Marico expands water conservation efforts with Jalashay Programme, creating 400+ crore litres of potential in FY25

In an era where water scarcity threatens agricultural productivity and community well-being, Marico Limited has reaffirmed its commitment to sustainable water management. Through its Jalashay programme, the company has successfully created over 400 crore litres of water conservation potential by the end of FY25. This initiative, spanning key Indian states such as Maharashtra, Gujarat, and Tamil Nadu, reflects Marico’s long-term strategy to mitigate water shortages and support farming communities.

With India being one of the most water-stressed nations globally, businesses have increasingly played a role in advancing conservation efforts. Marico’s Jalashay programme integrates rainwater harvesting, groundwater management, and micro-irrigation systems to address these challenges. By constructing over 1,200 water harvesting structures and implementing micro-irrigation across 230 acres, the company has enhanced water accessibility in regions struggling with erratic monsoons and depleting groundwater levels.

What Are the Key Initiatives Under Marico’s Jalashay Programme?

The Jalashay programme has been instrumental in rejuvenating water resources across multiple regions, each with distinct climate challenges. In Jalgaon, Maharashtra, Marico has focused on rainwater harvesting and infrastructure development, collaborating with local communities to restore traditional water sources. In Pondicherry, Tamil Nadu, the initiative has introduced rooftop rainwater harvesting and greywater treatment systems, allowing treated wastewater to be repurposed for gardening in schools.

Meanwhile, in Dahod, Gujarat, an aspirational district identified by the Indian government, Marico has built new water harvesting structures and de-silted existing check dams, improving water retention for long-term sustainability. These interventions address a critical need, as groundwater depletion continues to accelerate due to overuse and climate change. By focusing on site-specific solutions, the Jalashay programme demonstrates how corporate-led sustainability initiatives can align with government development programmes to maximize impact.

How Is Marico Using Scientific Approaches to Strengthen Water Conservation?

Marico has collaborated with ACWADAM, a leading groundwater research institution, to develop scientifically driven water management strategies. Through hydrogeological studies, water budgeting, and drip irrigation techniques, farmers are being trained to transition away from water-intensive crops to sustainable agricultural practices.

Additionally, the company operates Panishala training centres, where local farmers and community members gain insights into groundwater conditions, data monitoring, and water-efficient farming techniques. The integration of green energy solutions and water-resilient cropping practices is further strengthening agricultural output while reducing dependency on depleting resources.

Marico’s approach aligns with key United Nations Sustainable Development Goals (SDGs), particularly SDG 6 (Clean Water and Sanitation), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 12 (Responsible Consumption and Production). These global benchmarks underscore the importance of corporate sustainability initiatives in addressing water security issues while promoting responsible consumption patterns.

What Are the Economic and Social Benefits of Marico’s Jalashay Programme?

Beyond its environmental impact, Marico’s water conservation efforts have generated significant economic and social benefits for rural communities. Reliable irrigation has led to higher crop yields, offering farmers greater income stability. Reduced reliance on unpredictable monsoons has helped mitigate risks associated with climate variability, a growing concern for India’s agrarian economy.

Moreover, improved soil health through erosion control and reduced waterlogging has strengthened long-term land productivity. These measures collectively contribute to rural economic resilience, demonstrating how private sector interventions in water conservation can directly enhance livelihoods while supporting India’s agricultural economy.

What Does Marico’s Water Sustainability Strategy Mean for Investors?

As sustainability increasingly shapes corporate strategy and investor sentiment, Marico’s Jalashay programme positions the company as a frontrunner in environmental, social, and governance (ESG) initiatives. Analysts have noted that companies with strong ESG commitments tend to attract long-term institutional investors, particularly in sectors such as FMCG, where environmental responsibility plays a critical role in brand perception.

As of March 21, 2025, Marico’s stock closed at ₹630.80, reflecting a 0.25% dip from the previous session. However, the stock has gained 4.04% over the past week, demonstrating positive short-term momentum. Over the past month, it has recorded a 0.96% increase, while over six months, it has seen an 11.03% decline, reflecting broader market conditions and sectoral performance.

Despite recent volatility, analysts remain optimistic about Marico’s long-term prospects. A consensus of 35 market analysts has projected a 12-month median price target of ₹717.09, indicating a 13.7% upside. Nomura, a key brokerage, has revised its target to ₹800, maintaining a ‘Buy’ rating. With a return on equity (ROE) of 37.2% and a dividend payout ratio of 74.9%, Marico continues to be seen as a financially stable, investor-friendly stock.

The company’s focus on core brands, sustainability, and health-oriented product expansion aligns with evolving consumer preferences and ESG-conscious investment trends. Investors seeking exposure to environmentally responsible companies within the FMCG sector may find Marico’s strategy particularly appealing. However, as with any investment, monitoring broader market trends and company performance metrics remains essential.

How Does Marico’s Water Conservation Effort Reinforce Its Broader Business Strategy?

Marico’s expansion into sustainability-driven initiatives reflects a broader industry shift towards responsible corporate governance and social impact. With increasing regulatory focus on environmental accountability, businesses that integrate water conservation and resource efficiency into their operations are better positioned for long-term resilience.

For Marico, the Jalashay programme is not just a corporate social responsibility (CSR) initiative but an essential component of its business sustainability model. By securing water resources for rural agricultural communities, the company strengthens the very supply chains that contribute to its product ecosystem, from coconut-based oils to plant-based wellness products.

The impact of water conservation extends beyond Marico’s direct stakeholders. As global consumers increasingly prioritize sustainability, brands that demonstrate genuine commitment to environmental responsibility stand to benefit from enhanced consumer loyalty and stronger brand equity. With the FMCG sector undergoing rapid transformation, Marico’s leadership in water stewardship underscores its long-term strategic vision.