Marico Ltd (NSE: MARICO) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Saugata Gupta — Managing Director, Chief Executive Officer
Pawan Agrawal — Group Chief Financial Officer
Analysts:
Abneesh Roy — Analyst
Latika Chopra — Analyst
Percy Panthaki — Analyst
Harit Kapoor. — Analyst
Akshay Krishnan — Analyst
Nitin Gupta — Analyst
Mihir Shah — Analyst
Anurag Dayal — Analyst
Vaishnavi Gurung — Analyst
Presentation:
operator
Ladies and gentlemen, please stay connected. The conference call for Marico Limited will begin in next few minutes. Thank you. Ladies and gentlemen, you’re connected for the conference call of Marico Limited. Please stay on the line. The call will begin in next few minutes. Ladies and gentlemen, good day and welcome to Marico Limited’s conference call. We have with us the senior management of Marico, represented by Mr. Sagata Gupta, MD, and CEO and Mr. Pawan Agrawal Group, CFO and CEO International Business. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown phone. Before we get started, I would like to remind you that the Q and A session is only for institutional investors and analysts. And therefore if there is anybody else who is not an institutional investor or analyst but would like to ask questions, please directly reach out to Marico’s investor relations team. I now hand the conference over to Mr. Saugata Gupta. Thank you. And over to you, sir.
Saugata Gupta — Managing Director, Chief Executive Officer
Yeah. Good afternoon and thank you for joining us once again. I think it’s been a short period of time, so let me begin by setting the context for this call and sharing our perspective on the recent strategic investments we have made in India and Vietnam and how these fit into our big picture aspiration to structurally diversify the business beyond the core in India and the international markets. We have also published a detailed deck earlier today. Trust you have had a chance to go through the same. We believe Marico is at an inflection point transforming from a legacy FNPCG incumbent into a scaled profitable Digital first consumer powerhouse.
And this deck outlines how we are building a portfolio which is profitable Digital first franchise in India and international markets anchored in strong brands, disciplined execution and a repeatable playbook for growth that has already delivered demonstrable successes in some of the brands. Taking a step back, if you look at what we have consistently held us in good stead over the years, it would be our ability to spot opportunities early while anticipating and mitigating future risks of growth. For instance, the digital imperative in India and Vietnam is unmistakable in view of the exponential growth in Internet penetration and e commerce adoption.
Saugata Gupta — Managing Director, Chief Executive Officer
And we realize that we must seize this moment decisively since these trends are structurally reshaping consumer behavior. Marico is strategically positioned itself to capture this opportunity. Our vision rests on five strategic pillars, namely evidence based acquisitions, profitable scale up via operational discipline, synergy acceleration, prudent capital allocation and a repeatable playbook. Speaking of the recent acquisitions in particular, each of these are designed to fill white spaces, leverage Marico’s distribution and supply chain strengths and accelerate growth through digital first engagement. We are building across what we call the Digital Chessboard which spans three strategic domains Digital Foods, Digital Personal Care and global digital brands in foods.
Our portfolio now spans for mainstream health and wellness with Sapola Clean label and modern breakfast and snacking with True Elements Premium snacking which is indulgent but better for you with 4700 BC and Functional Nutrition with Cosmics and Plix. 4700 BC gives us immediate entry into the fast growing 24,000 crore Western Snacking Market and it elevates it through gourmet offerings. Already the number two player in popcorn with 140 crore run rate, 4700700 BC fills a critical white space in our foods portfolio. The brand’s goal is to scale beyond popcorn with nachos, pop chips and Fox Nuts being few steps in that direction.
There are interesting examples of such brands in the western developed markets and we will draw inspiration from them. Cosmics is a brand with proven D2C economics which strengthens our participation in a functional wellness space. With a 100 crore run rate and a high teen EBITDA margin, Cosmics addresses a pressing consumer need. 73% of Indians and 90% of vegetarian are protein deficient and taps into the growing preference for gut friendly plant proteins. This brand is well positioned to scale into nutraceutical supplements and functional foods. In personal care we are driving thoughtful premiumization. Beardo leads Male grooming Plix scaling plant based personal care which is hair and skin food.
Saugata Gupta — Managing Director, Chief Executive Officer
Kaya offers dermatologist backed solutions and just Herbs elevates Ayurveda inspired beauty. Each brand is positioned to capture distinct demand spaces from self expression to science based or clinical efficacy. Internationally we aim to replicate this playbook in high growth markets such as Vietnam and certain countries in the Middle East. In Vietnam, Candid, which is roughly 2/3 of skintech’s business is scaling rapidly in this science based skin care segment with a mid premium positioning in Vietnam. It exemplifies how a high quality product first brand combined with social commerce leadership can deliver superior unit economics. Given its mid-20s EBITDA in the Middle east, we will aim to tap markets like the UAE or KSA which are amongst the highest smartphone penetration markets globally.
