Marico's Saffola ready to shed low-margin volumes
MUMBAI, Nov. 3 -- Marico Ltd is willing to sacrifice volumes in the lower-margin end of its Saffola edible oil business to improve profitability, as the maker of fast moving consumer goods shifts its focus towards premium products such as cold-pressed oils.
The strategy marks a deliberate move away from chasing volumes in a category exposed to volatile input costs and intense price competition. Marico expects the shift to reset the business's profitability over the next few quarters.
"We have taken a conscious call to say that we shall forego and sacrifice volumes at the bottom end, which is a low margin end of our business. We believe in the next 2-3 quarters there'll be a complete reset that will actually help in the overall long-term...
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