Marico Inds likely to expand food business

Marico Industries, which has been beefing up its haircare portfolio with two overseas acquisitions in Egypt recently, will soon look at expanding its foods business.

At present, the foods business of Marico comprises Saffola edible oil and its brand extensions apart from Sweekar oil and processed food brand SIL which has products like jams and sauces.

Harsh Mariwala, chairman and managing director, Marico said that the company would look at leveraging the health plank in the foods business. Saffola, the edible oil and food mixes brand is positioned on the health platform.

Mariwala added that the company would be looking at introducing unique products in the category, either on its own or through acquisitions. "If it is a me-too product that can be easily copied by someone else, we wouldn't be too keen on it," he said.

Analysts said that as neither Sweekar nor Sil fit in with the health-based positioning that Marico has adopted for its foods business, divesting the brands is the most probable option.

However, Mariwala denied that the company may divest its foods brands as the company increases its focus in personal care. Declining to comment on any specific plans for SIL and Sweekar, Mariwala said that both brands are on maintenance mode.

"We are not investing behind either brand at present. Sweekar is a low margin brand for the company while SIL is a very small brand," said Mariwala.

Saffola has over the last few years been extended into other categories like salt and functional foods.

It is likely to be used as an umbrella brand for future organic growth of Marico's food business.

The brand has been growing well for the company, posting a 20 per cent increase in volumes in the September quarter this year.