Marico allocates 9.6% of sales to advertising, spends Rs 1,300 crore in FY26

Marico increased its advertising and sales promotion expenditure by 15% year-on-year to Rs 1,300 crore in FY26, up from Rs 1,128 crore in the previous fiscal. The FMCG major stepped up investments to strengthen its brands amid rising competitive intensity.

According to the company's FY26 annual report, advertising and promotion investments accounted for 9.6% of sales. The company said the higher brand investments were supported by a structured cost management framework that helped offset inflationary pressures. Procurement agility, supply chain efficiencies, productivity initiatives and overhead optimisation enabled it to fund growth investments without compromising operational discipline.

Besides advertising expenses, Marico reported employee benefit expenses of Rs 916 crore during FY26, while other expenses stood at Rs 1,508 crore.

In its annual report, Marico also identified intensifying competition as one of its key strategic risks. The company said the growing number of brands across offline and online channels, coupled with aggressive pricing and counter-marketing campaigns by rivals, could impact brand relevance, market share and pricing power.

To address these challenges, Marico said it will continue investing in product innovation, differentiated brand propositions and responsible marketing initiatives. The company also plans to deploy agile marketing response mechanisms to counter competitive moves. It will focus on cost-efficient manufacturing, supply chain optimisation and economies of scale to protect margins.

Additionally, Marico said it intends to strengthen its market presence through strategic alliances and collaborations with suppliers, distributors and complementary businesses, while protecting its consumer franchise during periods of market volatility.