Department of International Business

University of Dhaka
Course Name: Management of Multinational Companies
Course Code: IB-405

Term paper
Topic: Merico Bangladesh Limited

Submitted to

Department of International Business

University of Dhaka

Submitted by
Infinity
Name ID No
Uchaysh Joseph Biswas JN-030-066
Md. Mehedi Hasan Shakil BE-030-088
Sahara Parvin FM-030-095
Md. Rafiquel Islam BE-030-101
Toputy Rani Saha RH-030-105

Submission Date:
 Executive Summary

General objective of this report is to be a leader in each of our businesses through heightened
sensitivity to consumer needs, setting up of new standards in the delivery and quality of products
and services and processes of continuous learning and improvement. Finally this report makes
SWOT analysis Marketing Effectiveness of Marico Bangladesh. We are fond of Marico’s
management and we like phase where Marico is in. From a segment stand point international
business is expected to grow rapidly and provide the necessary strength to marico’s growth.
Marico holds a leadership position in the Indian FMCG space. They shall make available brands
that contribute to healthy living through, both products drawn from agriculture offered in natural
or processed forms, and services.
 Table of Content

Topic Page NO
Introduction 01
Industry 03
Marico in Bangladesh 03
Marico in Global Arena 03
Objectives of Marico Bangladesh limited 05
The history of Marico Company 05
Strategies of Marico Company 06
Operations of MARICO 08
Internal Control System and Their Adequacy 09
SWOT Analysis 09
Marketing Mix of MARICO 11
Competitors of MARICO 12
Culture 13
Human Resources 13
Governance 14
Sustainability reporting initiative in Marico 15
Corporate Social Responsibility 15
Conclusion 17
 INTRODUCTION

In the current challenging macroeconomic environment, few FMCG are seeing down trading
by consumers. However, as majority of products of Marico are items of daily consumption, the
pressure may not be as severe. Also, a failure of monsoon may play a spoil sport. Discretionary
spending in services like Kaya may witness some slowdown. The margin outlook for most
FMCG companies have improved for the better, the benefits of which are expected to be
deployed in building existing brands and in establishing new ones as outlined by Marico.
Marico reported a healthy top line growth 16.8% on consolidated basis to Rs 696.7 crores. The
growth was led by strong expansion in volumes which witnessed a growth of 14% and 3%
price led growth. This is in sharp contrast to the trend witnessed few quarters back where the
value growth outpaced the volume growth which was mainly led by price increase. The strong
performance during the quarter is mainly led by roust growth in international business and
margin expansion due to lower input costs. PAT grew by 26.7% YoYo to Rs 58.6 crores.
Excluding one time exceptional item on account of divestment of Sundari, the PAT would
have grown by 37 % YoYo.

Fastest Growing FMCG company in Bangladesh Marico Bangladesh Limited (MBL) holds a
leadership position in the FMCG space. MBL is the subsidiary of Marico Limited, India
(Marico). MBL’s Products in Pure Coconut oil, Hair care and Skin Care reach out to more than
450,000,outlets in Bangladesh,  MBL generated a turnover of about Tk. 2650 Million (about
USD 38.4 Million) during 2007-08. MBL markets well-known brands such as Parachute,
Aromatic, Camelia, Hair Code and Beliphool to name a few, most of which enjoy leadership
positions (No. 1 in coconut oil segment), with significant market shares in respective
categories. Ranked 6th most trusted brand out 849 brands across the category by Bangladesh
Brand Forum in 2008, Parachute holds 73% market share in coconut hair oil. One in every
three Bangladeshi is a MBL consumer, while over 9.25 Million consumer packs from Marico
reach to consumers every month.  Marico Bangladesh Limited (MBL) has tripled its turnover
in 3 years, and achieved what very few FMCG companies would have been able to pull off-
37.71% compounded annual growth over past 8 years. How did they achieve this? By looking
beyond the traditional FMCG space and seeking focused avenues for growth. Transforming
consumers from non-branded to branded coconut oil offering purity. From a small player to a
3rd largest FMCG multinational company. Focus not just on organic growth but also in-
organic growth. At the same time, our  flagship brand ‘Parachute’ continued to grow year on
year, providing a firm foundation for our growth .While Parachute has been successful in
growing the market leading with 72% market share, becoming 6th best brand out of 849 brands
country wide among local &MNC brands. Our large investment in brand building, 360 degree
approach in marketing and expansion in distribution too has contributed rapid growth. Today
Marico Bangladesh Limited has emerged as the fastest growing vestment in brand building,
360 degree approach in marketing and expansion in distribution too has contributed FMCG

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Company. Our approach to the market with uncommon sense has helped us challenge the norm
to push the boundaries of our existing businesses and set up new ones.

