MARICO

April 2 (Reuters) - Indian consumer firm Marico MRCO.NS expects its fourth-quarter consolidated revenue to grow in the low twenties percentage on a year-on-year basis, the company said on Thursday in a quarterly update.

(Reporting by Komal Salecha in Bengaluru)

((Komal@thomsonreuters.com;))

April 1 (Reuters) - Marico Ltd MRCO.NS:

• PAWAN AGRAWAL TO LEAD OVERALL INTERNATIONAL BUSINESS OF MARICO EFFECTIVE APRIL 1, 2026

• PAWAN AGRAWAL WILL BE DESIGNATED AS GROUP CFO AND CHIEF EXECUTIVE OFFICER - INTERNATIONAL BUSINESS

Source text: ID:nBSEcctsKh

Further company coverage: MRCO.NS

((Reuters.Briefs@thomsonreuters.com;))

** India's Marico MRCO.NS is set to outperform consumer staples peers on revenue and volume growth, supported by a resilient core portfolio, says BofA Securities

** Earnings growth for MRCO is set to improve as prices of key input copra moderate while crude oil impact is relatively low compared to peers - BofA

** BofA retains "buy" with price target of 860 rupees; MRCO stock up 2.6% to 744 rupees

** BofA estimates 8%/15% revenue/earnings per share CAGR growth over fiscal years 2026-2028, citing recovery in value added hair oils segment, foods, premium personal care businesses

** The average rating of 38 analysts tracking MRCO is "buy"; median price target is 860 rupees, data compiled by LSEG shows

** MRCO shares are down 3.4% in 2026 so far, outperforming the 16% drop in Nifty FMCG index .NIFTYFMCG, exchange data shows

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))

Feb 9 (Reuters) - Marico Ltd MRCO.NS:

• MARICO - ENTERS AGREEMENTS FOR STRATEGIC INVESTMENT IN SKINETIQ

• MARICO - UNIT TO BUY 75% OF SKINETIQ SHARES

• MARICO - DEAL FOR 2.62 BILLION RUPEES

Source text: ID:nBSE55bW4B

Further company coverage: MRCO.NS

((Reuters.Briefs@thomsonreuters.com;;))

Feb 4 (Reuters) - Indian consumer firm Marico MRCO.NS on Wednesday said it will buy a 60% stake in homegrown protein brand Cosmix in a 2.26 billion rupee ($24.99 million) deal.

($1 = 90.4490 Indian rupees)

(Reporting by Komal Salecha in Bengaluru; Editing by Sonia Cheema)

((Komal@thomsonreuters.com;))

Jan 27 (Reuters) - Indian consumer goods maker Marico MRCO.NS reported a bigger-than-expected quarterly profit on Tuesday as consumption tax cuts helped boost demand.

The company, known for brands like Saffola cooking oil and Set Wet hair gel, posted a profit of 4.47 billion rupees ($48.74 million) for the quarter ended December 31, up from 3.99 billion rupees a year ago.

Analysts, on average, had expected a profit of 4.44 billion rupees, per data compiled by LSEG.

Domestic consumer goods firms, including Dabur DABU.NS, Godrej Consumer GOCP.NS and Marico, said that demand has rebounded since the tax cuts went into effect at the end of September, following several quarters of muted urban demand.

Sales were disrupted by the tax cuts in the second quarter as consumers deferred purchases until lower prices kicked in.

Earlier this month, Marico said its premium personal care segment, which includes its Parachute brand of body lotion and Livon hair care range, outperformed its expectations.

It added that gross margins are likely to improve in the coming quarters on easing prices of copra, a key raw material for its coconut oil brand Parchute - one of its biggest revenue generators.

Overall revenue jumped nearly 27% to 35.37 billion rupees in the third quarter, aided by an 8% jump in volumes in India, its key market.

"We are optimistic of a gradual uptick in consumption trends across categories in the quarters ahead, supported by favorable macroeconomic indicators and the prospects of further stimulus in the upcoming union budget," the company said.

Meanwhile, rival AWL Agri Business AWLA.NS, previously known as Adani Wilmar, reported higher sales for the third quarter in a business update earlier this month.

