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Project Synopsis

A study on Strategic Management At MARICO

Submitted to,

Mr. Alex P. George


Date:- 4/13/2011

Team Members

Antony Raphel
Femin Francis
Niju K.A.
Raghu K.A.
Shine Mathew

IV Semester, MBA@JMC
Title of Project: -

A STUDY ON STRATEGIC MANAGEMENT AT MARICO

Introduction:-

Marico (BSE: 531642, NSE: “MARICO”) is one of India’s leading Consumer Products &
Services Group, in the global beauty and wellness space. During 2009-10, Marico
recorded a turnover of Rs. 26.6 billion (about USD 600 Million) through its products and
services sold in India and 25 other countries in Asia and Africa.

Marico touches the lives of 1 out of every 4 Indians, through its portfolio of brands such
as Parachute, Parachute Advansed, Saffola, Hair & Care, Nihar, Mediker, Revive and
Manjal. The international portfolio contributes to 23% of the Group’s revenue, with
brands like Parachute, Parachute Advansed, HairCode, Fiancee, Camelia, Aromatic, Caivil,
Hercules, BlackChic, Code 10 and Ingwe. In addition, the company recently acquired
International Consumer Products Corporation (ICP), one of the most successful
Vietnamese FMCG Companies. Marico is also present in the Skin Care Solutions segment
through Kaya Skin Clinics in India, Middle East and Bangladesh and Derma Rx in
Singapore.

The company has 3 divisions the Consumer Products Group(CPB), The International
Business Group and Kaya Skin Clinic.

Consumer Product Groups: - Over the past 17 years, Marico has been continually
improvising and building new brands. Marico's Consumer Products Business houses well-
known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker,
Revive, among others, which occupy leadership positions with significant market shares
in most categories- Coconut Oil, Hair Oils, Post wash hair care, Anti-lice Treatment,
Premium Refined Edible Oils, niche Fabric Care etc.

Every month, over 70 Million consumer packs from Marico reach approximately 130
Million consumers in about 23 Million households, through a widespread distribution
network of more than 2.5 Million outlets in India and overseas.

International Business Group: - The International Business Group (IBG) was formed in the
90's to cater mainly to the demand of Indians settled abroad. The Business was then
small and it has over the years assumed increasing proportions with a phenomenal
topline growth rate of more than 44% in the five year period ending 2009. Its organic
growth rate has also been above 36% during this period. Initially Marico exported only
Parachute Coconut Oil. Now it caters to varying needs of customers in different countries
with a host of varied offerings. To cater to customers who belong to diverse cultures and
consumer habits, the International Business Group has been customizing its products. For
example, it offers perfumed oils to consumers in Bangladesh and Hair Creams and Hair
Gels to its consumers in the MENA (Middle East and North Africa) region.

Marico’s brands are also market leaders in their respective categories in major
geographies.Parachute Coconut Oil is the market leader in Bangladesh with more than
74% market share (2009-10). Parachute Hair Cream in Gulf is also a leader in its category
with a 27% market share (2009). In Egypt, Marico’s brands have a total market share of
over 55% in the hair styling category

KAYA:- Kaya Ltd (erstwhile Kaya Skin Care Ltd.) was an entrepreneurial leap of faith, from
consumers products to giving holisitic solutions. This marked Marico's entry into skin
care solutions business. It focuses on meeting the emerging needs of the modern day
consumers by providing useful and effective services in the beauty and wellness space.
Today, Kaya is recognized as a pioneer in skin care and has become
a benchmark for efficacy and client care. Over 6 Lakh delighted customers pledge their
trust in Kaya.

The philosophy at Kaya is governed by the single value of placing the customer first at all
times.The emphasis, therefore, is to offer personalized, world-class skincare treatments
and services, most suited for Indian skin, in a zen like, state-of-the-art clinic. Since its
first prototype in Bandra in 2002, Kaya Skin Clinics has grown at an unprecedented pace,
with over 100 clinics in India, Middle East and Bangladesh.

It expects inorganic growth to contribute up to 40 percent to it’s overall growth and the
remaining would be organic. Marico acquired four brands — Manjal, a turmeric-based
herbal soap brand in Kerala from Oriental Extractions, Nihar, a perfumed coconut oil
brand from Hindustan Lever, Fiancée, a post-wash hair care brand from the Egypt based
Ready Group and Hair Code, a hair cream and hair gel brand in Egypt from the Soliman
Group .
In India, only 22% of the population uses skincare products of any kind. The segment,
however, has been growing by 16-18% annually, according to a report by Credit Suisse, an
international brokerage. The penetration in urban markets at 31.5%, is higher than that
in rural markets, where it is only around 18%. Marico’s operations are directed to grow
both organically and in -organically to reap benefit from the Indian as well as
International markets in the coming days.
Objectives of Proposed Study:-

• To identify the various strategic management decisions taken by Marico.


• To analysis and evaluate the implementation strategies.
• To understand the future plans of Marico.

Research Methodologies:-

Research Design:-

The research design is descriptive in nature

Source of Data: -

Research is based on the secondary data collected from various sources like

• Company published documents


• Websites and search engines
• Books published.
• Other records and research reports
Tools of analysis:-

Various comparison studies are using to evaluate the performance of company over its decisions.

Relevance of proposed study:-

With the economy is poised to achieve an 8 to 9 percent growth in the coming years and the number of
middle class population is increasing day by day. The FMCG sector in India is going to be highly
competitive. In such a scenario only the best can find a place in the consumers mind whose level of
awareness is as high as many of the developed countries.

Limitations of Study

Manipulation of data may affect study as the data collected for comparison are secondary in nature.

Related Interests