Marico

Annual Report 2020-

21

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About this report

This is Marico’s Proxy Annual Report.

This report was made on the assumption and forecasting of pervious years report i.e. 2007-
08, 2008-09, 2009-10,2017-18, 2018-19 and 2019-20 Financial years.

Reporting Boundary

The financial information contained in this Report pertains to Marico Limited, including its
domestic and international business, subsidiaries and joint ventures. The non-financial
information is limited to the Company’s operations in India unless otherwise specified (Based
on Assumptions).

Reporting period

The Report covers financial and non-financial performance of the Company from April1,
2020 to March 31, 2021.

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Content of this Report

1. World of Marico
2. Portfolio of Products
3. Performance Highlights
4. Marico in COVID-19 Pandemic
5. Shareholders
6. Value Creation
7. Consumers
8. Employees
9. Partners
10. Risk Management
11. Financial Statements
12. For the future

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World of Marico
How we worked through the new normal.

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World of Marico

About Marico

Marico Limited is one of the India’s Leading Consumer goods companies operating in global
beauty and wellness categories. With its headquarters in Mumbai, Marico is present in over
23 countries across emerging markets of Asia and Africa. It nurtures leading brands across
categories of hair care, skin care, edible oils, healthy foods, male grooming and fabric care.

Marico touches the lives of one out of three Indians, through its portfolio of brands, such as
Parachute Advansed, Nihar Naturals, Mediker, Veggie Clean, Kaya Youth, Coco Soul,
Revive, Set Wet, Beardo and Livon.

Marico has eight factories in India, located at Puducherry, Perundurai, Jalgaon, Guwahati,
Baddi, Paonta Sahib and Sanand.

The International business portfolio includes brands such as Parachute, Parachute Advansed,
HairCode, Medikar SafeLife, Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men,
Sedure, Thuan Phat and Isoplus.

Our Values

1. Consumer Centric: Keeping consumer as the focus and partner, in creating and
delivering solutions.
2. Opportunity Seeking: Identifying early opportunity signals in the environment to
generate growth options which helped us in coping with Covid-19 pandemic
situations.
3. Excellence: Continuous improvement of performance standards and capability
building, for sustained long term success.
4. Innovation: Experimentation and calculated risk taking to increase success
probability of radical/pioneering ideas to get quantum results.
5. Transparency and Openness: Allowing diversity of opinion by listening without
bias, giving and receiving critique, with mutual respect and trust for the other.

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 6. Bias for Action: Preference for quick thoughtful actions as opposed to delayed
actions through analysis.
7. Boundarylessness: Seeking support and influencing others beyond the function and
organisation to achieve a better outcome or decision without diluting one’s
accountability.
8. Global Outlook: Sensitivity and adaptability to cultural diversity and learning from
different cultures.

Geographical Presence

Spreading our Kingdom in India and beyond

With a primary presence in India, and select market across emerging countries of Asia and
Africa. Marico intends to develop scale in the businesses in South Asia, Africa, the Middle
East and Myanmar.

National Markets

Depots

1. Sonipat
2. Ghaziabad
3. Lucknow
4. Zirakpur
5. Jammu
6. Jaipur
7. Kolkata
8. Siliguri
9. Guwahati
10. Patna
11. Ranchi
12. Cuttack
13. Agartala
14. Indore
15. Pune
16. Bhiwandi

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 17. Nagpur
18. Aurangabad
19. Ahmedabad
20. Hyderabad
21. Vijayawada
22. Hubli
23. Bengaluru
24. Chennai
25. Coimbatore

Redistribution Centres

A. Kolkata
B. Bhiwandi
C. Hyderabad
D. Sonipat

Regional Offices

R1. New Delhi

R2. Kolkata

R3. Mumbai

R4. Hyderabad

Plant Location

P1. Perunduri

P2. Sanand

P3. Puducherry

P4. Baddi

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P5. Jalgaon

P6. Guwahati NER 1

P7. Guwahati NER 2

P8. Paonta Sahib

International Markets

North Africa and the Middle East

1. Egypt
2. Middle East

South Asia

1. India
2. Bangladesh

South East Asia

1. Vietnam
2. Myanmar

South and Sub-Saharan Africa

1. South Africa

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 46.6

58.5

84.73

Return onon
Return Capital Employed
Net Worth
Dividend Payout in FY21 Performance Highlights FY21

Performing through COVID 19 pandemic

Business Performance

1. ₹ 8493.50 Crore Consolidated turnover

2. 35% Domestic Revenue contribution from modern trade and e-commerce (up from
22% in FY 20)
3. 56% Consolidated EBITDA growth(y-o-y).
4. 48.97% Y-o-Y growth in consolidated Profit after tax.
5. 70,000 Villages in India through the stocklist network.

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Environment Performance

1. 700 Million Litres: Expanded the water conservation capacity to 700 litres from 640
litres, thus increasing the cumulative conservation capacity to 1.43 Billion litres.
2. 97% Packing materials used are recyclable by weight also taking initiative to reduce
use of the plastic in our products.
3. 85% of total energy consumed is from renewable energy sources and planning go
solar powered by 2027 in all our factories.
4. Reducing the Green House Gas emission intensity year by year.

Social Performance

1. 1.5 million plus, students received access to quality education under ‘Nihar Shanto
Pathshala Fun wala’ since inceptions.
2. Also reaching out to the rural areas for providing hassle free education to children in
this COVID-19 pandemic.
3. 82,421 Students beneficiaries under ‘Educate Girls’ programme, mostly focused in
the rural regions of India.
4. 9,550 coconut farmers enrolled under the ‘Parachute Kalpavrikasha’ programme thus
cumulative enrolment of 21,043 farmers in total.

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COVID-19 Pandemic

Marico steps up to aid India in its fight against COVID-19

As India combats the unprecedented global pandemic, Marico Limited extends support to the
government, citizens, support workers and medical fraternity. With the rapidly escalating
spread of COVID-19, it is imperative for every member to come together and unite their
efforts towards providing relief to all affected communities. Living by the ethos Marico was
built on to ‘make a difference’; our resources and efforts are directed towards multiple
stakeholders.

Commenting on this situation Saugata Gupta, Managing Director and CEO, Marico Limited
said, “At Marico, community sustenance has been at the core of our business for last three
decades. As we stand united against COVID-19, we extend our support to the communities
we live in and to the front-runners in this battle – medical professionals, the police force,
primary healthcare workers, emergency services staff and fellow citizens who have been
worst affected in this crisis. We are ably supported by our own heroes including our
manufacturing teams, supply chain teams, our distribution partners and sales teams. We have
increased the safety measures and adopted necessary precautions to keep these heroes safe,
who are working tirelessly in their attempt to deliver essential products to our consumers
safely in compliance with the government guidelines. We salute their perseverance and thank
them for making a difference.”

Our outreach in this fight against COVID-19 encompasses several areas to which we have
committed an initial outlay of INR 8 Crore.

#MaricoUnitedAgainstCovid19

Safety and Hygiene Kits:

With a commitment to safeguard lives of those who are fighting the battle on ground –
primary healthcare workers, the police force and emergency services staff we are providing

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them with personal protective equipment like face masks, sanitizers, hand wash,
thermometers etc. The distribution of these kits has already begun in Mumbai and in Jalgaon
(Maharashtra) as we continue to expand our reach to include more beneficiaries across
multiple states. We also plan to partner the government in its rehabilitation initiatives.

Meals program:

In partnership with various government agencies we are providing meals and dry rations for
migrant labourers, the police force, and health-workers, poor and elderly people during this
time. We are working with CII and FICCI under the able guidance of Ministry of Consumer
Affairs and other Government authorities for this initiative. We have also partnered with
Swiggy and Zomato to deliver these meals. The meal delivery has commenced in Mumbai
and dry rations are being provided in Thane District, Aurangabad (Maharashtra) and Baddi
(Himachal Pradesh) as we work together with various industry bodies and our partners to
scale up the delivery of meals and dry rations across multiple states.

Contribution to PM Care Fund

As the government continues its valiant efforts to fight the pandemic, Marico also pledges
contribution to the PM Care Fund.