($1 = 91.7162 Indian rupees)

(Reporting by Komal Salecha in Bengaluru; Editing by Sonia Cheema)

((Komal@thomsonreuters.com;))

Jan 2 (Reuters) - Marico Ltd MRCO.NS:

• MARICO - CONSOLIDATED REVENUE GROWTH ON A YEAR-ON-YEAR BASIS STOOD IN THE HIGH TWENTIES IN Q3

• MARICO - DURING QUARTER, UNDERLYING VOLUME GROWTH IN INDIA BUSINESS REMAINED IN HIGH SINGLE DIGITS

• MARICO - MAINTAINS ASPIRATION OF DELIVERING PROFITABLE VOLUME-LED GROWTH OVER MEDIUM TERM

• MARICO - ANTICIPATE FURTHER GROSS MARGIN IMPROVEMENT IN COMING QUARTERS

• MARICO - WE EXPECT UPTICK IN GROSS MARGIN ON A SEQUENTIAL BASIS IN Q3

• MARICO - REMAIN OPTIMISTIC ABOUT GRADUAL IMPROVEMENT IN CONSUMPTION IN QUARTERS AHEAD

• MARICO - EXPECT OPERATING PROFIT GROWTH TO TOUCH DOUBLE DIGITS ON A YEAR-ON-YEAR BASIS IN Q3

Source text: ID:nnAZN4RPSOY

Further company coverage: MRCO.NS

((Reuters.Briefs@thomsonreuters.com;))

Oct 31 (Reuters) - India's Patanjali Foods PAFO.NS posted a 67.4% increase in quarterly profit on Friday, on strong demand for its edible oils.

The Sunrich edible oil maker's profit after tax rose to 5.17 billion rupees ($58.82 million) for the quarter ended September 30 from 3.09 billion rupees a year earlier.

Patanjali Foods benefited from a cut in import duty on crude edible oils to 10% from 20%.

The move, aimed at easing inflation and boosting domestic refining, reduced the cost of local processing and supported edible oil makers' margins.

Revenue from Patanjali's edible oils business, which makes up nearly 70% of the total, rose 17.2% during the quarter to 69.72 billion rupees.

The firm also reduced prices on select edible oils, including its ghee, to pass on benefits from a recent cut in goods and services tax to customers.

Larger rivals AWL Agri Business AWLA.NS and Saffola owner Marico MRCO.NS are yet to report results.

Overall revenue increased by 21% to 97.99 billion rupees.

Shares of Patanjali ended 1.2% lower ahead of the results on Friday.

($1 = 87.8950 Indian rupees)

(Reporting by Yagnoseni Das and Meenakshi Maidas in Bengaluru; Editing by Ronojoy Mazumdar)

((Yagnoseni.Das@thomsonreuters.com;))

Oct 13 (Reuters) - Marico Ltd MRCO.NS:

• MBL INDUSTRIES VOLUNTARILY LIQUIDATED EFFECTIVE SEPTEMBER 18, 2025

Source text: ID:nBSE8f1K0s

Further company coverage: MRCO.NS

((Reuters.Briefs@thomsonreuters.com;))

Oct 3 (Reuters) - India's Marico MRCO.NS sees its second quarter consolidated revenue growing at about 30% year-on-year, driven by price hikes and higher sales of its premium hair oils.

Revenue from operations grew 8% in the year ago quarter.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Mrigank Dhaniwala)

((Ananta.agarwal@thomsonreuters.com;))

Oct 1 (Reuters) - Marico Ltd MRCO.NS:

• LIQUIDATOR DISTRIBUTES APCOS BUSINESS TO MARICO

• APCOS BUSINESS CONSOLIDATED WITH MARICO EFFECTIVE OCT 1, 2025

Source text: ID:nNSEDSJgQ

Further company coverage: MRCO.NS

((Reuters.Briefs@thomsonreuters.com;;))

** Shares of Marico MRCO.NS fall 1.3% to 714.75 rupees

** India's Income Tax department is conducting surveys across Marico's offices and facilities pan India, CNBC TV-18 reports

** The department's Mumbai investigation unit is directing the exercise; details of the investigation are awaited - report

** Marico and IT department did not immediately respond to Reuters' request for comment

** Forty analysts covering MRCO have a "buy" rating on avg; median PT is 805 rupees - data compiled by LSEG

** Stock up ~12% YTD

(Reporting by Urvi Dugar)