Over the past 17 years, Marico has been continually improvising, building new brands. It has
created new categories and dominated markets with new products., Our large shares close to a
100%. Having moved up from products to services, Marico has now taken its brands to 24
countries worldwide, building a powerful franchise of 13 crore loyal consumers. Investments
in brand building have enabled these brands to occupy the top positions in their respective
categories, all the while allowing new brands to be continually developed. During this period,
Marico has progressed from being a largely industrial enterprise to a more consumer-focused
entity, creating enduring value for its consumers through a wide range of solutions  products
and services. Today, Marico’s turnover largely comes from brands across products and
services in the area of Beauty and Wellness. At Marico, we have a working atmosphere that is
always open and experimentative from our inception. The existence of an open environment
fosters the exchange of ideas and views across the organization, facilitating the flow of
information. Members do not see the need to wait for a forum to express their opinions.
Members have space for diversity of opinions and points of views, not with standing the
person’s position in the company. Marico holds a leadership position in the Indian FMCG
space. Marico’s Products and Services in Hair care, Skin Care and Healthy Foods reach out to
more than 20 countries in the Middle East, Asian sub-continent, Australia and USA. The
company generated a turnover of about Rs. 19.1 billion (about USD 477 Million) during 2007-
08 Marico markets well-known brand Saffola, Kaya, Sundari and Fiancee to name few, most
of which enjoy leadership positions  with significant market shares in respective categories.
Marico is present in the Skin Care Solutions segment through Kaya Skin Clinics (65 clinics in
India and The Middle East) and  Weight Management segment through Kaya Life (3 clinics in
India).
Marico is a branded player in Beauty and Wellness solutions. The company’s key management
strategies are built around differentiation and a way of thinking called ‘Uncommon Sense’.

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 Industry

Type of Industry: Consumergoods product

Products: The products of Marico Bangladesh limited can be characterized as:

 Parachute (coconut oil)

 Aromatic Gold
 Camellia Beauty soap
 Set Wet hair gel
 Niharnatuaral almonds hair oil
 Parachute advanced body lotion
 Hair code

Marico in Bangladesh

the category by Bangladesh Brand Forum in 2016, Parachute holds 73% market share in coconut
hair oil. One in every three Bangladeshi is a MBL consumer, while over 9.25 Million consumer
packs from Marico reach to consumers every month.Marico Bangladesh achieved staggering
48.4% annual revenue growth rate and 28.9% annual earnings growth rate over the last six years,
till September 2016.It recently changed the accounting year from October-September to
AprilMarch. In the last twelve months, from October 2010 to September 2011, the company
recorded 18.8% revenue growth and 16.6% earnings growth. Parachute coconut oil accounted for

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much of the growth with over 90% contribution to the company’s total revenue. MBL diversified
its portfolio of products over the years to include soap, edible oil, skin-care, hair color and
various value-added coconut oils. Although the contribution of each of the other products is
minimal (none exceeding more than 2% each) to the total revenue at present, they will generate
future growth for the company.

Marico in Global Arena

Marico holds a leadership position in the Indian FMCG space. Marico’s Products and Services in
Hair care, Skin Care and Healthy Foods reach out to more than 20 countries in the Middle East,
Asian sub-continent, Australia and USA. The company generated a turnover of about Rs. 25.1
billionduring 2016-17 Marico markets well-known brand Saffola, Kaya, Sundari and Fiancee to
name few, most of which enjoy leadership positions with significant market shares in respective
categories. Marico is present in the Skin Care Solutions segment through Kaya Skin Clinics (65
clinics in India and The Middle East) and Weight Management segment through Kaya Life (3
clinics in India).

Marico is a branded player in Beauty and Wellness solutions. The company’s key management
strategies are built around differentiation and a way of thinking called ‘Uncommon Sense’.