#Innovate2BeatCOVID challenge

With an aim to support our medical infrastructure, Marico Innovation Foundation (MIF) has
launched a unique, nationwide platform called #Innovate2BeatCOVID. It invites med-tech
entrepreneurs, corporates and innovators to share existing cost-effective and innovative
solutions to combat short supply of ventilators, personal protective equipment and other
respiratory solutions that can aid the medical fraternity. As the pandemic progresses, the
dynamic grand challenge may expand to other items of critical need in consultation with
medical experts. Marico Innovation Foundation along with the A.T.E. Chandra Foundation
and Harsh Mariwala in his personal capacity will offer total grants worth INR 2.5 Crore to
the most impactful innovations. The challenge has received an overwhelming response with
1000+ applications. After great line of competition on the innovation there came out five
organisation that created sustainable, cost effective and ‘built-for-India’ innovations. And the
most interesting is that they began working in their solutions only after COVID-19 crisis
broke out using quick thinking and agility to deliver solutions for emerging problems. The

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five winning organisations were Shreeyash Electro Medicals, KPIT Technologies, Nocca
Robotics, CREA and Saral Design Solutions.

Supporting Each Other

Marico members are united in the fight against COVID-19 in this hour of need. We have
together created a fund through voluntary member contributions aided with equivalent
contribution from Marico Limited, through which we will help the front-line teams of our
business partners who are working on-ground ensuring the availability of essential Marico
products to consumers. Apart from securing them with personal protective equipment, they
will be given extra monetary help under “COVID Assistance”. In addition to this, in the event
of any person being detected positive with Covid-19 and hospitalized, Marico will provide
medical assistance.

Members at the manufacturing facilities

As we continue to adhere to all Central and State Government guidelines and orders in
carrying on our operations, our manufacturing teams are working to the best of their abilities
to make available the much-needed essential products to consumers. Apart from personal
protective equipment and increase in the frequency of disinfection and fumigation, we have
established strict social distancing measures and have implemented mandatory thermal
scanning. Entry and exit from the plants during shift timings are demarcated to avoid
gathering of members at the gate. Minimum two metres distance is maintained between each
of the work stations. Additionally, each site has identified a dedicated isolation room with
necessary facilities.

This is a difficult time for most nations across the world, with this health crisis affecting
hundreds of thousands of people and has impacted the global economy. In this hour of need
we are stepping up to make a difference to our people, our partners and citizens alike. Above
all we are committed to serve our consumers to the best of our abilities with products which
are essential to them safely and securely.

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14
Product Portfolio

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 Parachute

Hair oil Nihar

Hair & Care

Hair care

Livon
Premium Hair
Nourishment
Hair & Care

Refined edible oil Saffola

Nutrition & Food
Healthy foods Saffola
Marico India

Kaya Youth
skine care
Parachute Advansed
Skin care
Medikar
Hygine
Veggie Clean
Set Wet
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Male grooming and
style Beardo
 Parachute men after
shower Hair craem

Advansed hot oil

Gold coconut hair

oil

Aole vera enriched

coconut hair oil
P ara ch u te

Jasmine coconut
hair oil

Ayurvedic hair oil

coconut hair oil

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 Natural
coconut oil

Natural Uttam
coconut oil

Shanti Badam
Amla HAir Oil
N ih a r

Shanti Sarso
Hair oil

Shanti Jasmine
Coconut Hair
oil

Perfumed
Coconut Hair oil

Gold Coconut
Hair Oil

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 Olive and Vitamin E
Hair & care

Dry Fruit Oil

Premium
Hair
Nourishment

Livon Hair & care

serums silk n shine
Range leave-in-hair
conditioner

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 Saffola
active

Saffola Gold
Saffola
Premium
Refined Edible
oil
Saffola tasty

Saffola total
Nutrition &
Food

Saffola Oats

Saffola
Masala Oats

Saffola Perfect
Healthy Nashta
Food

Coco Soul
Virgin Coconut
Oil

Saffola FIFTY
Gourmet Range

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 Oxy infusion
Range

Kaya Youth
Hydro
Replenish
Range
Skin care

Body
Lotion

Parachute Body Gel

Advansed

Body Oil

Mediker Hand Sanitizer

Hygiene

Veggie Clean

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 Hair Gel

Hair Wax

Set Wet

Deodorants
Male Grooming &

Studio X
Styling

Range

Beardo

Parachute Advansed
Men After Shower
cream

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Shareholders

Growing with strong fundamentals

Marico’s constant endeavour is to maximise shareholders value by delivering sustainable

profitable growth and expanding our consumers franchise through steady market share gains.
Therefore, we allocate the pool of funds entrusted by our investors towards innovation, brand
building, capability enhancement and expanding distribution footprint in extreme conditions
of pandemics. We were not ready to compromise on our strategies of creating value instead
we improvised our way of doing the business, also consistently and effectively reaching and
meeting the needs of our consumers in the new normal.

Financial Performance

In FY 2021, Marico achieved a consolidated turnover of ₹ 8493.50 Crore, 16% higher than
the previous financial year and consolidated PAT of ₹ 1553.09, 49%. The operating margin
stood at 27.17%, up 700bps from last year. Our dividend pay-out ratio for the year was at
96%. Having maintained a healthy operating performance, both Return on Capital Employed
(ROCE) and Return o Equity (ROE) improved to x% and y% respectively.

Key Performance Indicators

Key Financial Capital Inputs FY21 FY20

Debit/EBITDA 0.17 0.23
Investment in brand building-ASP to sales (%) 10.7 9.9
Capital expenditure (in ₹ Crore) 299 194
Key Financial Capital Outputs FY21 FY20 Changes
Revenue from operations (in ₹ Crore) 8493.5 7315 16.11%
0
EBITDA (in ₹ Crore) 2293.1 1469 56.09%
EBITDA (%) 26.9 20.1 680bps
Profit after tax excluding one-offs (in ₹ Crore) 1553.0 1043 48.90%
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Basic EPS 11.8 7.91 3.89
Return on capital employed (%) 58.5 42.4 37.97%
Return on equity (%) 46.6 34.0 37.05%

Value Creation

Our Pillars of Value Creation

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  Resources we depend upon to create value
 Financial
 Human
 Manufactured
 Social & Relationship
 Intellectual
 Natural
 Stakeholders we rely on and create value for
 Consumers
 Value-chain partners
 Shareholders
 Government & Regulators
 Employees
 Community
 Strategic pillars
 Grow the core
 Create shared value
 New growth engines
 Strategy enablers
 Business and Go-to-Market models
 Product innovation
 Technology and automation
 Cost management
 Talent and culture
 Mainstreaming Sustainability

Key issues that impact value-creation

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Materiality assessment is an important tool for Marico to identify and prioritize issues that are
prime importance to our business as well as to our stakeholders. It helps us align our business
strategies to various risks and opportunities and influence our ability to create value in the
short, medium and long terms. We started this FY18, which enabled us to identify key issues
that impact our performance. In FY 21, we reviewed the top quartile material issues in the
new normal conditions, also the recent changes in the business and regulatory landscape.

Top quartile material issues:

1. Responsible resource consumption (energy and water)

2. Climate change (GHS emissions)
3. Circular economy- Sustainable packaging (considering the focus on plastics and its
waste management by the regulatory and social system)
4. Sustainable supply chain (Responsible sourcing)
5. Community development (Farmers)
6. Product responsibility (Consumer health and safety)
7. The new normal (Dealing with Covid-19 pandemic)

Materiality

Materiality assessment is an important tool for Marico to identify and prioritise issue that are
of prime importance to their business as well as to stakeholders.

 It helps to align business strategies to various risks and opportunities.

 It helps to influence ability to create value in the short, medium and long term.

For Marico, material issue is those that may have an impact directly or indirectly, on their
ability to generate and sustain economic, environmental and social value. They periodically
evaluate material issue to introspect as well as shape the future course of action. Marico had
undertaken a materiality assessment exercise in FY18 and in FY20 they reviewed the top
quartile material issue.

Top Quartile material issues: -

Marico identify and categories three types of material issues

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 1. Environment: - Responsible resources consumption (material, energy and water),
climate change (emission and waste), sustainable supply chain.
2. Circular economy: - Sustainable packaging
3. Social: - Product responsibility, community development

1. Environment

Energy: - Marico have achieved 32% reduction in energy intensity from FY13.

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

88.6

86.9

72.2

72.1
71.4

70.8

63.8

60.2
en er gy i n t en si t y t r en d s

Marico focused on to reduced dependency on fossil fuel and increase use of clean and
renewable energy. Due to use of renewable energy company have recorded 91% of reduction
in the use of fossil fuel from that of FY13. In 2020 Marico plant used 85% of total energy is
form of renewable energy.