((UrviManoj.Dugar@thomsonreuters.com))

Sept 11 (Reuters) - Marico Ltd MRCO.NS:

• MARICO LTD - TO BUY REMAINING 46.02% STAKE IN HW WELLNESS

• MARICO LTD - ACQUISITION VALUED AT UP TO 1.38 BILLION RUPEES

Source text: ID:nBSEc5ngqX

Further company coverage: MRCO.NS

((Reuters.Briefs@thomsonreuters.com;;))

Adds details throughout

Aug 4 (Reuters) - Indian consumer goods maker Marico MRCO.NS reported a first-quarter profit on Monday that topped analyst expectations, benefiting from steady demand for its cooking and hair oils.

Its consolidated net profit rose nearly 9% to 5.04 billion rupees ($57.51 million) in the April-June quarter, beating analysts' expectations of 4.86 billion rupees, according to data compiled by LSEG.

Domestic volumes rose 9%, led primarily by its Saffola brand cooking oils and hair oils.

Packaged cooking oil, a staple in Indian households, has been largely resistant to a slowdown in sales that has dented the margins of other consumer conglomerates which have a broad portfolio of personal care and household items.

Marico has also passed on the benefits of the recent import duty reduction on edible crude oils used to refine its 'Saffola' cooking oils, to its customers.

Saffola oil volumes rose in mid-single digits in the first quarter, while revenue in the segment rose 28%, Marico said.

Volumes of Marico's 'Parachute' brand of coconut oil rose about 1% and revenue grew 31%, as price hikes undertaken to mitigate commodity cost inflation padded the topline but crimped demand.

Together, they make up about half of Marico's revenue in India.

Marico also joined companies such as Dabur DABU.NS and Hindustan Unilever HLL.NS in highlighting improving demand conditions in urban areas, after several quarters of a spending slowdown amid the high cost of living.

Its overall revenue rose 23.3% in the first quarter, to 32.59 billion rupees, coming in above analysts' average estimate of 32.1 billion rupees.

Shares of Marico were up 1.87%.

Peer AWL Agri Business AWLA.ns, previously known as Adani Wilmar, reported a nearly 25% fall in first quarter profit in July, as higher prices of branded palm oil led consumers to opt for cheaper alternatives.

($1 = 87.6440 Indian rupees)

(Reporting by Ananta Agarwal in Bengaluru; Editing by Sonia Cheema)

((Ananta.agarwal@thomsonreuters.com;))

Adds CEO comment in paragraph 10, background in paragraph 9

July 15 (Reuters) - India's AWL Agri Business AWLA.NS, previously known as Adani Wilmar, reported a nearly 25% fall in quarterly profit on Tuesday, as higher prices of branded palm oil led consumers to opt for cheaper alternatives.

Indian consumers operating on tight budgets due to slow wage growth have been increasingly shunning large brands in response to price increases.

AWL, which makes the Fortune brand of cooking oil, reported a consolidated net profit of 2.36 billion rupees ($27.51 million) for the first quarter ended June 30.

Sales volumes in its mainstay edible oil business, which accounted for four-fifths of its topline, dropped 4% on slow palm oil sales, even as higher prices helped push revenue higher.

Volumes in the segment "remained under pressure, largely due to sluggish palm oil sales driven by its relatively higher prices," AWL said, adding it lost market share during the quarter.

Overall revenue rose 21% to 170.59 billion rupees.

AWL's food business, which sells staples such as rice and pulses, posted a 5% fall in volumes, excluding a one-off impact, as wheat flour sales struggled due to soft demand, stiff local competition and higher prices.

Shares fell 2.2% post-results.

In the coming quarters, AWL expects sales volumes to rebound, with palm oil prices stabilising and inflation slowing to a more than six-year low last month.

"As the inflation comes down ... food is the first product on which consumers are a little more likely to spend liberally," CEO Angshu Mallick told Reuters, adding consumers would now buy more branded foods, including tea and bread.

Rival Marico MRCO.NS, which sells the Saffola brand of cooking oil, is yet to report results. It said in an update earlier this month that quarterly revenue would grow in the low-20s percentage range on improving rural demand.

