FMCG giant Marico’s MD highlighted some of the anticipated threats and opportunities that the company worked on resulting in posting a strong performance in the third quarter.
Marico’s CEO and MD Saugata Gupta said the company anticipated the threat of D2C brands eating into incumbent players’ growth in 2020. Therefore, the company continued to invest in brand building across input cost cycles and accelerated diversification.
The company purchased a 54 percent stake in D2C healthy snacks brand True Elements in 2022 and picked a 58 percent stake in Satiya Nutraceuticals’ plant-based nutrition brand Plix in 2023.
Gupta said that M&A deals in the D2C brands have been fruitful for the FMCG giant.
Marico’s Q3 profit rises to Rs 406 crore, ad spend up 19%
“I think the cash burn in the businesses Plix is all profitable and the burn rate in True Elements is extremely low,” he added. True Elements offers a range of products, including oats, muesli, apart from Indian breakfast items such as poha and dosa, and other snacks.
Gupta exuded confidence that D2C brand Plix would hit 500 crore very soon.
“I look at it in India the biggest consumer need is looking good, staying healthy and young, and I think Plix participates in both of them and therefore there’s extreme tailwind and I think there’s significant capability. I think if we look at it, I believe that in terms of innovation, in terms of high-velocity innovation and digital marketing capability, Plix will be best in class, one of the best-in-class India and even globally,” Marico MD said.
Marico has expanded Plix’s business internationally. It has started to sell Plix in the Middle East and US recently.