Marico targets ₹100 cr revenue from honey brand by next year
Marico aims to fetch revenue of ₹100 crore from its Saffola brand of packaged honey by next year, benefitting from the recent claims around the purity of its honey NEW DELHI : Fast-moving consumer goods company Marico Ltd aims to fetch revenue of ₹100 crore from its Saffola brand of packaged honey by next year, benefitting from the recent claims around the purity of its honey, and plans to reinforce this with greater efforts to expand its packaged and health foods offerings. “Our aspiration is to touch the ₹100 crore mark in revenues by next year, which will make it one of the fastest ₹100 crore journey in the mid-sized foods category, considering that we extended this brand nationally only in November-December 2020," Saugata Gupta, managing director and chief executive officer, Marico, told investors in an earnings call on Thursday. Alibaba’s projected to unveil its slowest pace of third-quarter sales growth in five years on Feb. 2 while it confronts potentially the biggest crisis of its two-decade existence. Uncertainty began in November when regulators first torpedoed Ant Group Co.’s record initial public offering, then launched a probe into the e-commerce firm. Marico targets ₹100 cr revenue from honey brand by next year Saffola honey was launched in June 2020, at a time of rising demand for health and immunity-building products. In December, a Centre for Science and Environment (CSE) report said several Indian honey brands such as Dabur, Patanjali, and Emami’s Zandu were adulterated with sugar syrup according to the globally accepted nuclear magnetic resonance (NMR) test. Saffola was one of the brands that cleared the test. Demand for Marico’s honey is much ahead of estimates, Gupta said. The brand that was largely rolled out across e-commerce and modern trade channels, has since commenced distribution in general trade. The brand faced some capacity problems in December and January, which have now been resolved. “Saffola honey is ramping up very well, much ahead of our launch estimates. Looking at offtake trends, our growth was limited by supply-led capacity constraints, which we plan to overcome in the next few quarters. In honey, we have reached close to double-digit market share in modern trade chains and crossed 20% market share in e-commerce. These two channels are over-indexed in the honey category," Gupta said. The move will set the pace for Marico to expand its foods portfolio. The maker of Parachute hair oil and Saffola oats has set a target of achieving ₹400-500 crore in sales from packaged foods in the next fiscal