($1 = 85.7870 Indian rupees)

(Reporting by Praveen Paramasivam; Editing by Janane Venkatraman)

((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))

July 11 (Reuters) - Marico Ltd MRCO.NS:

• MARICO -REMAIN FOCUSED ON SCALING TOWARDS 200 BILLION RUPEES IN REVENUE BY2030 -ANNUAL REPORT

• MARICO - ASPIRE TO DELIVER DOUBLE-DIGIT EBITDA MARGIN ACROSS DIGITAL-FIRST PORTFOLIO BY FY27

• MARICO - EXPECT DIGITAL-FIRST PORTFOLIO TO REACH 2.5X OF THE FY24 EXIT RUN-RATE BY FY27

Source text: [ID:]

Further company coverage: MRCO.NS

((Reuters.Briefs@thomsonreuters.com;))

** Marico MRCO.NS gains 4% to 742 rupees

** "Saffola" oil maker's quarterly revenue rises in low-twenties percentage range in April-June quarter, led by sustained demand from rural consumers

** Nuvama says co's quarterly update in line with their expectations

** Adds co showed "strong performance across segments"

** Raises its Q1 revenue growth estimate for co to 22.4% y/y from 21.5%

** Q1 revenue of peer AWL Agri Business AWLA.NS, formerly called Adani Wilmar, rises 23% y/y on higher edible oil prices

** YTD, MRCO gains 16% vs AWLA's ~17% decline

(Reporting by Kashish Tandon in Bengaluru)

((Kashish.tandon@thomsonreuters.com))

Adds details from paragraph 2 onwards

July 3 (Reuters) - India's Marico MRCO.NS said on Thursday consolidated revenue registered a low-twenties percentage growth in the quarter ended June 30, driven by sustained demand from rural consumers, although margins remained under pressure.

The consumer goods maker forecasts gross margin to remain under "incremental pressure" due to high costs of key raw materials such as copra, but expects these pressures to ease in the second half of the fiscal year.

Marico said it sees growth in operating profit to be modest on an on-year basis in the first quarter.

The 'Saffola' oil maker has benefited from improving rural demand for its products at a time when consumer goods makers have been dealing with sluggish urban consumption amid high cost of living.

Marico said that demand remained steady in the first quarter with improving trends in its rural markets.

It added that it expects overall sentiment to improve gradually in upcoming quarters on the back of easing inflation, a favourable monsoon season and policy stimulus.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Sonia Cheema and Eileen Soreng)

((Ananta.agarwal@thomsonreuters.com;))

May 8 (Reuters) - India's consumer goods sector reported an 11% growth in value in the March quarter, as rural growth outpaced that in urban areas for the fifth straight quarter, market research firm NielsenIQ said on Thursday.

Rural areas - which account for just over a third of overall consumer goods sales - have become a bright spot for an industry that is struggling with higher living costs and slow wage growth in large cities.

"Rural markets continue to drive growth, whereas urban metros continue to see a shift toward E-commerce," Roosevelt Dsouza, head of customer success for consumer goods at NielsenIQ, said.

Although rural consumption growth slowed in the March quarter, with volumes rising 8.4% compared to 9.2% in the previous three months, it still outpaced urban demand, where growth decelerated to 2.6% from 4.2%.

Price increases also contributed to the overall value growth, with the cost of staples such as edible oil rising 5.6% during the quarter, compared with just 0.3% in the same period a year ago.

Low base, rural growth, and easing inflation are helping smaller players, which saw 17.8% growth in value, outpacing the broader FMCG market, the report said.

Indian consumer goods maker Marico MRCO.NS reported fourth-quarter profit above analysts' expectations, boosted by improving rural demand and price increases for its key packaged oil brands—underscoring the strength of non-urban markets.

The company also said it plans to expand its presence in villages across India.

Smaller manufacturers are driving consumption compared to larger players, whose volume growth has halved compared to the December quarter, NielsenIQ said.

Hindustan Unilever HLL.NS and Nestle India NEST.NS reported weaker fourth-quarter profits, with Hindustan Unilever cutting its margin forecast amid high commodity costs and sluggish urban demand.

Going ahead, NielsenIQ said revised tax slabs and a favorable monsoon forecast could further lift consumption in the coming quarters.

