Marico is a leading Indian multinational consumer goods company which was established

under the name Marico Foods Limited on 13 October 1988 by Harsh Mariwala. Marico
makes products that are used for hair care, skin care, fabric care, health foods, edible oils, and
male grooming. It’s headquarters are located in Mumbai and Marico is well known in over 25
countries across Asia and Africa. In 1974, Harsh envisioned a branded FMCG(Fast Moving
Consumer Goods) market for coconut and refined oils in compact consumer packagings. To
achieve this vision, he established a nationwide distribution network for the brand named
“Parachute”. The annual revenue of Marico goes around 9,764 crores INR but this wasn’t the
case when it was first founded. Marico faced many initial challenges like establishing a brand
presence, gaining and maintaining people’s trust and bringing new innovations in their
products so as to make customers re-look at the brand as if they were to interact with it. In
order to solve these issues the company first made sure that everybody was well aware of
their main goal, i.e. at every level, people make the brand stronger. Thus a strong team would
make a strong brand. They also focused on sustainable profitable growth. The key strategies
used by the company to grow include community well-being, sustainability, product
diversification, brand building and market expansion. To achieve this Marico has been
putting up more emphasis on digital initiatives to enhance interaction with consumers, boost
online sales, and develop data analytics capabilities for quicker and more efficient decision-
making throughout the entire business process. In the beginning, the FMCG industry in India
focused mainly on everyday essentials. But with the country embracing urbanization and
globalization, there was a significant change. This transformation was evident in the
industry's shift towards a more varied range of products, as companies adjusted their
offerings to match the changing preferences and lifestyles of the growing urban population.
The FMCG industry in India has witnessed dynamic and vibrant growth, driven by several
key factors. The burgeoning middle class has emerged as a crucial force, propelling demand
across a diverse range of FMCG products. As more households ascend to the middle-income
bracket, their increased purchasing power creates a substantial market for consumer goods.
Simultaneously, there is a noticeable trend among consumers who prioritize health and
wellness, influencing the industry to adapt and offer products aligned with healthier lifestyles.
This shift in mindset has led to the introduction of organic and fortified food items, as well as
wellness-focused personal care products. Additionally, the advent and widespread adoption of
e-commerce platforms have reshaped the retail landscape for FMCG. The convenience and
accessibility provided by online channels not only transform consumer purchasing behavior
but also offer FMCG companies new and expansive avenues to reach a broader audience,
contributing significantly to the industry's ongoing growth and evolution. When we look at
Marico's financials in their yearly and directors' reports, we notice a steady growth trend.
These reports give us a closer look at where Marico is making money, how much things cost,
and the profits they're making. They carefully break down where the money is coming from,
like sales and other sources. They also look at where the money is going, like production
costs, marketing, and research. By doing this, they figure out how well the company is using
its resources and how competitive it is. They also look at profits and see if they're making
money in different parts of the business. Marico is careful with its financial decisions, making
sure to assess risks and plan for uncertainties. This helps them stay strong even when the
economy or the market changes. So, in simple terms, Marico's financial reports tell a detailed
story about how they're doing financially and how they make smart decisions to stay
successful. Marico is actively steering its brand evolution in response to changing times, with
a strong focus on an Environmental, Social, and Governance (ESG) agenda. The company's
Chairman has outlined ambitious goals, aiming for net-zero emissions in global operations by
2040. To achieve this, Marico strategically addresses carbon management through resource
optimization, transitioning to 100% renewable energy sources, and investing in technologies
for decarbonization. Notably, the entire global manufacturing landscape operates with a zero-
coal strategy, with 70% of operational energy sourced from renewables in FY22, resulting in
an impressive 80% reduction in greenhouse gas emissions intensity. Marico extends its
sustainability efforts to the supply chain, collaborating with suppliers to enhance social and
environmental standards. Initiatives like SAMYUT have certified 46% of critical value chain
partners at Level 1, and 10% at Level 2. Marico's sustainability achievements have garnered
recognition, placing it among the top three Most Sustainable Companies in India and earning
accolades such as 'Masters of Risk' in the ESG category. These accomplishments underscore
Marico's commitment to UN's Sustainable Development Goals (SDGs) and robust risk
management within its business excellence strategy, positioning the company as a leader in
sustainable practices within the industry. Marico has competition from both local and global
companies in the FMCG industry. Dealing with what customers want, handling rules and
regulations, and facing challenges on prices are ongoing concerns. To tackle these issues,
Marico can work with other companies, keep coming up with new ideas, and manage costs
well to stay competitive in the market. Marico faces several threats and challenges, including
the potential impacts of past weaknesses. Notably, failed products such as Parachute Hot Oil
and Saffola Snacks have proven costly for the company, resulting in financial losses. To
overcome this, Marico should conduct thorough market research, consumer feedback
analysis, and implement stringent product testing protocols to ensure the successful launch
and sustained performance of new products. Another challenge lies in the practice of
introducing a multitude of new products annually, contributing to a diverse portfolio across
various industries. This can dilute the company's focus and strain resources. Marico should
consider streamlining its product portfolio, concentrating on key offerings, and strategically
investing in sectors where it holds a competitive advantage. This would allow for more
effective resource allocation and a sharper market focus. The inability to establish a premium
image is a notable weakness for Marico, as attempts to penetrate premium market segments
have fallen short. To overcome this challenge, Marico should invest in targeted marketing and
brand positioning strategies that convey a premium image. This may involve rebranding
existing products or introducing new ones with a clear emphasis on premium quality, design,
or exclusivity.