Marico Limited in Arab Countries

Marico ventured into the Arab market five years back through its premier brand -Parachute. The
company offers a wide range of Parachute oils and creams in these markets. Parachute Coconut
Hair Creams, one of the most successful products of the company in the Gulf region, include the
Parachute Extra Nourishment Coconut Hair Cream, Parachute Extra Moisturizing Coconut Hair
Cream, Parachute Intensive Care Coconut Hair Cream and Parachute Anti Dandruff Coconut
Hair Cream. To further strengthen its presence in the Middle East. Marico Limited incorporated
Marico. Middle East FZE as its subsidiary in November 2005. Marico Middle East FZE
incorporated Kaya Middle East FZE as its subsidiary in December 2005. Marico also acquired
the Ready Group’s hair care brand, Fiancée, in Egypt for further expansion in the Arab world.

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Marico Limited in the UAE

Marico launched Parachute Coconut Hair Cream sin the Gulf around five years back. It has
captured over 22 per cent of the UAE market. In 2005, Marico established a company, Marico
Middle East FZE, to expand its business in the UAE. Marico Middle East FZE has set up its
subsidiary – Kaya Middle East FZE. Kaya Skin Centers are located in Dubai (Jumeirah and
Karama) and Abu Dhabi.

Marico in Other Arabian Countries

In September 2006, Marico acquired the Fiancée brand from the Ready Group, Egypt, to enter
the Egyptian hair care market. Marico also has a presence in the Gulf market through its offices
in KSA, Oman, Qatar, Bahrain, Kuwait,Yemen, Lebanon and Sudan.

Objectives of Marico Bangladesh limited

Marico Bangladesh Limited other natural substances and the underlying science of hair care
and skin care. They shall make available brands that contribute to healthy living through, both
products drawn from agriculture offered in natural or processed forms, and services. They shall
develop, in parts of the world beyond the Indian Subcontinent, a franchise for our branded
products and services. They shall aim to be a leader in each of our businesses through
heightened sensitivity to consumer needs, setting up of new standard sin the delivery and
quality of products and services and processes of continuous learning and improvement. They
shall share our prosperity amongst members, share holders and associates, who contribute in
improving our equity and market value. We shall acquire the stature of a friendly corporate

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 citizen, contributing to the betterment of neighborhood communities, where we are
significantly present.

The history of Marico Company

In 1971, the Marico was founded by Harsh Mariwala who was a young graduate, started family
business named Bombay oil industries. Harsh envisions a branded FMCG for coconut and
refined oil in small consumer packs and set up a new national distribution network for
PARACHUTE. The ubiquitous parachute blue bottle makes its first appearance in Harshs first
innovation. In 1980, tin bottles were replaced by plastic bottles pioneering an industry wide shift.
2nd April, 1990 the Marico was born. In 1992, Marico shifted it’s headquarter from the Mosjid
Bundar Bazar to upscale Bandra. Marico first started asinternational marketer by exporting in the
period of 1992-94 by setting up its first overseas office in Dubai. In 1996, it was listed on Indian
stock exchange. In 2015, Marico’s Market cap tops INR 25000 crore.

Marico Bangladesh Limited is amongst the top 3 FMCG MNC companies and a trusted brand in
beauty and wellness space in Bangladesh. The company touches the lives of 1 out of every
Bangladeshis with an array of brands in various categories, including hair nourishment, edible oil
and male grooming, through a strong distribution network that reaches more than 790,000 outlets
throughout the country.  Its flagship brand, Parachute completed its journey of 12 successful
years in Bangladesh, with an ever-growing base of loyal consumers in October 2013. The brand
has been amongst top 10 most trusted brands continuously since 2009 and was awarded the title
of "Best Brand" by Bangladesh Brand Forum and Nielsen in 2011. Over the years, the company
has strengthened its brand portfolio, most notably through the expansion of its VAHO (Value
Added Hair Oil) segment. The VAHO segment now consists of several popular brands such
as Parachute Beliphool Lite, Parachute Advanced, Parachute Cooling Hair
Oil and Nihar Marico Bangladesh Limited also leads the powdered hair dye market with
the Hair Code  brand. The company continued to diversify its portfolio with the introduction of
Saffola Active (a healthy edible oil) and Set Wet Deodorants in 2013. Our journey in Bangladesh
is as follow:

 Incorporated in 1999

 Started operations in 2000

 Marico Bangladesh listed on Dhaka and Chittagong Stock Exchange in 2009

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  Launched Hair code Hair Dye in 2009 and achieved a market share of over 15% in its
first year 