Our ambition is to build leadership in digital beauty and grooming across these focused emerging markets. Now with our sizable digital portfolio we also have a strong platform to build digital brands organically. We have already launched men’s and women’s personal career brands in Vietnam, namely Astroman and Lachi gaining first mover advantage since Vietnam and Middle east are relatively nascent in their D2C journey. This positions us as one of the very few companies perhaps globally that is building digital brands both organically and inorganically at scale. Looking ahead, our strategy outlook is ambitious yet disciplined. We are targeting 3 to 3.5x revenue growth in these digital acquisitions by FY30 the focus will be on category expansion driver or sustaining profitability through scale synergies and leveraging Marico’s platform to accelerate penetration and operational efficiencies.
Beardo and Plix are powerful proof points of our model. Beardo has scaled 5x post acquisition which is 100% into the Marico fold in 2020 with a visible transformation in EBITDA margins. Plix has grown 6x in just two years and is on track to deliver double digit margins in the next 12 to 15 months. These success stories validate our disciplined, synergy driven approach to acquisition. Plix is also a rare example of a brand that pivoted seamlessly from nutraceuticals into hair and skin food, substantially enhancing its growth journey and the profitable profile. The conclusion of recent investments in quick succession has been nothing but a result of strategic convergence and our deliberate choice to move with speed, ensuring we avoided any FOMO led premium in valuation and secure assets at attractive valuations.
Saugata Gupta — Managing Director, Chief Executive Officer
Our inorganic approach is clear. We screen for product market fit, category attractiveness with right to win that cannot be attributed to our existing franchises, healthy unit economics, founder mentality with build to last as opposed to build to sell and scalability of the business. This ensures we create value while maintaining discipline. Also, we are now cherry picking profitable brands with a minimum 100 to 150 crore scale, an inflection point at which we can rapidly grow them 4 to 5x without the burden of losses. We have been able to pull this out because of Marico’s culture of agility, openness, willingness and humility to learn from founders.
Also, now that we have two distinct and comprehensive portfolio of brands in foods and premium personal care, there is tremendous potential to unlock operational and cost synergies across multiple dimensions including gtm, CRM, first party data manufacturing capabilities, back end supply chain media buying and content creation to name a few. Therefore, when we recalibrate our near and medium term aspirations around diversification through new businesses and profitability of the digital first portfolio, we expect material progress on all counts. We expect food revenue to reach 9x of FY20 levels next year and 15x by FY30. Digital first PPC annual run rate is expected to be 5x of FY24 levels and EBITDA margin of the portfolio is expected to be in teens in FY30.
This would take the share of new businesses in India revenues from to about 33% in FY30, illustrating the structural and strategic metamorphosis that would have come about in the business. We expect all digital brands globally to collectively clock at least around a top line of 4000 crores in FY30. To summarize, Mavico is not just participating in the digital consumer revolution, we are shaping it. With strong brand equity, operational muscle and a proven playbook, we are confident of delivering sustainable, profitable growth in the years ahead. We are building the next decade’s growth engines Digital first premium and globally scalable in multiple markets without compromising our DNA of disciplined value creation.
Thank you and we will now be happy to take questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take our first question from the line of Abnesh Roy from Nuama. Please go ahead.
Abneesh Roy
Yeah, thanks. Congrats on fantastic portfolio transformation. My first question is on Vietnam. Vietnam is around 20 25% of international business and I think around 5 to 6% with the console. Is there a thought process that over the next five years 2030 targets you are given you want Vietnam to be even more salient within the international and any chance that this anti aging hydration and anti acne at some stage you will bring some of these into your other markets. Even Bangladesh, India also. Any thought process on that?
Saugata Gupta
So I think there are two things we have been doing in the international business. Reducing concentration risk in terms of country as well as portfolio. If you look at the share of the premium business has been going up drastically and we are participating in premium personal care categories like shampoo, baby and body care successfully across multiple markets. I think Vietnam is a very very stable country with high growth opportunities, significant amount of Internet and penetration. We believe that the organized trade which is E Comm. Modern trade contribution to be ahead of India in the next couple of years including E Commerce which is very big, including social commerce using TikTok and therefore we want obviously to invest in this country and continue to do tuck in because we have created capability.
Yes, you are right, we can think of looking at it. But even there are opportunities to now have a E commerce or a digital play in adjacent countries of Southeast Asia. Also with this portfolio. See this product is also inspired by K Beauty and we also have a similar portfolio like A Kaya in India. So therefore there is obvious chance of replicating and cross learning in terms of chassis and product formulation. And as you know, K Beauty is also quite a trend in India.
