After launching men’s grooming products early this year, Marico now enters into the instant soup category in India: Bonafide Research

Marico enters into the instant soup category in India by launching Saffola soups. The company launched it to drive its growth further into the Indian market. Also, Marico has acquired a 45% stake in Beardo early this year, a men’s grooming brand that sells beard oils, beard waxes, soaps, and other grooming products for men’s facial hair.
According to the recently published report of Bonafide Research “India Instant Noodles, Pasta & Soup Market Outlook, 2021” the soup market is anticipated to grow at more than 22% CAGR from 2016 to 2021. The Indian market for soups is primarily driven by increasing urbanization, rising incomes, and heavy marketing by players. The penetration of soup is less than 5% in India which stands significantly lower than in other western countries.
FMCG major Marico Limited was looking at food, a ‘healthy’ food – especially the in-between snacking segment, as one of its growth drivers this fiscal. As a result, Marico entered into the soup segment, which is dominated by Hindustan Unilever and Nestle India, by starting to sell Saffola soups. The prospects are strong in the soup category, so it will be an uphill task for the company to make inroads into the market. Saffola soups will be the latest addition to its health foods business and follow the recent launch of meal-replacement slimming shakes, also under the Saffola brand. The move is a part of its strategy to launch healthy, in-between snacks and at the same time, add premium products to its portfolio as it targets a 70% increase in revenue to Rs 10,000 crore by 2020.
The company has created a new business team, internally called Engine 2, which will help create and incubate new categories including healthy foods, nutraceuticals, male grooming, and other personal care products. In foods, Marico will enter in-between healthy foods that will benefit heart health and weight management, which Saffola caters to. In fact, Saffola Active soups have five times more fiber and are much healthier than other brands. Marico quit the crowded trader’s lane on Masjid Bunder in Mumbai more than 45 years ago with an ambition to make two highly commoditized products — edible and coconut oil — national brands. Today, Parachute and Saffola are among the biggest oil brands in the country, although their contribution to Marico’s overall sales is below half now. Earlier this year, Marico has announced the launch of Saffola Aura, a new sub-brand under its marquee brand Saffola. Saffola Aura marks the entry of Marico in the Rs 600+ crore super-premium edible oils category.
Within personal care, Marico has been introducing premium products, from basic coconut oil to value-added ones, and now expects innovations such as serum and cream-based hair products to drive the portfolio. The quest for other growth options has led Marico to pursue opportunities in health & wellness and male grooming categories, which are underpenetrated, and if Marico succeeds, it could potentially offer growth and margins to the company that can compensate for the lack of growth in the core Parachute portfolio. Marico bought personal care brands, including Set Wet, Livon, and Zatak from Reckitt Benckiser five years ago. In March, Marico bought a 45% stake in Zed Lifestyle, which owns and sells a range of products under the ‘Beardo’ brand in categories such as oil, wax, and balm for beards as well as scalp, hair, face, and skin products. One of the biggest drivers for male grooming products has been e-commerce and the Beardo model is exactly based on that. This will provide Marico a good amount of opportunity.
MAJOR COMPANIES
Major companies operating in the instant noodles, pasta & soup market of India are Nestle India Private Limited, Hindustan Unilever Limited, Bambino Agro Industries Limited, ITC Limited, Capital Foods Private Limited, CG Foods India Private Limited, Indo Nissin Foods Limited, MTR Foods Private Limited, Patanjali Ayurved Limited and Favorite Limited.