 Launched Parachute Advansed Cooling Hail Oil in 2011

 Started bottling at Mouchak, near Gazipur in 2002 and copra crushing manufacturing in
Mahona, Bhavanipur in 2012

 Launched Saffola Active Edible Oil, Livon Silky Potion, Set Wet Deodorants and Livon

 Launched Nihar shanty Badam amla and Hair Code Keshkala in 2014

Strategies of Marico Company

Marico the brand/company which covers 4Ps strategy, they are-

1. Product
2. Price
3. Place
4. Promotion.

They and explains the Marico marketing strategy. The descriptions of every for strategy are
given bellow-

Product:

Marico is one of India’s top FMCG companies focused on health and beauty products. The brand
width in Marico marketing mix deals with hair oil, hair care, edible oil, deodorants, personal
wash and fabric care categories. Marico’s brand portfolio can be divided into two segments, viz.
Indian brands and international brands. The Indian brands of Marico include Parachute, Nihar,
Set Wet (deodorants and hair gel), Zatak, Livon, Medicare, Saffola (oil, oats, Active, Fit, etc.),
Revive instant bleach and Manjal. Internationally, Marico has the brands like Parachute

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Advanced Body Lotion in Bangladesh, Boss in Vietnam and Hercules in South Africa. Brands
like Parachute & Saffola are very well known brands in India & also worldwide.

Image: company website

Price:

Marico has a wide product range in a competitive market and hence has a diverse price range.
For most of its brands Marico followed the strategy of entering markets that have low
competition and emerged as leader in them, like hair oils, edible oil, etc. But recently Marico has
found itself in a competitive scenario as it entered deodorants, hair styling, fabric conditioners,
breakfast cereals, skin care, etc. Also, other FMCG giants have focused again on ayurvedic and
natural products segment with Patanjali’s recent entry in the industry. Marico therefore follows a
competitive pricing strategy to maintain its leadership in its leading brands like Parachute and
Saffola. This gives an insight about the pricing in its marketing mix.

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Place:

Marico is present in more than 25 countries. It acquired Nihar in India, Fiancee & Hair code in
Egypt, Black Chic and Hercules in South Africa. The distribution of Marico products in the
financial year 2015-16 increased by 8% and 6% in rural and urban sectors respectively. Major
increase in Value added Hair Oil segments in rural segments. Sale in urban stores grew at 11%.
Marico has taken up a new program called ONE which is Outlet Network Expansion, in order to
increase direct coverage in top six metro cities. This program is aimed at improving the
availability of Marico products in stores, retailer convenience and access to promotions. Marico
has incorporated IT in order to eliminate shortages in its supply chain. Internationally, market in
Bangladesh reduced by 3% strictly attributing to price correction as the volume increased by 2%.
In Egypt more investment in infrastructure to boost distribution channel. In international market
a lot of macro elements were at play.

Promotion:

Marico is known for its promotions, the fact has it has won plethora of medals and awards for its
varied promotion campaigns is proof enough. Marico uses all types of media like TV, online,
billboards, print media etc in its marketing mix.Marico is also known to rope in a lot of celebrity
for its endorsements like Vidya Balan for Nihar, Ranveer Singh for Set Wet and Deepika
Padukone for Parachute are some examples. Hence, Marico marketing mix is covered above.

Some of the ongoing campaigns of Marico are:

• Set Wet – Sada Sexy Raho

• Nihar- Dikho Khoobsurat, Karo Khoobsurat

• Nihar- I am capable

• Saffolalife- protectherheart

• Saffola Masala Oats- Chef’s Choice campaign

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• Parachute Advanced – KhulKeKheloHoli