Abneesh Roy
Sure. Second question was on the 2030 target. If I see those targets over the next four year workout to 3 to 3.5 for 4700 cosmic and candidates. Now the size of these three are pretty small. When I compare to your other equations and even say maritime those overall sales. Because when I see the kind of scale up you have done in Beardo 5x and click 6x of course the time periods are different but from a 4 years perspective taking a 100 crore brand or 140 crore brand 3X is this quite conservative? Is this. Are you seeing some challenges here? Because versus your own performance and versus the 100 to 140 crore size, this looks very conservative conservative to me.
Saugata Gupta
See as a culturally as a company we first do and then say as opposed to saying and doing. And therefore I think this is a base case. When I talked about Beardo I would have given you a much lower number and a Plix. I think this is something which is a base case which will beat our acquisition assumptions. Obviously in the case of Beardo and Plix it has overtaken those assumptions by a mile. But these are the starting assumptions and we will see and especially 4700 BC which has a 24,000 crore TAM. You’re absolutely right Abneesh that we can do much better.
But we have to get the thing right and get into a profitable sustainable growth cycle which is very very critical.
Abneesh Roy
Last question. So when I see Plix and when I see Cosmic they seem fairly adjacent in terms of product portfolio. So Plix is basically nutraceuticals therants in food. Fantastic scale up. Was there a thought process that we can do plant protein, plant functional foods even in Plix because costly the size is 100 crores build versus buy. I wanted to understand that better because see so many brands and you always say that fewer bigger beds plus advertising budget to each brand. Was there possibility that you could have done this in clicks also these products?
Saugata Gupta
Okay, so if you look at Plix today the center of gravity has moved into a beauty and personal care because you know, hair and skin food and even in nutraceuticals it is a slightly fun brand. Fun and vibrancy. If you look at the way the branding are, colors are. I think what Cosmixis does is I think there is a serious movement and we needed an offering towards the vegan vegetarian, this one and serious nutrition and well being. So you will see the divergence between the positioning of the brands and therefore Cosmics will focus on nutraceuticals and getting into spaces like other nutraceutical spaces which are there, which I have been talking about.
It could be gut health, it could be sleep, it could be stress, it could be there are different. And you will see that coming. For example, it could be even. And you must realize in India today, a significant portion of the population with high purchasing power wants vegetarian and vegan options. And vegan is a big trend at the top of pyramid. So therefore Cosmics is going to specialize this one. Because we realize that the center of gravity of Plics has moved to a lot of hair and skin food and personal care. We needed a brand in this space.
The approach has been very simple. Plot all the adjacencies which have significant Runway for growth and ensure that there is a brand that fits snugly into that position.
Abneesh Roy
One last follow, Savatha. Given your targets are almost the Same for all 3.3to 3.5 broadly, given the kind of success Blix has seen 6x within 2 years or 3 years, will it be fair to say that the most conservative target is for Cosmics out of these three?
Saugata Gupta
I would think 4700 busi because of the different vectors of growth. Okay, sure.
Abneesh Roy
Understood. Thank you.
operator
Thank you. Next question is from the line of Latika Chopra from JP Morgan. Please go ahead.
Latika Chopra
Yeah. Hi, Sagata and Pawan. The first question was, you know, regarding the Indian acquisitions. You know, both the brands that you bought 4700 BC and cosmetics. They derive fairly high revenue from the key product. Popcorns is about 75% and protein powders is about 95% which of course established these brands with a high consumer recall. How do you think about the other emerging parts of these brands to scale up and salience to look like perhaps you could share some color on how this journey happened for clicks and Beardo and any learnings from there. Thank you.
Saugata Gupta
I think there are two, three things. One is as you move first you need to have a certain core and a hero skills even in the case of Beardo for example, we looked at one issue that suppose beard becomes a fad and within two years we started the diversification process in terms of getting into things which are adjacent, which are profitable and which is in line with the brand equity. As you know, Beardo is the so called Harley Davidson of male grooming. Now cosmics, while it started with plant protein powder, it has already gone into protein bars.
Tomorrow there are enough opportunities in other nutraceutical spaces and you will see some of the launches. It has also got a pancake mix and you will see some of the launches that are coming very soon. What we want to do is a one stop shop for people who believe in vegetarian, plant and vegan across nutraceuticals. For example, hypothetically, some people don’t like fish oil, you know, in nutraceuticals like Omega 3. Can I give them an option? I mean so and therefore there would be some similar approach of, you know, which we’ll follow. Now similarly, for as far as 470 BC is concerned, I think we have already gone into nachos, there are pop chips and that opportunity is huge, in fact humongous which is there in 470 BC.