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 India operations: Energy mix(%)

79%
73%

16% 17%
10%
5%

FY20 FY19

Water: - Water is a critical natural resource. For Marico, with a host of agro-based
(renewable) raw material and products, hence water availability is crucial to ensure
sustainable supply of input material. They adopt a 3R approach (reduce, reuse and recycle)
for effective water management. Marico has recorded 31% reduction in water from 2014. In
FY19 86% of raw material consumed in Marico product manufacturing are agro-based. In
FY20 with ‘Jalaashay initiative’ Marico have been able to create 700 million litres of
additional water harvest potential that equivalent to 3.4 times of water use in their operation.

FY14 FY15 FY16 FY17 FY18 FY19 FY20

52.2

45.8

45.7

45.4
44.7

38.3

35.9

I n d i a o p e r a ti o n : w a t e r i n t e n s i t y

Climate change: - Climate change is a serious global concern and Marico is committed to
respond to the challenge. Marico targeting to reduce 75% of Greenhouse gas emission
intensity by 2022.

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 FY13 FY14 FY15 FY16 FY17 FY18 FY20

7.4

4.4

3.6

3.6
3.6

3.4

3
G H G i n t en si t y (t c o 2 , p er u n i t c r o r e r ev en u e)

Sustainable supply chain: - Marico has distinguished itself by integrating sustainability into
all categories of sourcing, whether materials or service. In FY19 they launched ‘Project
Flash’ to enhance their service through an agile supply chain. The main objective of
launching this project was to ensure quick reach of products to the destination by reducing
number of intermediate points, result 30% reduction in transit time. Marico have made a
steady headway on the ‘responsible sourcing’ initiative, the programme evolved into a larger
initiative as ‘SAMYUT’. They follow three stage, progressive approach under SAMYUT that
is: - Educate-Evaluate-Evolve, to engage with critical value chain partners. Marico believe
that extending sustainability will help foster innovation and meet evolving consumer
preference, beside realising their goal of delivering inclusive growth. 20% of total critical
value-chain partners certified on educate level 1 of responsible sourcing. In FY20 22% of
critical value-chain partners certified on level 1 of responsible sourcing.

Value-chain partner of Marico: -

1. Suppliers/Vendors: - 95% of procurement by spend in India during FY20 was on local

suppliers. Marico initiate supplier relationship management (SRM). They reward
suppliers with business share, who bring value in terms of service level performance,
quality systems and cost competitiveness. Marico believe in value of excellence, bias
for action, boundarylessness, innovation, transparency and openness.
2. Converters: - Converters or third-party manufacturers are the business associate for
Marico, those transform finished products into package finished good to be delivered

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 to the consumers. Marico endeavour is to established better synergies leading to long-
term mutual benefits. Marico accomplished acclaimed food safety certification and
recognitions for their convertors to establish them as best-in-class facilities.
3. Depot and warehouses: - Marico focus on best-in-depot and warehousing capabilities
by consistently improving their performance standard. For maintaining the depot and
warehousing standard they initiate a certification programme ‘Kaun Banega
Champion’, this programme has set a benchmarking standard in the industry.
4. Logistics and transportation: - Marico has constantly provide opportunity to start-up
transportation partners such as Blackbuck, Rivigo and Delhivery. Their business share
with these partners has increased from 9% in FY16 to 63% in FY20k.

2. Circular economy

Sustainable packaging: - Packaging plays an important role in maintaining product

integrity. Packaging design lends a signature identity to their brands. Packaging at Marico is
critically appraised through the lens of design, materiality, manufacturability and consumer
preference to keep sustainability at the core. In FY19 Marico use 94% of packaging material
are recyclable by weight and that increase in FY20 to 95%. For sustainable packaging
portfolio and continuous improvement, they launched UpCycle programme in FY20. Marico
has long been working on minimizing the volume and weight of its packaging. This hassled
to saving of about 40 MT of polymer in FY19 and 8,41,000 kg of packaging material in
FY20. In FY19 Marico decided to replace PVC with PET in hair oil product. They restricted
the PVC consumption to 0.4% of the total packaging material used in FY19, reduced to 0.14
% in FY20. Marico committed to eliminate PVC in packaging by 2022.

Marico became member of ‘Un-plastic collective’, an initiative co-founded by CII, UN

Environment and WWF to minimize the externalities of plastic on ecological and social
health of planet. It also partnered with several agencies and NGO with an aim to build
awareness among consumers about plastic waste handling. Marico has undertaken the
Extended Procedure Responsibility (EPR) towards collection and safe disposal of post-
consumer non-recyclable waste. They carried out the activity across several state in India
along with approved agency partners. During FY20 they completed the collection and safe
disposal of 7,73,000 kg of non-recyclable plastic waste.

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3. Social

Community development: - Marico build and maintain a harmonic relationship with the
local community and working towards their upliftment. Their flagship programme
KALPVRIKSHA, doubled the income of coconut farmer established on World Coconut
DAY on September 2, 2017. They give training to coconut farmer about farm management
like nutrient management, pest management, disease management and water management.
More than 21043 farmers have enrolled under their training programme.

FY Farmer %increase in
enrolled productivity
2017-18 2681 18
2018-19 9119 16
2019-20 9550 15

Through this programme Marico enrolled farmer and provide them on-field support for
implementing the right farming practice. They interact with farmer on regular basis and
monitor their farm and evaluate outcome leading to increased farm yield and farm input
optimisation.

Product responsibility: - Marico understand the needs of local people as well and provide
basic needs, develop school, hospital, toilets neighbouring their factory premises.

The new Normal: The COVID-19 pandemic was serious challenge for us over come in order
to deliver the value to our customers. We took all the precautions and instilled our mind
worked through this adverse situation to deliver the superior value to our stakeholders. We
came up with different programs in this pandemic to reach out to consumers and serve them
accordingly by following all norms of COVID-19.

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Consumers
Value for consumers

With our uncompromising quality, trusted brands and product innovations, we

endeavor to provide a unique value proposition to our consumers. The brands differentiate
itself across the core and aspirational market segments. While we strive to bring innovation in
every facet of our operations, availability of products to our consumers at the right time and
for the right price is never compromised.

Differentiating factors for consumers

I. Affordability -: There is so much of volatility and affordability of core offerings such

as coconut oil, refined oil and value-added hair oils. Value generation through cost
optimization has been ingrained in the cultural dna of marico, and the benefit is
passed onto our consumers through affordable and fair priced products.
II. Availability -: There are around 5.0 m retail outlets serviced by our nationwide
distribution network comprising 4 regional offices, 26 carrying & forwarding agents
(cfas) and about 5,600 distributors and stockists. The network almost every indian
town with population over 5,000.
III. Product experience -: There are a lot of quality inspection and product experience
through reinventing product formulation, packaging or format to suit modern
consumer lifestyles and provide the desired experience. Parachute advanced coconut
crème oil, livon shake and spray serum and nihar extracare hair fall control oil are
some recent examples.
IV. Early innovations & new segments -: Marico stays ahead of the curve with
disruptive innovations across categories that address evolving needs of consumers by
catching on to early trends in the market, in addition to meeting nuanced expectations
of discerning consumers. Parachute coconut crème oil, saffola fittify gourmet range,
coco soul range and true roots are some steps in this direction. Set wet studio x
focuses on male grooming and styling products to expand the market catering to the
style conscious urban male.
V. Purposeful brands -: many reasonable and proposed brands meet the Marico’s
commitment to beauty, wellness and society. For example, nihar naturals shanti
badam amla holds the cause of children’s education close to its heart. Saffola has

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 always encouraged people to take the right steps towards a healthy heart and a healthy
lifestyle.

Marico has taken important opportunities to enhance consumer experience through

campaigns in INDIA and abroad.

In India
Marico's Parachute Advanced had launched its new emotive campaign to forge a new deeper
connect with women.
Here the campaign captures hair as an important part on women’s life.
It builds on modern beauty imagery as well as real life instances where hair is fundamental to
the expression of human emotions and frame of mind. It goes to depict several women whose
hair symbolises resilience love freedom determination happiness motivation hope and
optimism.

Saffola Lite –
Also, under Marico has always championed the cause of heart health with a vision to create
the heart healthy India. The digital first campaign has kick started with the set of 2 digital
firms that portray a very common life style of facts and depict them in a single yet in an
impactful manner. They did not stop at providing awareness but also launched an online tool
called Saffola heart .com with the help of various cardiologists.
The initiative was supported by an exhaustive research conducted in the top cities of India.
In partnership with Nielsen and SRL labs which highlighted interesting statistics on lifestyle
behaviours. The study was done under the guidance of various cardiologists and nutritionists.