(Reporting by Ashish Chandra in Bengaluru; Editing by Sonia Cheema)

((ashish.chandra@thomsonreuters.com; +91 7982114624;))

May 2 (Reuters) - Marico Ltd MRCO.NS:

• RE-APPOINTS SAUGATA GUPTA AS MD, CEO

Source text: [ID:]

Further company coverage: MRCO.NS

((Reuters.Briefs@thomsonreuters.com;;))

April 3 (Reuters) - Marico Ltd MRCO.NS:

• MARICO LTD - EXPECTS MARGINAL OPERATING PROFIT GROWTH YOY IN Q4 FY25

• MARICO - CONSOLIDATED REVENUE GROWTH MOVED TO HIGH-TEENS ON A YEAR-ON-YEAR BASIS IN QUARTER

• MARICO LTD - CONSOLIDATED BUSINESS SEES LOW DOUBLE-DIGIT REVENUE GROWTH FY25

• MARICO LTD - INDIA BUSINESS SEES SEQUENTIAL UPTICK IN VOLUME GROWTH IN Q4

• MARICO - EXPECT TO MAINTAIN DOUBLE-DIGIT REVENUE GROWTH MOMENTUM IN FY26

• MARICO LTD - SECTOR EXPERIENCED STABLE DEMAND TRENDS IN Q4 FY25

Source text: ID:nBSE3Lpvps

Further company coverage: MRCO.NS

((Reuters.Briefs@thomsonreuters.com;;))

** Shares of India's Marico MRCO.NS rise 3% to a one-month high of 642.9 rupees

** Motilal Oswal expects an 11% compounded annual growth in revenue over FY25-FY27, adds that a double-digit revenue growth forecast missing for most peers

** Brokerage reiterates "buy" rating with a PT of 775 rupees, indicating an upside of 21% in next 12 months

** Says co gaining market share consistently in core portfolios, seeing accelerated growth in food and premium personal care segments

** Analysts avg rating on stock "buy", median PT 730 rupees, as per LSEG

** YTD, MRCO up 0.5% vs 6.7% losses in Nifty FMCG .NIFTYFMCG index

(Reporting by Vivek Kumar M)

((VivekKumar.M@thomsonreuters.com;))

Feb 6 (Reuters) - Solid demand in rural areas, as well as higher prices of staples including edible oil and wheat flour, helped the consumer goods sector report a 10.6% sales growth in the December quarter, market researcher NielsenIQ said on Thursday.

India's rural areas - which account for just over a third of consumer goods sales - have proven a bright spot for an industry struggling with an inflation-led spending slowdown in large cities.

"Rural markets (continued) to lead the charge, outpacing urban consumption (during the December quarter)," Roosevelt Dsouza, head of customer success for consumer goods at NielsenIQ, said in a statement.

Sales volume jumped 9.9% in rural areas in the December quarter, up from 5.7% in the previous quarter - double the 5% increase in urban centers, NielsenIQ said. But it added urban pockets also improved from the September quarter's 2.6% growth.

Rural areas have outperformed urban locations for the last four quarters, benefiting from income support schemes rolled out by several Indian states, while slowing salary increases in cities have squeezed consumer spending.

In the October-December quarter, overall volume rose by 7.1% - the highest in over a year - driven by demand for laundry products and edible oil, even as prices rose by 3.3%, according to NielsenIQ.

Dabur India DABU.NS and Hindustan Unilever HLL.NS reported a higher December-quarter profit on recovering rural demand.

However, large consumer goods makers, with topline exceeding 50 billion rupees ($571.2 million) are also facing stiff competition from smaller rivals, whose sales increased roughly twice as fast during the festive quarter, NielsenIQ said.

Consumer goods makers have also raised product prices to counter price increases in commodities such as copra and cocoa, with cooking oil maker Adani Wilmar ADAW.NS and Hindustan Unilever warning of further hikes.

Indians also preferred smaller product packs during the quarter, NielsenIQ said, echoing comments from Hindustan Unilever.

($1 = 87.5400 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Eileen Soreng)

((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))

Jan 31 (Reuters) - Indian consumer goods maker Marico MRCO.NS reported a smaller-than-expected quarterly profit on Friday, as higher raw material costs and marketing spends overshadowed price increases-led growth.

Rising prices of raw materials including copra and vegetable oil weighed on the Parachute coconut oil maker's profits, while the company also faces intense competition and continues to spend heavily on marketing and advertising.

