Consumer products major Marico Industries has decided to sell its Sil brand of jam and processed foods.
Sil, which entered Marico's portfolio with the acquisition of Kannur Foods, is the second largest brand of jams in India after Hindustan Lever's Kissan, which has a marketshare of 60 per cent. The Sil range pulls in revenues of around Rs 70 crore (Rs 700 million) annually.
After reviewing its portfolio a la Hindustan Lever, it has identified Sil as a non-core brand. Several other Marico brands, not seen as "big bets", could also be up for sale.
Milind Sarwate, chief financial officer of Marico Industries, confirmed that Sil no longer qualified as a core brand and would undergo a review.
"We will look into how the various categories and brands fit into Marico's overall strategy. If we find cases eligible for selloffs, we will time them simultaneously with acquisitions so that the overall throughput in the Marico system is not reduced," Sarwate said.
Although Sil was a reputed brand, there was no major brand-building exercise for it, Marico executives said.
Sil is an umbrella brand for jams, soups, mayonnaise and sauces. Sil is facing tough competition from Kissan sauces and jams, Knorr soups and Maggi sauces and soups.
Hindustan Lever has also stepped up its presence in the food market. Marico's big bets include brands like Parachute, Sweekar and Saffola. The flagship Parachute contributes around 50 per cent to its turnover.
"We will focus on our big bets and support them by committing more resources and campaigns," Sarwate said.
Marico's other brands include Oil of Malabar, Hair & Care, Shanti Amla, fabric care brand Revive, and shampoo brand Mediker.
The company continuously evaluates its portfolio. It recently acquired soya nuggets and granules brand Meal Maker for an undisclosed amount.
