Home / Business and Economy / Copra Crisis: Marico's Flagship Oil Faces Unprecedented Price Surge
Copra Crisis: Marico's Flagship Oil Faces Unprecedented Price Surge
24 Nov
Summary
- Copra prices, the key ingredient for Parachute oil, have surged over 120% in one year.
- This dramatic price increase is causing the most significant squeeze in Marico's history.
- Parachute oil contributes a substantial 36% to Marico's overall revenue.
The prices of copra, the dried coconut kernel essential for Marico's iconic Parachute oil, have experienced a dramatic surge, escalating by more than 120% within a single year. This sharp increase has created the most substantial financial squeeze Marico has faced in its history, posing a significant challenge to the company's operations and profitability.
Parachute oil, a staple in many Indian households and a product that has long driven Marico's sales, represents a critical 36% of the company's total revenue. The recent, unexpected spike in copra prices has therefore put considerable pressure on Marico's financial performance, leading to intense discussions within the company's leadership.
This escalating ingredient cost is directly impacting Marico's bottom line. The company is now grappling with the ramifications of this historic price hike, as the sustained increase in copra costs threatens the profitability of its most recognized product line and necessitates a strategic review of its financial planning.
