Fast moving consumer goods major Marico's plans to cut prices of coconut oil and super premium refined edible oil temporarily will boost its volumes, according to Edelweiss Securities.
“Despite moderate volume growth in Saffola over the near term, the management expects a longer term 13-15% volume growth. The hair oil category growth is expected to gain momentum (already on a fast track) on account of increased demand amongst the youth for 'leave-on’ nourishment as chemical hair treatment becomes more prevalent leading to damaged hair,” said Abneesh Roy, associate director, institutional equities, Edelweiss Securities in a note to clients
Roy is also bullish about the Kaya stores of the company. Kaya skin bar, the prototype stores will be launched in Q4FY13. “These are low capex stores, require lower floor space, lower employee cost and focus more on product sale than treatments,” Roy said.