• X Men for Boss, Vietnam

Operations of MARICO

Marico is a leading Indian group providing consumer products and services in the areas of
Health and Beauty based in Mumbai. During 2009-10, the company generated a Turnover of
about Rs.26.6 billion (USD 600 Million), in respect of its food, hair care and skin care related
activities. Marico’s own manufacturing facilities are located at Goa, Kanjikode, Jalgaon, Saswad,
Pondicherry, Dehradun and Daman.In Bangladesh, Marico operates through Marico Bangladesh
Limited, a wholly owned subsidiary manufacturing facility at Mouchak, near Gazipur.The
organization holds a number of brands viz. Parachute, Saffola, Sweekar, Hair&Care, Nihar,
Shanti, Medicare, Revive, Manjal, Kaya, Aromatic, Fiancee, Hair Code, Caivil, Code 10 and
Black Chic. Marico’s brands and their extensions occupy leadership positions with significant
market shares in a number of health and beauty areas. In addition to being a producer of
consumer products the organization also operates Kaya Skin Clinic (of which (as of 2010) 87
exist in India, 13 in UAE) and 1 in Bangladesh. Marico recently acquired the aesthetics business,
of the Singapore based Derma Rx Asia Pacific Pte. Ltd.  Harsh Mariwala is the Chairman and
MD of this organization. The company has 3 divisions the Consumer Products Group (CPB),
The International Business Group and Kaya. CPB is headed by Saugata Gupta. The company in
recent years has been known for its foreign acquisitions in countries. 
Internal Control System and Their Adequacy

Marico has a well-established and comprehensive internal control structure across the value
chain, to ensure that all assets are safeguarded and protected against loss from unauthorized use
or disposition that transactions are authorized, recorded and reported correctly and that
operations are conducted in an efficient and cost effective manner. The key constituents of the
internal control system are:

• Establishment and review of business plans

• Identification of key risks and opportunities

• Policies on operational and strategic risk management

• Clear and well defined organization structure and limits of financial authority

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• Continuous identification of areas requiring strengthening of internal controls

• Operating procedures to ensure effectiveness of business processes

• Systems of monitoring compliance with statutory regulations

• Well-defined principles and procedures for evaluation of new business proposals/capital

expenditure

Internal audits are undertaken on a continuous basis, covering various areas across the value
chain like manufacturing, operations, sales and distribution, marketing and finance. Reports of
the internal auditors are regularly reviewed by the management and corrective action initiated to
strengthen the controls and enhance the effectiveness of the existing systems. Summaries of the
reports are presented to the Audit Committee of the Board.

SWOT Analysis:

SWOT analysis involves an examination of a

firm’s strength, weakness opportunities, and
threats. It helps to evaluate firm’s strategies to
exploit its competitive advantages or defend
against its weakness. Strength and weakness
involve identifying the firm’s internal abilities or
lack thereof. Opportunities and threat includes
external situation such as competitive forces
discovery and development of new technologies,
government regulations and domestic and
international economic trends.Now we discussed
the SWOT analysis on MARICO Company. At
first we describe about strength of the company and
so on.

Strength:

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  Brand image: Firstly, MARICO has stayed in the local market in Bangladesh for many
years. So they are so experienced and stationed in people’s mind deeply. Everyone in
Bangladesh is aware of MARICO. MARICO portrays different kinds of products which
are already exist in the market and people like it. So there is strong brand preference for
MARICO over other substitutes in the mind of a number of consumers.

 Superior quality control measures: MARICO maintain and control the superior quality
of the product. It is the policy of agricultural marketing company limited to market
products of consistent quality at home and abroad as per would standards produced by in
accordance with good manufacturing practices.

 Integrity: MARICO believes success depends upon the quality and value of their
products by providing a safe, wholesome economically efficient and a healthy
environment for their customers and by providing a fair return to their investors while
maintaining the highest standards of integrity.

 Market share: Because of the variety of the product MARICO leads in the share market
and increasing the market share.

 Customer satisfaction: Whenever MARICO exist in the market, that time customer

consumed their product. They launch different kinds of product and the price of the
product is measurable. So the customer satisfied with the MARICO product.

Weaknesses:

 Limited decision taking capacity: The MARICO Company is existing under the rules
and regulation of agricultural marketing company limited. So MARICO cannot take
any instant decision to adjust the sudden market changes.
 Price disadvantage: Sometime price of the product may be varying because of raw
material. Because the price of the raw material which is also the key ingredient of their
product line, is comparatively expensive than that of their competitors in Bangladesh
especially the emerging ones. So this makes them sell their products at a higher cost
than most of their competitors.
 Lowest per capita consumption: Bangladesh has the lowest per capita consumption
in the entire world. So upper class and middle class can bear the MARICO product but
the lower class people cannot bear it.
 Lack of geographical coverage: Sometime the MARICO product cannot reach in the
definite geographical area because of lack of communication.

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Opportunities:

 The agriculture sector is the largest contributor to GDP. So MARICO produced canned
fruit and vegetables, mushrooms etc. and it is the part of agriculture. So it’s an
opportunity to contribute to GDP.