Marico's expenses rose 17.7% to 23.18 billion rupees ($267.54 million) during the third quarter ended Dec. 31.

Consolidated net profit stood at 3.99 billion rupees ($46.05 million), compared to 3.83 billion rupees a year earlier. Analysts, on average, were expecting a profit of 4.02 billion rupees, according to data compiled by LSEG.

Revenue, however, came in at 27.94 billion rupees, up 15.4% from a year earlier, supported by improving demand in rural areas and product price increases.

Marico said it would raise prices of its products further to make up for an expected "firmness" in commodity prices, noting copra prices, up 38% this financial year, were ahead of its forecasts.

It also said its revenue would increase in the double-digit percentage range in the medium term by increasing its market share across its portfolio of brands.

Meanwhile, Dove soap maker and industry bellwether Hindustan Unilever HLL.NS reported below-expectation results last week and forecast margin pressures ahead.

($1 = 86.6400 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Shailesh Kuber)

((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))

Jan 27 (Reuters) - India's Adani Wilmar ADAW.NS reported a two-fold surge in third-quarter profit on Monday, buoyed by higher demand in its core edible oils segment.

The consumer goods company, which makes the Fortune brand of cooking oil, reported a consolidated net profit of 4.11 billion rupees ($47.56 million) for the quarter ended Dec. 31 from 2.01 billion rupees a year ago.

Shares rose 3% after the results.

Revenue from its core edible oils segment - which accounted for over 79% of total revenue - grew 38% during the quarter, driven by increased demand for sunflower and mustard oils.

The company said it recorded in 5% growth in volumes in the quarter.

Cooking oil has largely resisted the broader slowdown in branded consumer goods due to its essential nature, despite brands increasing prices in recent months to offset rising ingredient costs, as per analysts.

Expenses rose 30% due to a sharp rise in underlying commodity prices, driven by a hike in customs duty in mid-September.

Adani Wilmar's foods unit, which includes products such as soya chunks and basmati rice, recorded a 22% revenue growth, driven by increased demand from general trade and e-commerce channels, according to its quarterly update.

It reported a 31% increase in total revenue, hitting 168.59 billion rupees.

In late December, the Adani Group announced its exit from the consumer goods unit - which it owned in a joint venture with Singapore's Wilmar International WLIL.SI - selling its entire stake to its Singaporean partner and through the open market.

Rival Marico MRCO.NS said in its update it anticipated third-quarter revenue growth in the mid-teen percentage range, supported by improving rural consumption and stronger demand for its Parachute and Saffola oil brands.

($1 = 86.4250 Indian rupees)

(Reporting by Ashna Teresa Britto; Editing by Janane Venkatraman)

((AshnaTeresa.Britto@thomsonreuters.com;))

Jan 3 (Reuters) - Indian consumer goods firm Marico MRCO.NS on Friday estimated its consolidated quarterly revenue will rise in the mid-teen percentage range, boosted by improving rural consumption and higher demand for its Parachute and Saffola brands of oils.

Cooking oil has largely withstood a broader slowdown among branded consumer goods due to its essential nature, according to analysts, even as brands raised prices in recent months to make up for higher ingredient costs.

Analysts are expecting a 11.2% rise in consolidated revenue in the quarter, as per LSEG data.

The Parachute coconut oil brand has been "resilient" in terms of revenue, while Saffola has "held firm in volume terms", the company said.

However, Marico said it expects a higher-than-anticipated gross margin contraction on a year-on-year basis and modest operating profit growth for the third quarter ended Dec. 31 due to higher raw materials and expansion costs.

The update from Marico comes two months after it tipped its consolidated revenue to grow year-on-year in the double-digit percentage range between October and March.

However, sales in large cities are under pressure as consumers cut back on spending due to high costs of living. Marico CEO Saugata Gupta told Reuters in November that urban consumption would take at least six months to revive.

The urban segment accounted for about 30% of its domestic sales, as of June-end.

Marico's international business, which accounts for a quarter of its overall revenue, will report a mid-teen constant currency growth in revenue in the third quarter, the company said.

Gupta in November had said Marico was looking to expand in the United States and East Africa as well as enter Indonesia.

In 2024, Marico shares rose 16.6%, compared with a 0.3% fall in the Nifty consumer goods index .NIFTYFMCG.