NIHAR SHANTI AMLA-

On the occasion of INTERNATIONAL Literacy Day on 8th September Nihar Shanti Amla
launched a national programme called Phone Uthao India Ko Padhao. The programme is
aimed at providing basic English-speaking skills to under privileged children by connecting
them to adult volunteers need to register online and take out 10 minutes of their time for a
phone call to help these children practice spoken English remotely.

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NIHAR SHANTI PATSHALA FUNWALA
During the COVID-19 pandemic as school remained shut for months the programme named
NIHAR SHANTI PATSHALA FUNWALA announced to ensure continuation to learn
English by using phones. The Pathshala Funwala App launched available free virtual classes
from classes 6 to 10 with modules offering complete school curriculum for CBSE, Uttar
Pradesh State Board and NIOS (National Institute for School Opening).

Moreover, outside India parachute was also successful in launching products outside India in
countries like Bangladesh and Vietnam

In Bangladesh

Product named Studio X was launched in Bangladesh in January 2020 with a full range of
products for men who are style conscious and aware of trends such as grooming and
impression. It is the first international male grooming product line of Marico Bangladesh
Limited. It comprises of shampoo, facewash, hair gel soap and deodorant for men. The brand
had launched a website named www.studiostyle.com for the style conscious men of
Bangladesh. The website has been designed for information
On grooming and styling of men today's male consumer segment is more aware than ever of
their appearance and have specific and differentiated grooming needs. It aims to cater the
needs to their target audience. Studio X products focus on grooming and styling products
with specific focus on men.
Parachute also launched SkinPure with a promise to provide healthy and beautiful skin,
harnessing the goodness of natural ingredients. Its differentiated value propositions.
Beauty through goodness of nature was delivered through TVC besides print and digital
media with the intent of communicating with customers all year around. This built a solid
foundation for Marico as we entered the skin category with SkinPure.
During the COVID-19 pandemic a brand of hygiene was launched in April 2020 in response
to the immediate need of hygiene products in the market. With pandemic having entered the
country most brand operating in the hygiene space had run out of the market. Medikar a
subsidiary of Marico launched Medikar Safe line range of products for a social cause by
providing safety with its category products and promising to donate all profits from the safe
to the honourable Prime Minister's Relief fund to support the COVID-19 affected victims.

33
With quick acting Sanitizer and Handwash assuring safety the brand has been received in the
very first month of Launch and also has created space in the category.

34
Employees

Employees situation during COVID-19 situation

Marico's engagement survey showed average engagement score of 96%within 4 weeks the
index value was first 93% but it has shown 4 % increase.

Leveraging technology to engage

Marico's my voice is a controversial bot which engages with frontline sale members on a
periodic basis. The average engagement across frontline is 76% in India. Marico has been
successful for extending in Bangladesh business. The effective usage of technology helps
deep dive and analyse member sentiment.

Digital transformation training

Building digital skills of the members are central to the agenda of building leaders in the
future. With a nine month long running plan facilitated by external experts’ teams have been
tasked for digital experiments for our brands. They are learning various aspects of dynamic
environment be intact media assessment in terms of media effectiveness adoption of new
techniques in trend spotting context planning or data driven market approaches.

Creating a future ready talent

We encourage members to refer professionals from their network and get rewarded for every
successful material .36% of vacancies at mid level management have been through referrals
resulting in faster hiring closers and direct cost savings.

Alternate hiring

Marico has leverage job portals like Naukri IIM jobs and social media platforms such as
Facebook to reach out prospective talent that is not actively seeking a job change. We have
reached out to them through Institute alumni groups.

STAMP (Summer Training at Marico's place) The summer internship programme at Marico
is one of the sources of talent from premier business schools .It is indeed our pride that some
of the successful members have joined summer trainees and contribution over their years .It
is a testimony to our success of our Stamp Programme .With stamp students tend to work on
challenging and enriching projects.

35
Value Chain Partners

One who supported us in this adverse situation

of COVID-19 pandemic inn delivering the
value.

36
Value Chain Partners

Procurement is a strategic function at Marico. It is crucial for our suppliers to realis our
objective of long-term sustainable growth as well as our efforts to drive the growth of the
local economy. Hence, the supplier Relationship Management (SRM) strategy at Marico
operate with the philosophy of creating win-win relationships. In this COVID -19 situation
they stood aside us helping us to deliver our value to consumers. During the lock down
period in the India we had to improvise our manufacturing, warehousing and supply
management process according to norms of covid-19 in order to overcome the difficulties of
the adverse situations, all of these our partners supported us all the possible ways to run the
show.

Vendor development and supply assurance

The sourcing team at Marico constantly strives to develop new vendors to ensure supply
assurance. We have suppliers across various regions, who are able to consistently provide us
with the required ingredients and packaging materials. The sourcing team explores and on-
boards newer vendors from local as well as unexplored geographies. In the process , we have
done pioneering work in sourcing the commodities from new vendors, thereby contributing to
the overall business and category growth at large.

Encouraging local procurement

We encourage and take efforts to source materials locally. We have over 700+ suppliers, and
95% of the procurement by spend during 2020, was on local suppliers. We believe that focus
on local procurement will help reduce the carbon footprint of our product and also encourage
local economic development.

Quality within supply chain

The procurement and central quality assurance team at Marico jointly drives the Supplier
Quality Assurance (SQE) Programme , which aims at identifying specific training and
development needs at our suppliers’ end. Improvement project are then identified and
executed by ascertaining the right degree of ‘responsibility’ and ‘accountability’, both at
Marico and the supplier’s end.

37
Rewards and recognitions
As part of our SRM strategy, we reward suppliers with appropriate business share for those
who bring value in terms of service level performance, quality systems and cost
competitiveness. Further, suppliers exhibiting exemplary performance, in line with the
Marico values of excellence, bias for action, boundarylessness, innovation, transparency and
openness, are recognise across various fora like Supplier Quality Excellence (SQE),
SAMYUT, and vendor meets, among others.
Convertors or third-party manufacturers are the business associates for Marico, crucial in
transforming our products into packaged finished goods to be delivered to the consumers. It
is Marico’s shared vision to co-work with our convertors towards upgrading to best in class
facilities to make products that consumers can trust. We constantly collaborate with our
convertors with respect to technology, quality system, process efficiency, operational
excellence and environment initiatives. Our endeavour is to establish better synergies leading
to long-term mutual benefits.
As part of our continuous quality systems improvement journey, we are determined to
accomplish acclaimed food safety certification and recognitions for our convertors to
establish them as best-in-class facilities. We constantly work together and support our
convertors in areas like system and process changes, capability building of internal teams and
also modifying infrastructure requirements. These interventions demonstrate our focus on
delivering the right quality and safe products to our consumers.

Logistics & transportation

Our aspiration is to create a supply chain system that is agile, cost competitive and
sustainable, thereby leading to customer delight. Our logistics team drives various initiatives
at each node to ensure that our distribution network is constantly evolving across – service,
cost and sustainability.

Transporter Excellence Awards

During FY20, we instituted half-yearly transporter excellence awards to reward the top
performing transport partners. The performance is evaluated on multiple aspects such as
placement performance, transit performance, innovation focus, commercial compliance as
well as cost and efficiency enhancement. The best performers will be recognised with an
award on a half-yearly basis.

38
39
Risk management

Managing risks judiciously

In a vuca (volatility, uncertainty, complexity and ambiguity) environment, it becomes

most important to ensure effective risk management. Risks are an integral part of any
business environment, and it is essential that we create structures and processes that are
capable of identifying and mitigating risks consistently. For Marico, risks are multi-
dimensional, and thus, they need to be looked at in a holistic manner, straddling the external
environment and internal processes. If upside risks are mitigated well, it could lead to
business opportunities. Similarly, if downside risks are not addressed adequately, it could
lead to reputational issues. That’s why Marico’s risk management process envisages that all
significant activities are analysed across the value chain, keeping in mind the following types
of risks:

1. Business risks
2. Financial & governance risks
3. Operational risks

Risk management plan

I. Identify - identify top risk for each function/business unit level.

II. Quantify - rate the risks on ‘impact’ and ‘vulnerability’ factors.
prioritize top 10 risks at the company level.
III. Mitigation plan - develop mitigation plan for each risk with relevant measures and
result
i. metrices.
- recommended the plan to the board for approval.
IV. Implement - implement the risk mitigation plan.
V. Monitor - examine whether the mitigation plans are on track.
- periodically review the existing risks and related metrices.