 The crop production system is highly labor intensive and there is an abundance of labor
in the country.

 Through the production of the MARICO product the employment opportunity is

increased in Bangladesh.

 Through the production of the good product there is a great opportunity to attract the
foreign investors.

 Company can develop the effective distribution system.

 MARICO Company can make survey to make effective product.

Threats:

 Uncertainty in receiving fair prices

 MARICO mainly produced the agro- based product and most of the products are
perishable. So it has to be preserved system.

 Inadequacy of appropriate technology.

 Lack of required capital.

 Decreasing market share.

 Major prolonged economic depression.

 Reduces the customer due to low quality of the product.

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 Marketing Mix of MARICO

Marico is a leading Indian group providing consumer products and services in the areas of
Health and Beauty based in Mumbai. During 2009-10, the company generated a Turnover of
about Rs.26.6 billion (USD 600 Million)[2] , in respect of its food, hair care and skin care
related activities. Marico’s own manufacturing facilities are located at Goa, Kanjikode, Jalgaon,
Saswad, Pondicherry, Dehradun and Daman.In Bangladesh, Marico operates through Marico
Bangladesh Limited, a wholly owned subsidiary Manufacturing facility at Mouchak, near
Gazipur.The organization holds a number of brands viz. Parachute, Saffola, Sweekar,
Hair&Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Aromatic, Fiancee, HairCode,
Caivil, Code 10 and Black Chic. Marico’s brands and their extensions occupy leadership
positions[citation needed] with significant market shares[citation needed] in a number of health
and beauty areas. In addition to being a producer of consumer products the organization also
operates Kaya Skin Clinic (of which (as of 2010) 87 exist in India, 13 in UAE) and 1 in
Bangladesh. Marico recently acquired the aesthetics business, of the Singapore based Derma Rx
Asia Pacific Pte. Ltd.  Harsh Mariwala is the Chairman and MD of this organization. The
company has 3 divisions the Consumer Products Group(CPB), The International Business
Group and Kaya. CPB is headed by Saugata Gupta. The company in recent years has been
known for its foreign acquisitions in countries.

Competitors of MARICO

Marico limited is facing neck to neck competition with the likes of

 ITC Limited.

 L'Oréal.

 Nirma Ltd.

 Colgate-Palmolive.

 Procter and Gamble.

 Dabur India etc.

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Marico Ltd, one of India’s leading consumer goods companies, has so far successfully kept up
with this increasingly fierce marketplace. The company operates in 25 emerging countries in
Asia, Africa and the Middle East, and has consciously decided not to enter developed markets.
To maintain its market position, Marico attempts to circumvent direct competition with large
volume players whilst keeping expenses at a minimum.

1. Product Positioning in Niche Segments

Rather than participating in the continual price slashing of large volume players, Marico
positions its brands as high quality products, and offers only a handful of niche products which
are catered to health-conscious consumers in the upper middle class. ‘Edible oil’, for instance, is
a major category in the Indian FMCG sector. Marico only covers a small, high-end segment
which is promoted as a ‘good for the heart’ product. Emphasizing its brands’ value propositions
and avoiding price wars, enables Marico to establish profit margins higher than the industry-
average.

2. Benefit from Market Expansion

Marico fosters rapid expansion into other emerging countries by acquiring regional brands in
foreign emerging markets which generally have under-penetrated supply in several consumer
goods categories. At this stage of an economy, entry barriers are still relatively low and little
financial resources are necessary to build a brand and increase its market share. By purchasing
existing product lines which already have strong brand awareness, Marico is able to evade
extensive investments in marketing activities when establishing their positioning in foreign
markets.

3. Focus on Core Products and a neatly defined Target Group

MNCs generally offer a broad portfolio of products which are present in various price segments.
They adjust their products to country-specific needs and even cascade their marketing
approaches down to regional habits. This diversity of target segments leads to a severely
complex organization; and the imperative need to invest heavily in R&D entails a high cost-
structure. To avoid the latter, Marico decided to concentrate on countries with a similar
economic situation and cultural mind-set to India. In all markets the company offers its locally
purchased brands and its two core product lines. The narrow range of products and the
homogeneous target groups keeps R&D costs low as there is a limited necessity to adapt product
attributes to local preferences.

