Marico’s ₹10,000 Cr Growth Model: Beyond Parachute

Marico is not a brand that often makes headlines.

But its products are likely in your home - on the kitchen shelf, in the bathroom cabinet, maybe tucked away in your travel bag.

Over the years, it has quietly built one of India’s most trusted consumer portfolios.

From Parachute hair oil to Saffola oats, Marico has shaped its growth by staying close to how Indian households live and shop.

Its journey began with something simple: coconut oil.

Parachute became a household name, and that early trust helped Marico understand something crucial: consumer loyalty, once earned, can carry a business forward for decades.

It gradually expanded into value-added hair oils with Nihar, Hair & Care, and Livon, addressing different needs and preferences without straying too far from its core.

Then came Saffola.

Initially focused on edible oils, it soon grew into a broader health and wellness platform. Foods like oats, honey, soya chunks, and ready-to-cook meals followed.

This shift changed the structure of Marico’s business.

In FY25, the foods segment crossed ₹900 crore in revenue, up 44% from last year, with Saffola Oats leading the category.

Alongside that, Marico has been building its presence in premium personal care.

Brands like Beardo, Just Herbs, and Plix - mostly digital-first - are adding a new dimension to their portfolio.

Beardo has scaled nearly 4x since FY21, while Just Herbs crossed ₹100 crore in revenue.

Together, these businesses reached a ₹750 crore annual revenue run-rate this year.

Between foods and digital-led personal care, they now account for 22% of the domestic mix. By FY27, Marico expects this share to touch 25%.

The domestic market still drives most of its growth.

The company operates eight manufacturing facilities across the country in places like Baddi, Guwahati, and Jalgaon, serving millions of households across India.

Parachute still dominates with a 63% share in the branded coconut oil segment and contributes 38% of India's business revenue.

Value-added hair oils account for 19% of the revenue mix, with a 28% value share, while Saffola, with a 41% market share, contributes 26%.

Internationally, the company’s footprint has expanded to over 25 countries.

Key regions include Bangladesh, Southeast Asia, the Middle East, North Africa, and South Africa.

Together, they contribute around 26% of Marico’s overall revenue. But global expansion comes with its own challenges.

Bangladesh alone accounts for nearly 44% of international sales, or roughly 11–12% of the company’s total revenue.

In 2024, political unrest disrupted manufacturing in key locations like Gazipur and Chattogram.

The result was a temporary halt in operations and a 4% dip in the company’s stock.

It served as a reminder of how concentrated exposure to a single market can become a risk, even when that market has delivered consistent returns.

Despite that, Marico’s financial performance has remained solid. In Q1 FY26, revenue rose 24% year-on-year to ₹3,315 crore.

For FY25, full-year revenue touched ₹10,831 crore, marking a 12% increase.

The competitive landscape only makes this journey more striking.

Marico operates alongside giants like ITC, Hindustan Unilever, Dabur, and Emami - companies with deep distribution networks and powerful brand portfolios.

Yet, Marico has carved its own space by focusing on steady, consumer-driven growth.

It continues to lead in the categories it started with, like coconut oil and hair care, but has also built strong positions in health foods and personal care.

Unlike some brands that chase quick trends or make bold shifts, Marico listens to what consumers need and builds around that.

While other companies try to stand out with noise, Marico sticks to what works.

And over time, that steady approach has helped it stay strong and keep moving forward.

Sources:

Fortune India
Marico Investor Presentation June-2025
Marico
Reuters
Marico Annual Report FY24
Economic Times
Kotak Securities