40
Risks and concerns

Changing consumer preferences

Demand can be adversely affected by a shift in consumer preferences. Given the explosion of
social media, the speed of such shift could be very swift.

Marico invests significantly in consumer in- sighting to adapt to changing preferences. The
company also actively watches the social media trends to spot early trends in consumer
preferences. Marico has also introduced ‘mariscope’, a consumer connect initiative for its
members. With mariscope, the company wishes to move a step closer towards understanding its
consumer base, knowing them better and strengthening relationships.

Strategic response-:

1) Investment in consumer in sighting to adapt to changing consumer preferences.

2) Actively monitor social media trends to spot early consumer trends; quickly respond
to these trends with innovative offerings.

Input costs

Unexpected changes in commodity prices can impact margins. The past few years have
witnessed wide fluctuations in the input materials prices. As a result, the overall level of uncertainty
in the environment continues to remain high.

However, brands with greater equity and pricing power may find it easier to adjust prices when
the input prices increase and hold prices when the input prices decline. Your company’s brands
enjoy a significant equity with its consumers and thus holds adequate purchasing power.
Your company has also been investing behind significantly enhancing its forecasting capabilities.
The initiative of ‘kalpavriksha’, which aims at doubling the income of coconut farmers over the
medium-term, will help supply assurance for the key commodity, which is copra.

Strategic response-:

1) Invest in forecasting capabilities.

41
 2) Ensure supply assurance of key commodities through farmer engagement
programmes.
3) Build strategic positions as a hedge against price volatilit

Macroeconomic factors

In situations of economic constraints, items that are in the nature of discretionary spending are
the first to be curtailed. Factors such as low GDP growth and high food inflation can result in
down trading from branded to non-branded or premium to mass market products.

The company continuously drives towards making its value-added products available to masses at
affordable prices. Low unit packs in value-added hair oils is an attempt in this direction. Portfolio
diversification, which is one of the pivots of future.

Strategic response-:

1) Focus on value-added products available to masses at affordable prices by driving

aggressive cost management.
2) Focus on franchise growth in p-references to short-term profitability.
3) Portfolio diversification, which is one of the pivots of future.

Political risks

Unrest and instability in countries of operation can significantly impact the business. Marico
operates in the developing and emerging economies of Asia and Africa and is exposed to
political risk and unrest in these markets. However, the company operates with well-defined risk
management policies to mitigate various risks. It also moderates its growth aspirations depending
on the geopolitical scenario.

Strategic response-:

1) A comprehensive insurance programme to hedge all those risks that are insurable.
2) At a macro level, our country selection template emphasizes geopolitical stability and
robust growth.

Competition

42
Increase in the number of competing brands in the marketplace, counter campaigning and
aggressive pricing by competitors have the potential to create a disruption.

In the last few years, Marico has entered categories such as mass skin care, healthy foods, hair styling,
post-wash leave-in conditioners, deodorants and hair colours where the competitive intensity is
relatively higher as compared to the segments it has been operating in hitherto, such as coconut
oil, hair oils and refined edible oils.

Renewed focus on Ayurveda/ naturals/ Indian by a few new players has brought in different
competitive dimensions in Marico’s core portfolio.

The company believes that healthy competition is good for businesses as it focuses management
attention on offering its consumers differentiated high-quality products that address their needs. With
this approach, the company expects to win and retain its consumer franchise. The company also
focuses on protecting volumes in preference to short-term profitability. Further, the company
focuses on being nimble-footed so that scarce resources can be deployed towards brand building
and sales infrastructure. Finally, the company is committed to investing commensurate resources for
brand building to build a moat against the competitive threat.

Strategic response-:

1) Diversification in product offerings (entered into categories such as healthy foods,

skincare, haircare).
2) Product volumes in preference to short-term profitability.
3) Invest in brand building.
4) Agile response mechanism to counter competitive moves.

Product innovations & new product launches

Success rate for new product launches in the fmcg sector is typically low. New products may
not be accepted by the consumer or may fail to achieve the sales target. This risk is even more
pronounced in cases where industry leaders invest behind creating new categories.

Marico has adopted the prototyping approach to new product introductions that helps maintain a
healthy pipeline and at the same time limits the downside risks with its fail-fast approach. The
company has also upped its efforts to identify and invest behind big-ticket new ideas in its
chosen categories for driving growth.

43
Strategic response-:

1) Invest in a new product development process with a funnel approach to introduce new
products over time.
2) Prototyping approach to new product introductions to maintain a healthy pipeline.
3) Identify and invest in big-ticket new ideas in the chosen categories for driving growth.
4) Resilient presence in marketplace with adequate investments in brand building.

Foreign currency exposure

Marico has a significant presence in Bangladesh, south east Asia, middle east, Egypt and south
Africa. The group is therefore exposed to a wide variety of currencies such as the us dollar, south
African rand, Bangladeshi taka, UAE dirham, Egyptian pound, Malaysian ringgit, Myanmar
chats and Vietnamese dong. Import payments are made in various currencies, including, but not
limited to, the us dollar, Australian dollar and Malaysian ringgit.

Significant fluctuation in these currencies could impact the company’s financial performance. The
company is, however, conservative in its approach and uses plain vanilla hedging mechanisms.

Strategic response-:

1) While the ‘translation risk’ will continue to be unhedged, Marico has a well-defined
hedging framework for managing any foreign exchange risk.
2) The board-approved policy in this regard is periodically reviewed for its effectiveness.
 Funding costs

Though the fmcg sector is not capital intensive, fund requirements arise on account of inventory
position building, capital expenditure undertaken or funding inorganic growth. Changes in the
interest regime and in the terms of borrowing will impact the financial performance of the group.

The group maintains comfortable liquidity positions, thereby insulating itself from short-
term volatility in interest rates.

Strategic response-:

1) Well-defined framework for capital gearing.

2) Maintain a liquidity chest for immediate working capital requirements.

44
 3) In case of foreign currency borrowings, implement hedging as per policy.
4) Manage interest rate risk to investments; implement board-approved investment
policy.

Acquisitions

Acquisitions may impose a financial burden on the parent entity or expose the company to
country-specific risks. Integration of operations and cultural harmonization may also take time,
thereby deferring benefits of synergies of unification.

Marico has been able to integrate its acquisitions with the mainstream with focus on talent and
processes. Given its comfortable liquidity position and conservative capital management practices, the
acquisitions have not put any significant pressure on the financial position of the group. Further,
the company is more focused on organic growth. This implies that it will adopt a more
opportunistic approach towards acquisitions.

Strategic response-:

1) Define key performance indicators to evaluate the success of acquisition.

2) Set a monitoring process to review progress periodically.
3) Apply governance practices of the parent organization immediately to ensure controls.
4) Resource acquisition plans ahead of the curve.

Private labels

Expansion of modern trade can lead to the emergence of private labels. While the risk of
private labels has been low in India, this can change quickly with e-commerce gaining traction in
urban India.

The company invests commensurate brand- building resources to improve the saliency of its
brands in the consumers’ mind. This is expected to provide the necessary hedge.

Strategic response-:

1) Invest in brand building to improve the saliency of our brands in the consumer’s mind
and partner with modern trade and e-commerce in category management.

45
Talent acquisition & retention

Inappropriate hiring and inability to retain top talent may result in a firm’s inability to pursue its
growth strategies effectively. Marico invests heavily in ‘hiring right’ and ‘talent development
and engagement’. This helps provide fulfilling careers to the members in marico. Marico has
identified having a robust talent value proposition as one of the transformation areas to drive
sustainable growth over the long run. A detailed update has been provided in earlier
paragraphs.

Strategic response-:

1) Marico’s culture of openness, transparency and meritocracy helps attract top talent.
2) Marico’s talent value proposition of building challenging, enriching and fulfilling
careers is aimed at retaining top talent.
3) Invest in ‘hiring right’ and ‘talent development and engagement’ best practices.

Compliance

Inadequate compliance systems and processes pose a reputation risk for an organization. They
may result in financial losses and penalties.

Over the years, Marico has built a high-governance culture across the organization with appropriate
policies, processes and controls. Marico has invested in compliance systems and processes to
ensure that all its functions and units are aware of the laws and regulations to comply with and
that an adequate monitoring mechanism is put in place to ensure compliance.

Strategic response-:

1) Invest in compliance system and processes.

2) Ensure all functions and units are aware of the laws and regulations to comply with.
3) Ensure adequate monitoring towards compliance.
4) Communicate periodically to reiterate the importance.

