Marico predicts an improvement of 200-250 bps in FY24 for its gross margins, supported by cooling commodity inflation and normalisation of portfolio mix. The company expects "volume-led growth" in the domestic market, driven by expansion in distribution, cost controls, and investments in brand building. Marico aims to deliver 13-15% revenue growth in the medium-term, sustained by 8-10% domestic volume growth, and double-digit constant currency growth in international trade.
FMCG makers are accelerating digitalisation and are investing in building capability in e-commerce and Direct-to-Consumer channels, identifying it as a key vector of their growth as the threat of a possible third wave is still not away.
Consumers may have to shell out more money for their daily use products as FMCG firms, which are facing inflationary pressure on their key raw material inputs, are considering marginal hike on their products price to offset it. Some FMCG companies like Marico and others have already gone for price hike, while some which include Dabur, Parle and Patanjali are closely monitoring the situation. FMCG players have been trying to absorb the price increase of raw material inputs such as coconut oil, edible oil and palm oil, but they are unlikely to hold the prices of their commodities for a long time as that will impact their gross margins.