And also the good thing about 4700 BC is that because of the institutional clientele across premium passengers of a lot of foreign airlines, Air India as well as things like Vande Bharat, we are getting an opportunity to do a lot of force trials like what Paperboard did with Indigo. So that opportunity, and this is with a very premium set of audience and I think we want to participate in significant areas of snacking as an option and you will see that playing out over the next. We have looked at the innovation cycle when we acquired these brands over the next 12 months.
And the other interesting thing is that which will aid the journey of 4700 BC is the manufacturing capability and the supply chain capability of Marico. As you know, food gross margins are slightly lower compared to premium personal care and therefore cost structure, sourcing, manufacturing and that is where the entire Marico weight can give a significant competitive advantage.
Saugata Gupta
And if I would just add Latika, this let’s say about cosmics, it’s just not a protein brand. It’s establishing itself into a comprehensive wellness brand and therefore the opportunity is pretty large. For example, if I just talk about vitamins, mineral and supplement space, that itself is about 11,000 crores. If we have to extend into multiple other categories, I think the opportunity is pretty large and, and that’s exactly what we have done with let’s say Beardo or a plex where we started with one particular category but really expanded into multiple other adjacent categories. So we don’t really think that the opportunity is limited to the category where it is participating at this point in time, but it definitely has legs to travel to a lot of adjacent categories.
Latika Chopra
But at the same time we don’t believe in spray and pray. So therefore we will get scale in categories, win and then move to multiple categories. But we don’t want to launch in 15 categories. I don’t have anybody to sell to. Understood? No, that’s very helpful.
Saugata Gupta
I think just probably you partly answered it. But on 4700 BC if possible to share any color on what could be the potential margin levels at a scaled up level or what you have, you know, say by Fi30 since you have talked about, you know, a revenue target. Because I’m not sure if this brand is EBITDA positive. It could be because of the institutional sales mix being high and also the manufacturing bit that you alluded to. If you could give us some more color on this. Thank you.
Saugata Gupta
So as of now it is an EBITDA bleed and hopefully in the next 12 to 18 months we are targeting to become EBITDA positive and that is one of the reasons we are not looking at making it 6x7x because we believe in scaling up profitably. So therefore in the next three years when we are talking about 3.5x we are also equally mindful about the fact that we have to make it EBITDA positive in the next, as I said 12 to 18 months and then of course move into a at least mid to high single digit EBITDA in the next three years.
So that’s how we are looking at this business. Of course other two businesses are definitely at a much higher profitability scale at this point itself.
Latika Chopra
Understood. Thank you so much and all the best. Thank you.
operator
Thank you. Next question is from the line of Parsi Pantaki from IIFL Securities. Please go ahead.
Percy Panthaki
Hi, just one clarification. I’m looking at slide 27 in which you have given the EBITDA margins for the digital first PPC business. But can you also give some idea on EBITDA margins for the food business please over the same timelines.
Saugata Gupta
So see basically foods it includes, when we talk about foods from a diversification standpoint, it also includes the core foods portfolio as well which is sapola, masala, oats plus honey, soya, etc. Where depending on what scale we’re talking about. For example masala oats is already making company operating margin. So once those different portfolio reaches a scale of 200 to 50 crores, we believe that it has a potential of making double digit operating margin and as it scales further can of course reach to company operating margin. Why we are calling out Digital First PPC brands separately because these are newer businesses and there we had committed that we will move to about double digit operating margin by 27 which we have a fairly good visibility about.
And of course over the next three to four years we can move to team seven to one.
Percy Panthaki
So I think to just clarify, if I take the composite blended foods it will be higher. So. So by FY30 would would we be able to do the similar kind of margins in foods as we have a target for Digital first ppc?
Saugata Gupta
Yeah, I said it will be higher. Blended margin of even in FY30 with the new businesses. Yeah, yeah, yeah. Include which includes the Fola core. Yes, it will be higher.
Percy Panthaki
Understood, understood. Secondly, just wanted to understand your framework for selecting which companies to acquire. How do you go about it? And second part to that question is that do you think you would need any more acquisitions over the next three to four years or now? More or less you think that your portfolio is complete? Definitely not in the next three weeks because my team needs rest and relaxation. They have been very busy.
Saugata Gupta
But we will look into tuck ins and maybe very few spaces. But I think more or less at least the food chessboard is complete. Now if there are opportunities in mass foods there could be opportunities in mass foods as I said obviously in global like in a country like Vietnam, Middle east if there is play, yes. And maybe again tuck in opportunities in personal care. But yes, I think we have done a majority of it. We also wanted to hurry it because of two things. We don’t want the FOMO premium to set in. We don’t like paying 6x7x in multiples and secondly once we have all the three it’s much more easier to synergize and get the cost advantages like say for example can cosmic true elements and 4700 BC and four have a common food GTN.