46
47
Financial Statements
Consolidates Balance Sheet as 31st March 2021
  March’ 21 March’20
EQUITIES AND LIABILITIES ₹ Crore ₹ Crore
SHAREHOLDER'S FUNDS    
Equity Share Capital ₹ 129.00 ₹ 129.00
Total Share Capital ₹ 129.00 ₹ 129.00
Reserves and Surplus ₹ 3,103.00 ₹ 2,869.00
Total Reserves and Surplus ₹ 3,103.00 ₹ 2,869.00
Employees Stock Options ₹ 28.95 ₹ 25.00
Total Shareholders’ Funds ₹ 3,260.95 ₹ 3,023.00
Minority Interest ₹ 15.00 ₹ 13.00
NON-CURRENT LIABILITIES    
Long Term Borrowings ₹ 5.63 ₹ 10.00
Deferred Tax Liabilities [Net] ₹ 1.03 ₹ 6.00
Other Long-Term Liabilities ₹ 228.34 ₹ 165.00
Total Non-Current Liabilities ₹ 235.00 ₹ 181.00
CURRENT LIABILITIES    
Short Term Borrowings ₹ 371.29 ₹ 325.00
Trade Payables ₹ 1,141.24 ₹ 978.00
Other Current Liabilities ₹ 588.13 ₹ 424.00
Short Term Provisions ₹ 58.33 ₹ 58.00
Total Current Liabilities ₹ 2,158.99 ₹ 1,785.00
Total Capital and Liabilities ₹ 5,669.94 ₹ 5,002.00
ASSETS    
NON-CURRENT ASSETS    
Tangible Assets ₹ 901.00 ₹ 817.00
Intangible Assets ₹ 32.07 ₹ 41.00
Goodwill ₹ 576.00 ₹ 538.00
Capital Work-In-Progress ₹ 65.00 ₹ 58.00
Fixed Assets ₹ 1,574.07 ₹ 1,454.00
Non-Current Investments ₹ 149.58 ₹ 105.00
Deferred Tax Assets [Net] ₹ 165.00 ₹ 159.00
Long Term Loans and Advances ₹ 25.00 ₹ 20.00
Other Non-Current Assets ₹ 85.14 ₹ 82.00
Total Non-Current Assets ₹ 1,998.79 ₹ 1,820.00
CURRENT ASSETS    
Current Investments ₹ 695.80 ₹ 628.00
Inventories ₹ 1,443.60 ₹ 1,380.00
Trade Receivables ₹ 613.00 ₹ 539.00
Cash and Cash Equivalents ₹ 511.00 ₹ 279.00
Short Term Loans and Advances ₹ 5.75 ₹ 5.00
Other Current Assets ₹ 402.00 ₹ 351.00

48
 Total Current Assets ₹ 3,671.15 ₹ 3,182.00
Total Assets ₹ 5,669.94 ₹ 5,002.00

Consolidated Statement of Profit & Loss as 31st March 2021

  March’21 March’ 20
INCOME ₹ Crore ₹ Crore
Revenue from Operations [Gross] ₹ 8,378.37 ₹ 7,254.00
Less: Excise/Service Tax/Other Levies ₹ 0.00 ₹ 0.00
Revenue from Operations [Net] ₹ 8,378.37 ₹ 7,254.00
Other Operating Revenues ₹ 115.13 ₹ 61.00
Total Operating Revenues ₹ 8,493.50 ₹ 7,315.00
Other Income ₹ 163.56 ₹ 124.00
Total Revenue ₹ 8,657.06 ₹ 7,439.00
EXPENSES    
Cost of Materials Consumed ₹ 3,818.48 ₹ 3,428.00
Purchase of Stock-In Trade ₹ 150.47 ₹ 177.00
Changes in Inventories Of FG, WIP And Stock-In Trade -₹ 71.22 ₹ 140.00
Employee Benefit Expenses ₹ 533.72 ₹ 478.00
Finance Costs ₹ 129.94 ₹ 50.00
Depreciation and Amortisation Expenses ₹ 210.69 ₹ 140.00
Other Expenses ₹ 1,802.53 ₹ 1,623.00
Total Expenses ₹ 6,574.61 ₹ 6,036.00
Profit/Loss Before Exceptional, Extraordinary Items and
₹ 2,082.45 ₹ 1,403.00
Tax
Exceptional Items -₹ 29.00 -₹ 29.00
Profit/Loss Before Tax ₹ 2,053.45 ₹ 1,374.00
Tax Expenses-Continued Operations    
Current Tax ₹ 513.36 ₹ 347.00
Deferred Tax -₹ 13.00 -₹ 16.00
Tax for Earlier Years ₹ 0.00 ₹ 0.00
Total Tax Expenses ₹ 500.36 ₹ 331.00
Profit/Loss After Tax and Before Extraordinary Items ₹ 1,553.09 ₹ 1,043.00
Profit/Loss from Continuing Operations ₹ 1,553.09 ₹ 1,043.00
Profit/Loss for The Period ₹ 1,553.09 ₹ 1,043.00
Minority Interest -₹ 33.09 -₹ 22.00
Share of Profit/Loss of Associates ₹ 0.00 ₹ 0.00
Consolidated Profit/Loss After MI and Associates ₹ 1,520.00 ₹ 1,021.00
OTHER ADDITIONAL INFORMATION    
EARNINGS PER SHARE    
Basic EPS (Rs.) ₹ 11.78 ₹ 7.91

49
 Diluted EPS (Rs.) ₹ 11.78 ₹ 7.91
DIVIDEND AND DIVIDEND PERCENTAGE    
Equity Share Dividend ₹ 1,288.00 ₹ 896.00
Tax on Dividend ₹ 192.00 ₹ 130.00

Analysing Financial Statements

Comparative Balance Sheet of Financial Year 2021 and 2020.

  March’ 21 March’20 Absolute

Change Percentag
EQUITIES AND LIABILITIES ₹ Crore ₹ Crore (Increase/ e Change
Decrease)
SHAREHOLDER'S FUNDS        
Equity Share Capital ₹ 129.00 ₹ 129.00 0 0.00
Total Share Capital ₹ 129.00 ₹ 129.00 0 0.00
Reserves and Surplus ₹ 3,103.00 ₹ 2,869.00 234 8.16
₹
Total Reserves and Surplus ₹ 3,103.00
2,869.00 234 8.16
Employees Stock Options ₹ 28.95 ₹ 25.00 3.95 15.80
₹
Total Shareholders’ Funds ₹ 3,260.95
3,023.00 237.95 7.87
Minority Interest ₹ 15.00 ₹ 13.00 2 15.38
NON-CURRENT LIABILITIES        
Long Term Borrowings ₹ 5.63 ₹ 10.00 -4.37 -43.70
Deferred Tax Liabilities [Net] ₹ 1.03 ₹ 6.00 -4.97 -82.83
Other Long-Term Liabilities ₹ 228.34 ₹ 165.00 63.34 38.39
Total Non-Current Liabilities ₹ 235.00 ₹ 181.00 54 29.83
CURRENT LIABILITIES        
Short Term Borrowings ₹ 371.29 ₹ 325.00 46.29 14.24
Trade Payables ₹ 1,141.24 ₹ 978.00 163.24 16.69
Other Current Liabilities ₹ 588.13 ₹ 424.00 164.13 38.71
Short Term Provisions ₹ 58.33 ₹ 58.00 0.33 0.57
₹
Total Current Liabilities ₹ 2,158.99
1,785.00 373.99 20.95
₹
Total Capital and Liabilities ₹ 5,669.94
5,002.00 667.94 13.35
ASSETS        
NON-CURRENT ASSETS        
Tangible Assets ₹ 901.00 ₹ 817.00 84 10.28
Intangible Assets ₹ 32.07 ₹ 41.00 -8.93 -21.78
Goodwill ₹ 576.00 ₹ 538.00 38 7.06
Capital Work-In-Progress ₹ 65.00 ₹ 58.00 7 12.07
Fixed Assets ₹ 1,574.07 ₹ 120.07 8.26

50
 1,454.00
Non-Current Investments ₹ 149.58 ₹ 105.00 44.58 42.46
Deferred Tax Assets [Net] ₹ 165.00 ₹ 159.00 6 3.77
Long Term Loans and Advances ₹ 25.00 ₹ 20.00 5 25.00
Other Non-Current Assets ₹ 85.14 ₹ 82.00 3.14 3.83
₹
Total Non-Current Assets ₹ 1,998.79
1,820.00 178.79 9.82
CURRENT ASSETS        
Current Investments ₹ 695.80 ₹ 628.00 67.8 10.80
Inventories ₹ 1,443.60 ₹ 1,380.00 63.6 4.61
Trade Receivables ₹ 613.00 ₹ 539.00 74 13.73
Cash and Cash Equivalents ₹ 511.00 ₹ 279.00 232 83.15
Short Term Loans and Advances ₹ 5.75 ₹ 5.00 0.75 15.00
Other Current Assets ₹ 402.00 ₹ 351.00 51 14.53
₹
Total Current Assets ₹ 3,671.15
3,182.00 489.15 15.37
₹
Total Assets ₹ 5,669.94
5,002.00 667.94 13.35

The above comparison of balance sheet of FY21 and FY20 to find out year on year change of
the figures.