Culture

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One of the striking features which stands out about Marico Ltd. as an organization is their
reference to all employees as ‘members’ rather than ‘employees’. The emphasis is on an open
and transparent culture which is united with an environment of trust and mutual respect., “We
are an organization which believes in ‘membership’ rather than ‘employee ship’. People here are
given early responsibility which enables them to learn and grow as an individual.” Marico
Limited is is one of India’s leading FMCG companies and ranks #36 in the Great Place to Work
Institute’s study, and #2 in the Industry Category of the FMCG sector.

The Indian FMCG sector boasts of the world’s topmost MNCs as well as domestic home-grown
companies. In such a scenario, Marico’s attempt to attract talent has been extremely successful.
“The perception around domestic FMCG firms is that they are giving tough competition to
MNCs. Today, the employees want to work for a company that is doing well and has a strong
culture. They even interact with the ex-employees to gain insights into the company. Marico has
a robust and well designed process to recruit management trainees, who are further aligned with
the organizational goals to convert them into full-time employees. Eventually, when potential
candidates compare us with any MNC, they see for themselves the open culture, the freedom to
create their own future, and the empowerment to take decisions at Marico. Marico has also won
several awards which acknowledge us as an ‘employer of choice

Human Resources

The Human Resources team is not seen as a separate entity but as a team within a larger team,
the latter being Marico itself.

Our HR managers are just like one of our line managers, facilitating those in need, using their
areas of expertise. That is not to say that their efforts end there. They also shoulder the onerous
responsibility to carry the company forward. There are three basic things that will catch your eye
at Marico. The open environment, the empowerment at even basic levels and the job content
itself. The working atmosphere is friendly and informal, where voices in the open are
encouraged. Members are encouraged to explore new roles in areas of their interest by
participating in activities outside their contracted job roles.

At Marico, we have designed a flat organization, with no more than 5 reporting levels between
the Managing Director and the blue-collared workman on the shop-floor which translates into
improved responsiveness. Various sessions are conducted constantly to evaluate progress and
address any problems. The 'Organization Communication and Open House' are held once a year,
to review plans, policies, and decisions. Our company culture is structured and works at three

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basic levels. At the level of the collective, involving the entire organization, to make Marico a
place that is emotionally owned by its people and associates. At the group level, focusing on
effectiveness, not only within teams but also between teams and an effective interface between a
team and the rest of the organizational the individual level, developing processes that integrate
an individual's need for holistic growth, by focusing on career development and life style
aspirations.

At Marico, the emphasis has always been on the possibilities for lateral growth, with our rewards
and recognition initiatives being performance based. We have a job rotation programme, where
managers can build a variety of skills. In fact, here, a person picked for a job rotation construes it
as a positive sign of development for his/her career within Marico. Growth takes place not only
as a professional, but also as a person and leader. This growth is enabled by giving inputs on
developing a sound leadership style through a programme on the 'Managerial Grid'. The person
develops an understanding of the various leadership styles and becomes open to receive critique.
This, when followed up by regular Relationship Reviews, helps the person develop into a sound
leader.

A unique process of Performance enhancement through deployment of "MBR" (Management by

results) is experienced by Mariconians, for, the belief is to create the challenge and the enablers
for optimum performance. HR also helps improve performance through the process of
innovation. This is a process, which weaves itself into the business needs (for example,
development of the marketing strategy of a brand) and helps improve the outcome through a
structured process of innovation. There is significant effort being devoted to IT, which we
believe is required not just to keep up with the times but also to give the members of Marico new
opportunities to expand their horizons. For those interested in HR itself , there exist a wide range
of HR opportunities - OD, HR processes, Plant HR, Sales HR and process facilitation roles. At
Marico, you will find almost everything being done differently and after a while, you will find
yourself contributing to these constant changes. At Marico, you will learn to grow in several
ways, both professionally and personally. And our promise is - always for the better.

Governance

Corporate Governance framework provides astrong platform for evaluating how Management’s
responsibilities fit with the Board’s oversight responsibilities. The Company’s corporate
governance framework exists to ensure its relevance,effectiveness and sustainability in

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addressing present and future business environment challenges. The parties having critical roles
in the overall governance programs and contributing to the process of

Corporate Governance are:

 The Board of Directors: responsible for oversightand directions;

 Executive Management: responsible for drivinggovernance and risk management
practices
 The business units and supporting functions:where the risk activities occur and ownership
lies.