Those are the kind of synergies we now have critical mass to do. So coming back to your first question, I think what we look at, I think we had already cherry picked broadly the categories. Then we look at the business. I think we now have a complete playbook and analytics. Playbook on quality of revenue, quality of the founders, the kind of the headroom for top line growth. Headroom for bottom line growth Synergies with Marico. So I think we look at these and for example, for every company we have chosen we have also deselected certain things at the same point in time.
So it starts with the category we want to get into and then look at the companies and we obviously and things where you are not adjacency or not no right to win. Say for example I can’t win in pet care if something in yogurt or ice creams is available. I can’t this because I don’t have a right to win. It is not an I will not get into it.
Percy Panthaki
Understood. And in terms of the two big spaces which is foods and digital ppc there are subcategories. Do you think that you are already in all the subcategories that you want to be or are there some categories of interest which are still unoccupied by you? You need not name them but just wanted to understand.
Saugata Gupta
So we are constantly looking at trends. See if you look at their history of digital and food is because we believe that our core has a certain amount of penetration and if we have to consistently grow in double digits we need to diversify. So we will look at trends and adjacent trends or something picks up. We believe that it is something worth picking up. We will do that. So we are continuously looking at. So what we need to do is our mix of countries into category. We need to have a majority of our portfolios as a tailwind as opposed to headwind and that’s the formula which we are looking at.
Percy Panthaki
But as of today there is no subcategory where you feel oh this is really somewhere I need to be and I’m not there as of today could.
Saugata Gupta
Be some tuck in opportunities but we are largely filled up my checkboard this.
Pawan Agrawal
On the digital food side we are pretty content so to say maybe in the digital on the personal care we could still be open as Shogun mentioned in mass categories. Of course you could be open like.
Saugata Gupta
Mass categories we open and of course in digital in some of the countries of interest for us we are open.
Percy Panthaki
Got it, got it. That’s all
Saugata Gupta
from having said that just to also address the thing that in Vietnam we are doing a unique experiment with two brands, Astroman and Lashi because we are going to use the platform which is available as you know Vietnam is a very high social commerce market and one of the co founder is one of the biggest blogger and influencer in Vietnam. So I think we are also looking using this platform to do organically need not be always everything inorganic similarly in Middle East, I think some of the food brands has enough potential.
Percy Panthaki
Got it. Sagatha, thanks so much.
operator
Thank you. Next question is from the line of Hareet Kapoor from Investec. Please go ahead.
Harit Kapoor.
Yeah. Hi, good afternoon. So just had two questions. One was, you know, is there any incremental investment you need to make in team scale up also, you know, as you’ve rapidly kind of expanded into new categories, new build businesses, new brands. I know that some of these basis milestone will still be with you in terms of old founders, but do you see that investment required in terms of team people, etc. As well? That’s my first question.
Saugata Gupta
So I think we are doing some centralized capability. It could be helping on. So to give an analogy, can we have people who learn from these businesses and take up these businesses? Because what we do is one year before we take over, we start implanting people. We have a central team that helps and I can give you analogy. Just like operating partners in PE help, we have people who are providing that service. I spend personally a lot of time in the digital businesses because I believe this is a high growth this one. And there is a centralized team of people which are centers of excellence from Americo, this one to help.
And obviously in that we are also, you know, what I call shaping up our own capability of doing high velocity supply chain. Because all the things which are things like supply chain, things like content, all these capabilities which we are also building, starting to build in house.
Harit Kapoor.
Got it, got it. Good. And the second one was it seems like obviously you’ve done three fairly quickly. I just wanted to get your sense of the market. Is there a more motivated kind of seller or you know, a more motivated founder there now, you know, with a more rational multiple environment here, you know, it’s not only you, you’ve seen, you know, some other companies also close acquisitions recently. Obviously you have, you have done it at a larger scale and pace. But just wanted to get your sense is it a more conducive market to buy is what my question was.
Saugata Gupta
I think I would look at it that we are a strategic founder of strategic partner of choice in terms of our ability to partner the founder into realizing his dreams and participate in this one jointly. And therefore, if you ask me, we have continued to make these at far more rational valuations. I read about something happened yesterday also. So I think secondly, I would think that we also I think the synergy which we provide in terms of as a bouquet of service, whether it works to cost to procurement or even say digital media buying so when we buy, say through Meta or Google, in terms of all the brands, including Marico, core brands, access to modern trade, access to gt, those are the things which is I think mutually beneficial for both the founders and us in terms of having this model.