1. The Reserves & Surplus as increased by 8.16% and shareholders’ fund by 7.87%. Also
54 crores increase in the non-current liabilities which represents about 30% increase.
2. Increase in currents liabilities represented about 21% compared to the last year.
3. Even in the COVID-19 the company focused to provide at most value to their
customers which is clearly reflected in our goodwill as it increased by 7%. About 13%
increase is reflected in the balance sheet total compared previous year tally.
4. These positives were made only because we didn’t compromise in providing top most
value to customers in these adverse situations.

Comparative Statement of Profit & Loss of Financial Year 2021 & 2020.
Absolute
  March’21 March’ 20 Change Percentag
(Increase/ e Change
INCOME ₹ Crore ₹ Crore Decrease)
Revenue from Operations [Gross] ₹ 8,378.37 ₹ 7,254.00 ₹ 1,124.37 15.50
Less: Excise/Service Tax/Other
₹ 0.00 ₹ 0.00
Levies ₹ 0.00  
Revenue from Operations [Net] ₹ 8,378.37 ₹ 7,254.00 ₹ 1,124.37 15.50

51
Other Operating Revenues ₹ 115.13 ₹ 61.00 ₹ 54.13 88.74
Total Operating Revenues ₹ 8,493.50 ₹ 7,315.00 ₹ 1,178.50 16.11
Other Income ₹ 163.56 ₹ 124.00 ₹ 39.56 31.90
Total Revenue ₹ 8,657.06 ₹ 7,439.00 ₹ 1,218.06 16.37
EXPENSES     ₹ 0.00  
Cost of Materials Consumed ₹ 3,818.48 ₹ 3,428.00 ₹ 390.48 11.39
Purchase of Stock-In Trade ₹ 150.47 ₹ 177.00 -₹ 26.53 -14.99
Changes in Inventories Of FG,
-₹ 71.22 ₹ 140.00
WIP And Stock-In Trade -₹ 211.22 -150.87
Employee Benefit Expenses ₹ 533.72 ₹ 478.00 ₹ 55.72 11.66
Finance Costs ₹ 129.94 ₹ 50.00 ₹ 79.94 159.88
Depreciation and Amortisation
₹ 210.69 ₹ 140.00
Expenses ₹ 70.69 50.49
Other Expenses ₹ 1,802.53 ₹ 1,623.00 ₹ 179.53 11.06
Total Expenses ₹ 6,574.61 ₹ 6,036.00 ₹ 538.61 8.92
Profit/Loss Before Exceptional,
₹ 2,082.45 ₹ 1,403.00
Extraordinary Items and Tax ₹ 679.45 48.43
Exceptional Items -₹ 29.00 -₹ 29.00 ₹ 0.00 0.00
Profit/Loss Before Tax ₹ 2,053.45 ₹ 1,374.00 ₹ 679.45 49.45
Tax Expenses-Continued
   
Operations    
Current Tax ₹ 513.36 ₹ 347.00 ₹ 166.36 47.94
Deferred Tax -₹ 13.00 -₹ 16.00 ₹ 3.00 -18.75
Tax for Earlier Years ₹ 0.00 ₹ 0.00 ₹ 0.00  
Total Tax Expenses ₹ 500.36 ₹ 331.00 ₹ 169.36 51.17
Profit/Loss After Tax and Before
₹ 1,553.09 ₹ 1,043.00
Extraordinary Items ₹ 510.09 48.91
Profit/Loss from Continuing
₹ 1,553.09 ₹ 1,043.00
Operations ₹ 510.09 48.91
Profit/Loss for The Period ₹ 1,553.09 ₹ 1,043.00 ₹ 510.09 48.91
Minority Interest -₹ 33.09 -₹ 22.00 -₹ 11.09 50.41
Share of Profit/Loss of Associates ₹ 0.00 ₹ 0.00 ₹ 0.00  
Consolidated Profit/Loss After MI
₹ 1,520.00 ₹ 1,021.00
and Associates ₹ 499.00 48.87
OTHER ADDITIONAL
   
INFORMATION    
EARNINGS PER SHARE        
Basic EPS (Rs.) ₹ 11.78 ₹ 7.91 ₹ 3.87 48.87
Diluted EPS (Rs.) ₹ 11.78 ₹ 7.91 ₹ 3.87 48.87
DIVIDEND AND DIVIDEND
 
PERCENTAGE      
₹
Equity Share Dividend ₹ 896.00
₹ 1,288.00 392.00 43.75
Tax on Dividend ₹ 192.00 ₹ 130.00 ₹ 47.69

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 62.00

The above table depicts the comparison of Statement of profit & loss of the FY21 and FY20.

1. Net revenue from operations increased about 16% and the total revenue generated was
₹ 1218 crores more than previous year.
2. The total expenses incurred in creating the revenue rose up by about 9% i.e. ₹ 538.61
crores.
3. The profit of the company increased by 49% from ₹ 1021 crores to ₹ 1520 crores.
The company have also declared ₹ 1288 crore has which is 43% higher than the
previous year value.
4. The earnings per share also increased from ₹ 7.91 per share to ₹ 11.78 per share.

Vertical Analysis of Statement of Profit and Loss

  March’21 Percent of March’ 20 Percent of
Total Total
INCOME ₹ Crore Revenue ₹ Crore Revenue
Revenue from Operations ₹ 8,378.37   ₹ 7,254.00  
[Gross]
Less: Excise/Service Tax/Other ₹ 0.00   ₹ 0.00  
Levies
Revenue from Operations ₹ 8,378.37   ₹ 7,254.00  
[Net]
Other Operating Revenues ₹ 115.13   ₹ 61.00  
Total Operating Revenues ₹ 8,493.50   ₹ 7,315.00  
Other Income ₹ 163.56   ₹ 124.00  
Total Revenue ₹ 8,657.06 100.00% ₹ 7,439.00 100.00%
EXPENSES        
Cost of Materials Consumed ₹ 3,818.48 44.11% ₹ 3,428.00 46.08%
Purchase of Stock-In Trade ₹ 150.47 1.74% ₹ 177.00 2.38%
Changes in Inventories Of FG, -₹ 71.22 -0.82% ₹ 140.00 1.88%
WIP And Stock-In Trade
Employee Benefit Expenses ₹ 533.72 6.17% ₹ 478.00 6.43%
Finance Costs ₹ 129.94 1.50% ₹ 50.00 0.67%
Depreciation and Amortisation ₹ 210.69 2.43% ₹ 140.00 1.88%
Expenses
Other Expenses ₹ 1,802.53 20.82% ₹ 1,623.00 21.82%
Total Expenses ₹ 6,574.61 75.95% ₹ 6,036.00 81.14%
Profit/Loss Before ₹ 2,082.45 24.05% ₹ 1,403.00 18.86%
Exceptional, Extraordinary

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 Items and Tax
Exceptional Items -₹ 29.00 -0.33% -₹ 29.00 -0.39%
Profit/Loss Before Tax ₹ 2,053.45 23.72% ₹ 1,374.00 18.47%
Tax Expenses-Continued   0.00%   0.00%
Operations
Current Tax ₹ 513.36 5.93% ₹ 347.00 4.66%
Deferred Tax -₹ 13.00 -0.15% -₹ 16.00 -0.22%
Tax for Earlier Years ₹ 0.00 0.00% ₹ 0.00 0.00%
Total Tax Expenses ₹ 500.36 5.78% ₹ 331.00 4.45%
Profit/Loss After Tax and ₹ 1,553.09 17.94% ₹ 1,043.00 14.02%
Before Extraordinary Items
Profit/Loss from Continuing ₹ 1,553.09 17.94% ₹ 1,043.00 14.02%
Operations
Profit/Loss for The Period ₹ 1,553.09 17.94% ₹ 1,043.00 14.02%
Minority Interest -₹ 33.09 -0.38% -₹ 22.00 -0.30%
Share of Profit/Loss of ₹ 0.00 0.00% ₹ 0.00 0.00%
Associates
Consolidated Profit/Loss After ₹ 1,520.00 17.56% ₹ 1,021.00 13.72%
MI and Associates
The vertical analysis of the Statement of Profit & Loss is compared on the bases of the total
revenue generated of the company to the other line items as percentage of it.

