According to distributor checks, Marico has reduced prices of its flagship Parachute coconut oil brand after a sharp correction in copra prices, the key raw material used in coconut oil manufacturing. The company has cut the price of its 1-litre Parachute Coconut Oil pack by 16.7% in June, bringing it down to ₹450 from ₹540 earlier. This significant price reduction reflects the company's ability to pass on cost benefits to consumers following improved raw material conditions.
The price reduction comes as copra prices have declined nearly 20% quarter-on-quarter following improved crop yields and better supply conditions. According to reports, this correction follows an unprecedented surge in copra prices during the second quarter of FY26, when prices had nearly doubled year-on-year due to supply constraints and adverse weather conditions in key coconut-growing regions. Industry experts note that the recent fall in copra prices has provided Marico room to reprice its coconut oil portfolio and pass on some benefits to consumers. Copra is the most critical input for coconut oil production, accounting for a substantial portion of manufacturing costs, making fluctuations in copra prices a direct impact on pricing strategies and profitability for coconut oil makers.
As reported, Parachute remains one of the most important brands in Marico's portfolio, with analysts estimating that the Parachute franchise contributes nearly 32% of the company's overall revenue. Despite being a relatively mature category, the brand continues to be a major earnings driver, operating at EBITDA margins of around 19-20%. The contrasting pricing actions highlight the divergent cost trends across Marico's product categories, with falling copra prices providing relief in the coconut oil business while inflation in paraffin and other inputs continues to weigh on the value-added hair oil segment.
While Marico has lowered prices in its core coconut oil business, the company has simultaneously raised prices in parts of its value-added hair oil portfolio due to inflation in other input costs. According to distributor checks, the price of Jasmine hair oil has been increased by 11.1% in June, with the 90 ml pack now costing ₹50, compared with ₹45 earlier, reflecting a ₹5 increase. This price hike comes amid rising paraffin costs, which have put pressure on the economics of value-added hair oils, as paraffin is a key ingredient used in several hair oil formulations and has witnessed an upward trend in recent months, prompting companies to recalibrate pricing strategies.
As reported, value-added hair oils represent another important growth segment for Marico, contributing approximately 13% of the company's revenue and typically delivering EBITDA margins of over 20%, making it more profitable than several other segments within the portfolio. Going forward, investors will closely monitor commodity price movements and their impact on Marico's margins, volume growth, and pricing strategy. The recent reduction in coconut oil prices could support demand recovery in the mass segment, while selective hikes in premium hair oils may help protect profitability amid ongoing input cost pressures.