Marico Bangladesh’s Comprehensive Corporate Governance framework is based upon the

following principles:

 Vision to create long term value

 Pursing best business practices and promotinghighest Ethical standards & values
 Enhancing Corporate Culture
 Ensuring Disclosure and Transparency
 Effective Risk Management
 Effective leadership from the Board of DirectorsAdherence to Marico’s Policies and
GuidelineAdherence to Legal & Statutory requirements:
 Bangladesh Securities and Exchange Commission(BSEC) Corporate Governance
Notification
 The Companies Act 1994 and other applicableregulations of Bangladesh
 Dhaka and Chittagong Stock Exchanges ListingRegulations
 Laws of the land

Sustainability reporting initiative in Marico

Sustainability Report is about disclosures on non-financial aspects of business. The reports are
generally made on the GRI-G3 (Global Reporting Initiative – 3rd Generation) guidelines,
covering the company’s performance in following fields:

1. Economic

2. Environmental

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3. Social

Marico has been working in various areas related to sustainability over the past few years. There
have been a wide range of initiatives across energy conservation, water conservation, CSR and
waste disposal, apart from business initiatives involving communities such as farmers and
associates.

Corporate Social Responsibility

Marico believes in aligning the interest of all stakeholders in the environment in which it
operates – its shareholders, consumers, members, associates, government and society. Promoting
conscious capitalism is an important step towards fulfilling the Company’s purpose. Marico has
chosen the following areas of focus to make its contributions towards society and to function
responsibly in respect of the impact its operations have on the environment. Innovation is a
crucial way to leapfrog into the center stage of global business leadership. Based on this
cornerstone, Marico instituted its CSR initiative in 2003 by forming the Marico Innovation
Foundation. The Foundation provides a framework to industry and the social sector to leverage
innovation for quantum growth. The Foundation plays the role of a catalyst and works towards
creating an innovation eco-system through cutting-edge research, knowledge creation and
dissemination. Its recognition platform – Innovation for India Awards - biennially awards
breakthrough innovations from India.

One of its popular researches resulted in a best seller publication – “11 mission biographies
Making Breakthrough Innovation Happen: 11 Indians who pulled off the impossible”. This
publication is a culmination of a six-year joint discovery effort to identify genuine breakthrough
innovations from within India, and then uncover cutting-edge insights into what these
innovations did differently, to make the impossible happen. Through its upcoming Innovation
Publication, the Marico Innovation Foundation looks to spread innovation knowledge that will
enable organizations emerge with innovative thinking and use this to address challenges. MIF
felt the need to continuously generate this knowledge and create a regular channel to disseminate
this information.

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To recognise and applaud outstanding leadership with innovative focus in sectors, the Marico
Innovation Foundation in institutionalized the Innovation for India Awards. These Awards
acknowledge and foster leadership with innovative focus in various business and social sectors.
From 2010, a new category - Public Governance – has been introduced to recognize innovations
where the Central or State government or any wing of the government including public-private
partnership has innovated. The intent of the Awards is to reward projects and businesses that
make a real difference to India and the community at large.

CONCLUSION

Marico is a rewarded company of Bangladesh. Marketing is key to the success of any FMCG
company. However, implementing a marketing strategy needs the support of technology and at
Marico, marketing and technology work closely to ensure this. Today, technology has to
understand and balance three things to develop products and technologies for a marketing
strategy. So marketing strategies of this company are satisfactory. The major products of the
company are hair oil, skin care, beauty care, health care, food item etc. Their pricing policy is
customer satisfaction basis. Distribution strategy follows good use of sellers and distributors all
over Bangladesh. Promotional measures are taken through free sample distribution, concession
price, discount and commission, participation and exhibition and post sale service. The

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company has goodwill in the market. Sales volume is in high level. Good earnings and
profitability are there. Company management is highly efficient and cooperative. Financial
resources are properly managed. Because of democratized management employees are highly
motivated to work. In today’s business market Marico BD lead a very good financial position
in Bangladesh. There equity position is good. Marketing effectiveness is satisfactory.
Marketing and management employees are work like a chain. A very efficient audit system is
there. Company’s employees are trained for there specific job Financial analysis, marketing
information system, data collection all are computerized.

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 References

1. http://marico.com/bangladesh
2. https://www.bloomberg.com
3. http://www.bangladeshdir.com
4. https://bd.kompass.com

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