Goods and Services Taxes (GST) regime may pose temporary and transitional challenges in the year but will have little impact on consumption trends.
Also Read: Marico Stays Firm On Growth In January-March Quarter Despite Soaring Copra Prices
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