This week, the Income Tax Department carried out a survey operation at the premises of Marico Ltd, one of India’s best-known FMCG companies. Marico is behind household brands such as Parachute hair oil, Saffola cooking oil, and Livon hair serum.
The operation was led by the Mumbai investigation wing and according to reports, around 200 income tax officers were involved. While the scope of the exercise has not been officially disclosed, it immediately put Marico in the spotlight.
What Marico Said
Marico confirmed that officials visited some of its offices and manufacturing units in India. The company said it is fully cooperating with the authorities and clarified that the survey has had no material impact on day-to-day business operations so far.
What Is an IT Survey?
The action against Marico was conducted under Section 133A of the Income Tax Act. A survey is different from a raid which is known as Search & Seizure as per Income Tax Act but still gives income tax officers significant powers:
- Inspect books of accounts and financial records.
- Place identification marks and take copies of documents.
- Impound documents (for a limited period unless higher approval is granted).
- Visit other places if records are maintained outside the surveyed premises.
The main objective is to verify records and detect possible tax evasion.
Impact on Marico
Following the news, Marico’s stock fell 1.59% on the BSE, closing at ₹712.30 per share. The company, however, continues to be financially strong reporting ₹10,831 crore in consolidated sales for F.Y. 2025, up 12% year-on-year with net profit up 10% at ₹1,658 crore.
Why It Matters
The survey comes just ahead of the rollout of GST 2.0 tax reforms next week signalling a tighter approach to compliance. With Marico being one of India’s leading FMCG players, the development has drawn significant industry attention.
For now, the authorities have not released any findings and Marico has assured stakeholders that operations remain unaffected.
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