I think this model is unique and this model can only work if culturally the organization is tuned to this model which is leaving the founders some space because we have a significant empowered culture in our organization.
Harit Kapoor.
Very clear. Thank you. Wish you all the best.
operator
Thank you. Before we take the next question, would like to remind participants to ask a question. Please press N1 on your phone. Next question is from the line of Akshay Krishnan from ICICI Securities. Please go ahead.
Akshay Krishnan
Hi King. So look at the playbook. We emphasize more on retaining the founder’s DNA. Now how do we prevent the cultural frictions while still enforcing Marico’s operation discipline and the governance standards? I just want to understand the overall framework.
Saugata Gupta
Obviously we have a point of view on the portfolio. We have point of view on the, you know, the governance, the regulatory, the quality, reputation. I think we learn with the founders and if you notice, I think we have been also entrepreneurial and if you look at Beardo, BEARDO we integrated 100%, we bought in 2020. This still the mojo and the secret sauce of Virgo we have been able to preserve. And therefore those three years are learning, you know, for all of us to understand the unique thing. Obviously as I said, these four, five things which is capital, the allocation of capital, portfolio, you know, compliance, gmp, those are non negotiable.
Akshay Krishnan
Second question is on when we it’s on prioritizing adjacency like expansion within the existing categories or entering completely into new verticals. So what are the strategic fillers that determine you on the adjacency versus white spaces and also on the expansion.
Saugata Gupta
I think it’s the headroom for growth and a right to win at the same time. We believe in focus and therefore if you look at all the brands which you are acquiring, they have significant amount of hero skus or proven skus. We don’t believe in spraying and paying even we are being prudent enough into going into gt. We have I think a broad playbook into GT that only if there’s a scale and have a limited amount of SKUs. So I think it’s a broad this one. But you must realize the good thing we have is that the business model allows us to continuously experiment.
So you keep on experimenting. You start small, either scale up or drop fast.
Akshay Krishnan
Okay, okay, but how do you determine this white space and what is the time frame that you generally take up to determine this white spaces?
Saugata Gupta
See, it is a continuous process because there’s a lot of social listening in today’s world. As I said that it’s a very high velocity innovation. Just to give you an example, innovation cycle can be 60 to 90 days in this digital brand. In Matico it can be anything between eight to 12 months. So it’s a very, very compressed low. I mean we don’t have MOQs in this. You just put in, experiment with one partner in Q commerce or in E Commerce, see if it works. Or in D2C there are action standards, whether with respect to repeats, trials, the kind of reviews you get and determine that within 90 days or 20 days you scale up or you drop.
Akshay Krishnan
Perfect. And one final thing now, now on the digital first playbook, India and Vietnam has really played up well for us. And what’s the structural difference in Indonesia and how could this alter the unit economics? Is it on the consumer behavior or the platform?
Saugata Gupta
No, no. I gave you a hypothetical example that if there is a E. Com and it’s not that I’m saying I’m joining going into Indonesia, I said that I think that was, it was a response to the question that can the Vietnam thing be replicated in other countries. I talked about that. See a traditional GTM obviously has a lot of entry barriers. A digital ecosystem has less entry barriers. You can experiment in a country and entry into a country. So I gave it as a hypothetical example.
Akshay Krishnan
And one final thing sir. So I just wanted to understand and dissect between the CAC and the SDV evolving in the competitive intensity. Is the incremental growth coming more on the relative early stage growth or is it more on the expansion spring?
Saugata Gupta
If you notice most of our businesses including plates and say this cosmics has a significant D2C play which has therefore high amount of repeat users and a loyal user D2C base and a profitable D2C play. Now obviously food is a far more flirtatious category based on taste and far more experimental category doesn’t have a D2C play but our LTV by CAC and repeat rates for both these businesses where there is high D2C is pretty high and best in class.
Akshay Krishnan
And how will this improve the margins and the earnings momentum? I didn’t get your question. Margins, margins and the earnings momentum. So what will be the uplift into this?
Saugata Gupta
We have given the response I think we have done. Beardo now makes double digit EBITDA we are there are enough things there, enough on cost, there are recos in improving roax, there are net revenue management, there are multiple levers in play to drive the margins. Also a lot of stuff on the back end side with the supply chain, logistics, procurement, for example, we have taken in house some of the products of Beardo and the gross margin has got significantly uplifted. So there’ll be time when you would deploy some of these things and therefore we’re very confident of the margin guidance that we’ve given of double digit in the next year and hopefully in teams over the next three or four years.
Akshay Krishnan
And that’s it from my good luck and all of this. Thank you. Thank you. Thank you.
operator
Thank you. Next question is from the line of Nitin Gupta from MK Global. Please go ahead.
