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Informist, Tuesday, Jan. 27, 2026

 

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--Marico: Will pass benefit of lower copra prices to consumers in coming mos 
--CONTEXT: Comments by Marico's management in post-earnings analyst concall 
--Marico: Will continue efforts at pdt premiumisation, led by Saffola Gold 
--Marico: Will not take multiple price cuts due to lower copra prices 
--Marico: Have strategy for cold-pressed oils category, co not late to party 
--Marico: Focused on driving diversification agenda in India, abroad

 

By Shakshi Jain and P. Madhu Kumar

 

MUMBAI – Fast-moving consumer goods major Marico Ltd. plans to pass on the benefit of the recent correction in prices of copra, a key raw material, to consumers in the coming months, the company's management said in a conference call with analysts Tuesday.

 

"With correction having set in and copra prices down by around 25% to 30% from peak levels, the brand will be passing on the benefit to the consumer in the coming months, as and when we believe it is the right time to do it," the management said, later adding that the company is waiting to get a firm handle on how copra prices will move, which is expected by March-April. The company will implement the price cut in one go, as multiple price cuts disturb trade results.

 

Copra is a key raw material for the FMCG player's Parachute coconut oil, which accounts for 36% of the company's domestic revenue. It is also an important raw material for the company's value-added hair oils portfolio, which accounts for 18% of the company's revenue in India. 

 

"...we had not taken price increase in line with the increase in copra prices. The copra prices had shot up by more than 200% but we had taken price increase of 60%. So now that the copra prices are corrected by 25-30%, we are not taking any immediate (price) correction," the management said.

 

In the December quarter, Parachute coconut oil recorded a marginal year-on-year decline in volume but saw a 50% growth in value. However, after "normalising for ml-age reductions", volumes grew 2% on year for the quarter, the company said in a presentation to investors. Marico's Saffola edible oils portfolio also had a soft Oct-Dec quarter with a marginal year-on-year decline in volumes and a flat value growth. 

 

"Going forward, the brand will continue to sharpen its premiumisation agenda, led by Saffola Gold..." the management said, adding that it expects Saffola to chart an improving volume growth trajectory in the coming quarters.

 

On a query regarding whether the company was late to enter the cold-pressed oils category, the management said, "We are not late to the party at all...we would call ourselves the fast follower with a brand which has significant equity and we have now a broad participation strategy." While sales in the category are currently skewed towards e-commerce channels, the company expects to see significant presence of cold-pressed oils in the modern trade and general trade channels in a couple of years. 

 

Overall, Marico remains focused on advancing its diversification agenda in both India and overseas, the management said.

 

Marico announced its December quarter earnings after market hours. Ahead of the earnings, the company's shares closed Tuesday's session 0.7% higher at INR 745.80 on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

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