(Reporting by Praveen Paramasivam and Meenakshi Maidas; Editing by Janane Venkatraman)

((Praveen.Paramasivam@thomsonreuters.com; +91 867-525-3569;))

Dec 18 (Reuters) - Marico Ltd MRCO.NS:

• APEX COURT DISMISSES COMMISSIONER OF CENTRAL EXCISE APPEAL

• INDIA APEX COURT UPHOLDS ORDER CLASSIFYING PURE COCONUT OIL AS EDIBLE OIL FOR LEVY OF DUTY

Source text: ID:nBSE6CfHpF

Further company coverage: MRCO.NS

((Reuters.Briefs@thomsonreuters.com;;))

By Dhwani Pandya

MUMBAI, Nov 14 (Reuters) - Indian consumer goods maker Marico MRCO.NS expects urban consumption will take at least six months to revive, its managing director told Reuters, signaling more pain for the sector from food inflation which has hit a 15-month high.

With a market cap of $9.12 billion, Marico is best known for its iconic coconut oil brand "Parachute" and edible oil brand "Saffola", and competes with the likes of Hindustan Unilever HLL.NS and Nestle NEST.NS.

India's annual inflation for food items, which account for nearly half of the consumption basket, hit a 15-month high of 10.87% in October, and retail inflation surged to a 14-month high in the same month, driven by a jump in vegetable prices and dashing hopes of an interest rate cut by the central bank next month.

"It will take a couple of quarters for urban consumption to revive. But I think once the food inflation is sorted out to a large extent, urban consumption is expected to recover," Marico Chief Executive Officer and Managing Director Saugata Gupta said in an interview in Mumbai.

"Whenever there is a food inflation, there is an impact on FMCG (fast moving consumer goods)...consumers either downgrade or titrate consumption," he added.

India's middle class, estimated to be a third of its 1.4 billion people, has been cutting spending due to higher food inflation, impacting the earnings of largest consumer goods firms.

Though consumption is mainly affected among the middle- and lower-income classes, there is not much impact on those with high incomes, Gupta said.

India has seen high luxury spending in recent months - German luxury car manufacturer Mercedes-Benz' car sales in India grew 13% in first nine months of this year, its best-everperformance, while sales of luxury apartments in country's top seven cities surged nearly 38% during that period.

Marico's international business contributes around 27% of consolidated revenue and it has a strong presence in Bangladesh, Vietnam and the Middle East, and is looking to expand operations in the United States and East Africa, as well as entering the Indonesian market, Gupta said.

In Bangladesh, where Marico has a distribution network of more than 770,000 outlets, the company's operations were briefly disrupted after violent student-led protests that led to the resignation of Prime Minister Sheikh Hasina in August.

Gupta said Bangladesh's share of Marico's international revenues dropped from 44% in the year ended March 2024 to under 40% now, and could fall further as its grows more in other geographies.

(Reporting by Dhwani Pandya; Editing by Aditya Kalra and Ros Russell)

((dhwani.p@thomsonreuters.com;))

India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

Nov 12 - By Ira Dugal, Editor Financial News, with global Reuters staff.

Hello, I'm Ira Dugal and I head financial news for Reuters in India. Join me each Tuesday as I lead you through the biggest stories out of India, and Asia.

Indian corporations have reported weaker-than-expected earnings for the July-September quarter. Are corporate report cards signalling a slowdown in the world's fastest growing major economy? That's our focus this week.

What does Donald Trump's return to the White House mean for emerging markets? Scroll down for "Market matters".

THIS WEEK IN ASIA

** China unveils $1.4 trillion local debt package but no direct stimulus

** Putin signs into law mutual defence treaty with North Korea

** Toyota aims to ramp up China production

** Pakistan limits outdoor activities, market hours to curb air pollution-related illness

A GROWTH SPEED BUMP

Big names in Indian consumer goods, including Hindustan Unilever and Nestle India, were arguably the top disappointments during the past month's quarterly earnings season, when negative surprises and foreign investor selling drove the benchmark Nifty 50 down 6.2% for October - its steepest monthly drop in four-and-a-half years.

That wasn't just bad news for the companies' share prices. It rattled investors with a warning that India's burgeoning urban middle class - a key force driving the world's fastest growing major economy - were reining in spending on goods from soap to shampoo to biscuits and tea.