Nitin Gupta
Yeah, thanks for taking my questions. First question is around like I want to understand the thought process around management bandwidth. So far it has been creeping acquisition where the founders have stayed with us and sort of helped grow the brand. Now as we sort of gain 100% ownership of some of the brands, how are you getting prepared for the management transition?
Abneesh Roy
So I think we have only integrated so far just herbs, clicks and true elements. We have obviously leaders managing those businesses. There is still a time away including some of the brands which you have just acquired. Three years to go. And as and when we have an evolving digital business structure and we have to ensure that we have dedicated people already helping these businesses grow. And therefore there’s a separate. It almost runs as I call Marico 2.0 engine 2. So therefore there is no overlap of management bandwidth. Perhaps the only overlap is me and some of the one or two EXCOMM members but hardly any management.
There are dedicated people looking into these businesses.
Nitin Gupta
Sure. This is Raj. And the second question pertains to like. With this equation, are we the largest. Digital first SMCG company in India? And also like do you have any aspiration of aspirational figure of digital brand salience like for 2030, like overall how much of our business will be from digital?
Saugata Gupta
I think we want to be a scale player which is profitable and admired. And as I said, how I think transforming ourselves from our incumbent to that as well as having some place in some of the international markets and in.
Nitin Gupta
Terms of size for the total business that called out in the opening commentary, which is about 4000 crores is what we think we should be able to reach by FY30 for all the digital brands, global brand.
Saugata Gupta
Sure.
Nitin Gupta
Thank you. And the last question pertains to quick. Commerce So I want to understand like the channel salience for our domestic revenue. And also for the 22% of the. Portfolio where we have the food and digital brands. So in the core it’s 5%. These ones obviously is higher depending on some of the brands. But as I said that ultimately some of the brands have a very strong D2C also.
Saugata Gupta
Sure about it. Thank you and all the best.
Nitin Gupta
Thank you.
operator
Thank you. We’ll take our next question from the line of Mihir Shah from Nomora. Please go ahead.
Mihir Shah
Hi team, thank you for taking my questions and Congress and a great set of acquisitions. So firstly wanted to just understand the real penetration opportunity for a long period of time we had seen Sofolo’s distribution was just limited to metros and then probably went into tier one. While in the next few years these new brands can have scale up opportunity in metros, how do you see the opportunity for these brands scaling up beyond metro tier one over the next three to five years? So that’s my first question.
Saugata Gupta
I think if you look at the contribution of organized trade in the current, you know, amongst the TG these brands operate it will be more than 50% if we look at some of the Metros today e com plus modern trade itself is reaching 40% plus in some of the top metros. So I don’t see the need for penetrating right now. There is enough opportunity in the BBM and focus is important, profitability is important. And one of the reasons as you know that Sapphola hasn’t penetrated is because of pricing. Having said that we would get into some GT but having a SKUS and price point which are different.
For example, I mean you know in popcorn there could be a hypothetically a 10 rupee 20 rupee price point which exists and you can use GT for that.
Mihir Shah
Got it. Second actually just wanted to check on popcorn. Popcorn. There is a very large player in popcorn in the mass market. Now this is in the gourmet format. Any plans to eventually get into those markets so that you know one stop shop thought process that you had. If somebody wants to think of popcorn one should think about Marico. So thoughts around that.
Pawan Agrawal
So if I look at it, Masala votes which is priced at 18 rupees is available and two and a half lakh outlets. So and we do have a 10 rupee 20 rupee popcorn in 4700 BCE which is available. That is one of the biggest synergies we are looking at to support them on the GT distribution for the price point because the price points are actually very Very relevant for the kind of stores that we go to. So that’s an immediate quick win that we are looking at.
Mihir Shah
Got it. Thank you. And lastly, just wanted to check on the. If you see the current founders, they have done a great job in scaling up this business and they’re now anchoring and partnering with Marico to take this further. The synergies of Marico we do understand, but the kind of investments that will be required, will this have any bearing except for the other two which are profitable? Will this have any bearing on the margin profiles in the near to medium term over the next few years for Marico in any sorts or these margins that we see on the other brands will hold up or these margins can for some time come down as they are in the investment phase.
Saugata Gupta
We have indicated the sustainable margins for both the brands. And see I think at the end of the day, if the unit economics is right, you don’t need to do it. And as I said that I don’t. In fact the margins for the rest of the brands will improve. And if you look at the two case studies which were put in the presentation, which is Plix and Beardo, there has been a significant improvement in the margins because don’t underestimate the power of common buying. The Marico procurement, Marico supply chain and Marico manufacturing.