1. In FY21 about 76% of the revenue represented the total expense whereas in FY20 it
was about 81% of the respective revenue.
2. The tax liability gives around 6% and 4.5% of the revenue in FY21 and FY20
respectively.
3. The consolidated profit after tax is about 18% of the revenue in the FY21 whereas it
only represented about 14% in FY20.

Vertical Analysis of Balance sheet

  March’ Percent of March’20 Percent of
21 Total Total
EQUITIES AND ₹ Crore Liabilities/ ₹ Crore Liabilities
LIABILITIES Assets / Assets

SHAREHOLDER'S FUNDS        
Equity Share Capital ₹ 129.00   ₹ 129.00  
Total Share Capital ₹ 129.00 2.28% ₹ 129.00 2.58%
Reserves and Surplus ₹   ₹  
3,103.00 2,869.00
Total Reserves and Surplus ₹ 54.73% ₹ 57.36%

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 3,103.00 2,869.00
Employees Stock Options ₹ 28.95 0.51% ₹ 25.00 0.50%
Total Shareholders’ Funds ₹ 57.51% ₹ 60.44%
3,260.95 3,023.00
Minority Interest ₹ 15.00 0.26% ₹ 13.00 0.26%
NON-CURRENT        
LIABILITIES
Long Term Borrowings ₹ 5.63 0.10% ₹ 10.00 0.20%
Deferred Tax Liabilities [Net] ₹ 1.03 0.02% ₹ 6.00 0.12%
Other Long-Term Liabilities ₹ 228.34 4.03% ₹ 165.00 3.30%
Total Non-Current Liabilities ₹ 235.00 4.14% ₹ 181.00 3.62%
CURRENT LIABILITIES        
Short Term Borrowings ₹ 371.29 6.55% ₹ 325.00 6.50%
Trade Payables ₹ 20.13% ₹ 978.00 19.55%
1,141.24
Other Current Liabilities ₹ 588.13 10.37% ₹ 424.00 8.48%
Short Term Provisions ₹ 58.33 1.03% ₹ 58.00 1.16%
Total Current Liabilities ₹ 38.08% ₹ 35.69%
2,158.99 1,785.00
Total Capital and Liabilities ₹ 100.00% ₹ 100.00%
5,669.94 5,002.00
ASSETS        
NON-CURRENT ASSETS        
Tangible Assets ₹ 901.00 15.89% ₹ 817.00 16.33%
Intangible Assets ₹ 32.07 0.57% ₹ 41.00 0.82%
Goodwill ₹ 576.00 10.16% ₹ 538.00 10.76%
Capital Work-In-Progress ₹ 65.00 1.15% ₹ 58.00 1.16%
Fixed Assets ₹ 27.76% ₹ 29.07%
1,574.07 1,454.00
Non-Current Investments ₹ 149.58 2.64% ₹ 105.00 2.10%
Deferred Tax Assets [Net] ₹ 165.00 2.91% ₹ 159.00 3.18%
Long Term Loans and ₹ 25.00 0.44% ₹ 20.00 0.40%
Advances
Other Non-Current Assets ₹ 85.14 1.50% ₹ 82.00 1.64%
Total Non-Current Assets ₹ 35.25% ₹ 36.39%
1,998.79 1,820.00
CURRENT ASSETS   0.00%   0.00%
Current Investments ₹ 695.80 12.27% ₹ 628.00 12.55%
Inventories ₹ 25.46% ₹ 27.59%
1,443.60 1,380.00
Trade Receivables ₹ 613.00 10.81% ₹ 539.00 10.78%
Cash and Cash Equivalents ₹ 511.00 9.01% ₹ 279.00 5.58%
Short Term Loans and ₹ 5.75 0.10% ₹ 5.00 0.10%
Advances
Other Current Assets ₹ 402.00 7.09% ₹ 351.00 7.02%
Total Current Assets ₹ 64.75% ₹ 63.61%

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 3,671.15 3,182.00
Total Assets ₹ 100.00% ₹ 100.00%
5,669.94 5,002.00

The vertical analysis of Balance Sheet is done to show the relative sizes of the different
accounts based on the balance sheet total as the base figure.

1. In FY21 Total Shareholders’ Fund represented about 57.51 % of the base figure
where as in FY20 it 60.44%.
2. It also says that a rise the current liabilities percentage when compared their
respective base figure of their respective years whereas it shows the drop in the case
of the total non- current assets.
3. The current assets represent about 65% in the assets side of the balance sheet.

  March'21 March'20 Percentage Change

Debit ₹ 233.97 ₹ 175.00 33.70
Equity ₹ 3,096.98 ₹ 2,870.00 7.91
Total Assets ₹ 5,669.94 ₹ 5,002.00 13.35
EBIT ₹ 2,183.39 ₹ 1,424.00 53.33
Working Capital ₹ 1,512.16 ₹ 1,397.00 8.24
COGS ₹ 3,897.73 ₹ 3,745.00 4.08
Average Inventory ₹ 1,411.80 ₹ 1,395.50 1.17
Gross Profit ₹ 4,480.64 ₹ 3,509.00 27.69
Net Profit ₹ 2,082.45 ₹ 1,403.00 48.43
Operating Cost ₹ 6,233.98 ₹ 5,846.00 6.64
Capital Employed ₹ 3,495.95 ₹ 3,204.00 9.11

Ratio Analysis
  March'21 March'20
Ratios    
1. Liquidity Ratio    
a) Current Ratio/Working Capital 1.70 1.78
Ratio
b) Liquid Ratio 1.03 1.01
2. Solvency Ratio    
c) Debit Equity Ratio 0.08 0.06

56
 d) Proprietary Ratio 0.55 0.57
e) Total Asset to debt Ratio 24.23 28.58
f) Interest Coverage 16.80 28.48
3. Turnover/Performance/Activit    
y Ratio
g) Stock Turnover/Inventory 2.76 2.68
Turnover Ratio
h) Working Capital Turnover 5.54 5.19
Ratio
4. Profitability Ratio    
i) Gross Profit Ratio 53.48 48.37
j) Net Profit Ratio 24.86 19.34
k) Operating Ratio 74.41 80.59
l) Operating Profit Ratio 25.59 19.41

Marico COVID-19 at Glance

a. Partnered with companies such as Delhivery, Shadowfax and Lalamove to streamline
our supply chain and ensure that its products are delivered to distributors to meet the
rising demand.
b. Additionally, the company has also partnered with Swiggy, Zomato and Dunzo to
enable consumers to order food items under the Marico portfolio.
c. With the coronavirus pandemic, people have been turning to immunity-boosting
products and healthy foods that will keep them strong and away from the virus. The
company has launched several products including Saffola Kadha Mix and Saffola
Golden Turmeric Milk Mix.
d. Marico announced its foray into the Chyawanprash category, with the launch of
Saffola Arogyam Chyawan Amrut Awaleha.

Marico for the future

FMCG companies are adept to change rapidly and the same is helping some of the largest
consumer goods manufacturers in the country during the COVID-19 situation.

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1. Digital Transformation: Marico should focus more on a digital transformation to
enhance consumer engagement, drive sales through e-commerce and build data
analytics capabilities for faster and efficient decision-making across the value chain.
2. Managing Cost: Keeping a check on discretionary spends and finding ways to
optimize cost through cloud-adoption, consolidation, retiring non-critical applications,
open-source, start-up solutions, etc. Also collaborate with business partners to find
more efficient ways to manage costs.
3. Rising demand for ready to cook foods: The demand for healthy ready-to-cook meals
will be on the rise with concepts such as work from home becoming a way of life. They
should focus on this segment to diversify existing product line by offer a wide range of
nutritious products.
4. Changing economy: Annual planning cycles to quarterly planning cycles in order to
understand, analyse and mitigate risks better.
5. Immunity Products: Company could focus on some more immunity products.
6. Sustainable way of producing the products: 100% recyclable plastic product
packaging by 2025.

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