That could be a harbinger of unwelcome change for an economy accustomed to rapid growth, which reached 8.2% in the last financial year and is forecast to remain above 7% this year.

So far, analysts are seeing the slowdown at least partly as cyclical, a normal reaction after a period of strong growth, rather than as a sign of flagging demand. But they also point to inflation, seen hitting a 14-month high in October on higher food prices, as a more stubborn problem that is eroding urban spending power.

Whether the slowdown worsens or stabilises depends on the strength of rural demand, after a strong monsoon and recent easing of farm policies, as well as the pace of government spending and a possible easing of interest rates by the central bank, which has also loosened its grip on liquidity.

The starkest earnings underperformance was among consumer goods firms, especially those that sell daily-use products to the urban middle class.

Urban Indians, who account for more than one-third of the world's most populous nation, spend 71% more than their rural counterparts, according to monthly consumption data. Consumption comprises 60% of India's GDP.

Nestle India Chairman Suresh Narayan said the market was clearly facing muted demand, as well as pressure from inflation. "Food inflation has been a cause of concern due to sharp uptick in prices of fruits and vegetables and (edible) oil," he told reporters after the company's earnings release.

He noted that growth in the food and beverage sector, in double-digits just a couple quarters ago, is now down to 1.5-2%.

Analysts linked the slower spending growth to a decline in disposable incomes.

India economists at Citi note that growth in inflation-adjusted wage costs for listed Indian firms - a proxy for urban dwellers' earnings - has held below 2% for all three quarters of calendar 2024, and well below the 10-year average of 4.4%.

Not all the earnings news was bad. Colgate Palmolive reported stronger demand from rural areas, while Marico, which sells cooking oil brands popular with rural consumers, said it expects double-digit revenue growth in the second half of the financial year.

Sales of high-end goods also proved resilient. In the auto sector, Mahindra & Mahindra, which sells popular sports utility vehicles, outperformed earnings expectations, although Maruti, with a wider portfolio that includes entry-level cars, was more vulnerable to sluggish demand.

All in all, analysts and economists see the latest quarterly earnings as more bad news than good.

Jefferies India downgraded full-year earnings estimates for 63% of the 121 large companies it covers, the highest downgrade ratio since 2020, when the COVID-19 crisis hit. It attributed that to a cyclical slowdown in the economy.

For the full year, Barclays has lowered its forecast for GDP growth to 6.8% from 7%.

Will growth continue to slip in the second half of the financial year, or will it stabilise? Write to me with your views at ira.dugal@thomsonreuters.com.

QUOTE OF THE WEEK

"I look forward to renewing our collaboration to further strengthen the India-U.S. Comprehensive Global and Strategic Partnership. Together, let's work for the betterment of our people and to promote global peace, stability and prosperity."

Indian Prime Minister Narendra Modi congratulated Republican Donald Trump on Wednesday after he won the U.S. presidential election.

With Trump's win, India is open to freeing up market access for U.S. firms, sources told Reuters.

MARKET MATTERS

Investors hoping for a "Goldilocks" moment for emerging markets in 2025 are facing significant uncertainty after the U.S. presidential elections.

The dollar's rigorous rally, higher bond yields and the prospect of the Federal Reserve slowing the pace of interest rate cuts weighed on emerging market currencies.

Asia could be surprisingly resilient in the face of this increased uncertainty. Investors may also look for safety in Indian assets, given its domestically focused economy.

(By Ira Dugal; Editing by Edmund Klamann)

** Shares of Marico MRCO.NS rise 7.1% to 673.7 rupees, eyeing best one-day pct gain since May 7

** Stock top gainer on Nifty FMCG index .NIFTYFMCG, which is one of two main indexes trading higher, while remaining 11 are in the red

** The consumer goods maker posted ~20% rise in Q2 profit, ahead of analysts' average estimates

** Q2 revenue growth led by price hikes to offset higher raw material prices

** Twenty-five analysts covering the stock on avg have a "buy" rating; median PT is 717.5 rupees - LSEG data

** Stock up 23% so far this year vs a 0.9% rise in .NIFTYFMCG

(Reporting by Ashna Teresa Britto in Bengaluru)

((AshnaTeresa.Britto@thomsonreuters.com ; ( +91 8078332441))