Pawan Agrawal
And Meher, if you meant that whether it will have any impact on the group margin because of investment phase, the answer is no. Because the guidance that we had given at the end of the earnings call for the next year, we had considered that these acquisitions will come through and we continue to maintain that which is double the mid teens operating profit growth is something that we continue to hold from a group perspective.
Mihir Shah
Got it. Yes, that is what I was referring to. Thank you and wishing you all the very best. Thank you.
operator
Thank you. Next question is from the line of Anurag Dayal from Philip Capital. Please go ahead.
Anurag Dayal
Yeah, hi. Thank you for the opportunity, sir. So basically we have developed this playbook behind this acquisition, you know, referring to digital first consumers and you know, rapid innovation cycles, positioning. Could we see that eventually this will reshape how Marico builds and scales brands within its core portfolio? Do you see some elements of this model being embedded into legacy brands as well where it seems that the growth is somewhat tapering or do we, I mean just wanted to get your response on this.
Saugata Gupta
Yeah, I think we can get inspiration from premiumizing some of the hair oils or serums for example and participating far more aggressively obviously in the premium part of both hair Oils and serums. There are digital brands and therefore this learning can be transplanted into we participating in those much more aggressively. And as I said in Vietnam, since the market is still nascent and it is maturing, we have already started two brands as an example. One is while our X Men will continue to play in the mass, a super premium digital brand. A premium digital brand called Astroman.
Similarly, in the case of shampoo, female grooming and other adjacent categories like wash, dio and all, we have used the brand called Lashi, which is a hair and skin food. It’s a hair and skin food brand which we are experimenting with it. So therefore the core also has digital opportunities and we believe that capability will help us in participating in that. If you look at already things like we are doing like cold pressed oils or some of the premium, we have just premiumizing serums, we are premiumizing hair oils. That journey has already started and because that has happened because of both inspiration, capability building and learning from the digital businesses.
Anurag Dayal
Thank you so much.
operator
Thank you. We’ll take our next question from the line of Vaishnavi Gaurav from Craving Alpha Wealth Fund. Please go ahead.
Vaishnavi Gurung
Yeah, hi sir, thank you for taking my question. Just two, three questions from my end. First of all, I wanted to understand that since we have been acquiring brands recently, so like are we sort of lucky for organic growth opportunities? I think you’re asking about whether we are confident about organic growth opportunity.
Saugata Gupta
Yeah, I was asking if we are lacking all that growth opportunities. I think if you look at it, we believe that always these acquisitions are kind of an accelerator. It can’t be what I call an escape button for not doing organic growth. And if you look at some of our organic growth volume growths, we continue to be reasonably good. And I don’t think it’s a question of organic growth opportunities. Having said that, in any portfolio, if you see you are participating higher penetrated categories, if you have high growth ambitions, and we do have high growth ambitions of doubling in five years, which translates to a CAGR of anything between 13 and 14%, you need diversification.
So it’s a combination. A lot of food is actually been organic. The diversification, like if you look at the oats journey, if you look at the honey journey, soya journey. So I think it’s a combination of organic and inorganic. And the reason we have acquired an inorganic and digital is that that business model is something which is very difficult to build organically because the organization, capability and gearing is towards and therefore sometimes you can accelerate by doing this. And we have been extremely prudent in capital allocation and the valuations have been one of the best in the industry.
Pawan Agrawal
And again these are not random acquisitions. It’s a well thought out strategy in terms of ident identifying what are the portfolio gaps, what are the categories which has significantly large opportunity of growth and also trying to look at in terms of our existing equities do we have right to win or not. And then we go after these acquisitions and that all these things are also we have detailed out in terms of in the deck that we have shared and it’s very clearly a top up to our growth and we believe that this will continue to add value over the long term.
Vaishnavi Gurung
Just wanted to understand what kind of acquisitions are we looking for in the Future? Let’s say three to four years down the line. And one more question on 4700 BC banks like how are we planning to scale this premium bank considering our major distribution channels are through. Gt.
Saugata Gupta
I think it’s too premature to think of acquisition. I’ve indicated already we could look at something but we can’t be specific as far as 4700 BC is concerned. I mean there is enough for this one. I said GT is an accelerator for Marico. I think as you know a lot of our brands in terms of we have been significantly over indexed even in our core on modern trade and OT we have been developing these channels and these. Anyway these brands are run independently and they have strong opportunity and if you look at quick commerce or E commerce or I mean they are going to grow.
So there is GT is just a synergy with Marico that further accelerates. That’s about it. Thank you so much.
operator
Thank you ladies and gentlemen, that was the last question for today. On behalf of Marico Ltd. We conclude this conference. Thank you for joining us. And you may now disconnect your lines.