Mumbai: Consumer goods giant Marico Limited has come under the scanner of the Income Tax Department. According to The Economic Times, the department’s Mumbai investigation wing on Wednesday conducted a large-scale survey operation across the company’s offices and facilities nationwide. More than 200 officers were deployed for the exercise, which is said to be part of a wider national drive.
Market Reaction
The development had an immediate impact on the stock market. Shares of Marico fell 1.32% to ₹714.25 apiece on the Bombay Stock Exchange (BSE) around 1:15 p.m. The stock has lost over 2.6% in the last two weeks, though it still posted a gain of more than 4% in the past three months. For investors, the short-term decline highlights uncertainty until further clarity emerges.
Silence from the Company
Marico, which owns household brands like Parachute, Saffola, and Livon, has not issued any official statement so far. Market observers suggest that until the company clarifies its position, speculation and nervousness among investors will likely continue.
Why Section 133A Matters
The survey was carried out under Section 133A of the Income Tax Act, which is different from a full-fledged search operation. While the scope is more limited, tax officials still hold the authority to inspect and copy documents, impound them temporarily, and even expand the survey if crucial records are found elsewhere. If discrepancies are uncovered, the move could escalate to stricter enforcement.
The Larger Question
Marico reported a turnover of $1.3 billion in FY 2024–25, with a strong footprint not just in India but also in parts of Asia and Africa. The key question now is how this survey will affect the company’s long-standing reputation and investor confidence, especially at a time when consumer sentiment and FMCG valuations remain sensitive.
