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INDIRA SCHOOL OF BUSINESS STUDIES PUNE
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India’s consumer market is riding the crest of the country’s economic boom. India’s fast moving consumer goods (FMCG) sector is the fourth largest sector in the economy of India with a total market size in excess of US$ 13.1 billion. If we go by statistics, roughly around 73% of the Indian population lives in the rural areas- that’s a very large market. Many giant players both foreign as well as domestic, are competing in the market with a view to capture it. The growing consumerism in India shows the rapid increase in Indian consumer purchasing power, it shows strengths and opportunity that lies in rural Indian markets especially for FMCG products. As a result of it I have opted to undergo the training in Marico Company a leading Indian FMCG Company having excellent distribution channel and deep rural reach in India .As the major part of the market is yet to be taped one need to evolve a set of strategies and there by plans to tape the potential Indian consumer market. To capture such a great opportunity, only good product and brand awareness will not be sufficient but proper distribution channel must be there With the world moving toward's globalization and the phenomena of LPG is touching each and every country and industry its effects are also there on Indian FMCG sector. Thus Companies need to constantly revive their 4P's strategy to be successful in the growing competitive Market's. Considering purely the fundamentals laid down by Philip Kotler is suggest that you need to have Right Product Mix (Product),Proper Pricing Strategies(Pricing),Right Promotion Offers(Promotion) and E fficientDistribution Channel (Place) to be a Successful Company. So in order to have a clear picture of all 4P's of Marico and especially for having efficient distribution channel, Satisfaction Level of Retailers on Various Products as well as other micro Parameter's plays a vital role in identifying the flaws and merits of Marico.
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Marico is a leading Indian Group in Consumer Products and Services in the Global Beauty and Wellness space. Marico’s Products and Services in Hair care,Skin Care and Healthy Foods generated a Turnover of about Rs.13.6 billion (aboutUSD 380 Million) during 2006-07. Marico markets well-known brands such as Parachute, Saffola, Sweekar,Hair & Care, Nihar, Shanti, Mediker, Revive,Manjal, Kaya, Sundari, Aromatic, Camelia, Fiancee and HairCode. Marico’s brands and their extensions occupy leadership positions with significant marketshares in most categories- Coconut Oil, Hair Oils, Post Wash Hair Care, Anti-lice Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Marico is present in the Skin Care Solutions segment through Kaya Skin Clinics (31 in India and the Middle East), the Sundari range of Spa skin care products (in the USA & other countries) and its soap franchise (in India and Bangladesh).Marico's branded products are also present in Bangladesh, other SAARCco untries, the Middle East and Egypt. The Overseas Sales franchise of Marico’sConsumer Products (whether as exports from India or as local operations in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded products and services. Marico was selected as one of the eight. Indiancompanies in S & P's list of Challenger Companies from various nations,compiled globally by Standard & Poor's in June 2007.Marico has also won various other Awards such as the following:
➢ 3 top Awards instituted by CNBC-TV18, U21 Global and Watson Wyatt
Worldwide, in following categories: India’s Employer of Choice for 2007 ,Award for HR Excellence & Award for Best Employer i n t h e C o n s u m e r Products and Healthcare Sector. ➢ Gold Effie (2007) for its Corporate campaign and a Bronze Effie
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(2007) for Saffola. Kaya - Best Retailer in the Beauty and Fitness category, India retail Forum(September 2007)9 NDTV Profit Business Leadership Award, FMCG Personal HygieneCategory(Jul y 2007). One of India's 10 best marketers (Business Today September 2006). Brand Leadership Award at the India Brand Summit 2006 (September 2006) Kaya - Retailer of The Year Award (for the 2nd consecutive Year) at IndiaRetail Summit 2006. The Gulf Marketing Review Award in the Middle East 2006.
➢ Every month, over 70 Million consumer packs from Marico reachapproximately
130 Million consumers in about 23 Million households, through a widespread distribution network of more than 2.3 Million outlets inIndia and overseas. ➢ Marico’s focus on sustainable profitable growth is manifest through itsconsistent financial performance – a CAGR of 19% in Turnover and 19% inProfits over the past 3 years- while setting a record of several consecutivequarters of year on year growth- 32 for Profits and 28 for Sales. VALUES OF MARICO INDUSTRY: Opportunity seeking Bias for Action Consumer Centric Excellence Innovation openness & transparency Global outlook ➢ Boundary lessness ➢ ➢ ➢ ➢ ➢ ➢ ➢ Marico has a set of articulated values that were created at the inception of the organization, revisited and modified once in the year 1997 and lately in 2003, through the collective wisdom of Mariconians. The values since then have been an integral part of the working of all Mariconians. Their values are preferred practices that are employed in pursuit of their Business. Direction. They sum up the philosophy that will build the culture to drive business growth
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Skin Care services through its 'Kaya Skin Clinics'. which were serviced by its nation-wide distribution network comprising six regional offices. Marico's products reached around 100 million Indians every month through 17 lakh retail outlets. In a survey carried out by 'Brand Equity' of The Economic Times in early 2003. In a survey of 500 companies conducted by 'Businessworld' in 2003. Marico had maintained a steady sales and profit growth over the years with a consistent Return On Capital Employed (ROCE) of over 30%. for India's 100 most trusted brands. 32 Carrying and Forwarding Agents (CFAs) and 3600 distributors and stockists2. Marico's brands had shown resilience against competition and maintained their market shares over the years.Marico was famous for its 'Parachute' and 'Saffola' brands. Marico entered two new lines of business in the year 2002-03 . Marico ranked 16th in terms of ROCE while it ranked fourth among FMCG companies. which owned the Sundari line of skin care products. Saffola ranked 75th and Parachute ranked 29th. Page 5 of 46 . and Ayurvedic Skin Care Products business in the US by its acquisition of a controlling stake in 'Sundari LLC'.
1990 . . Revive and Sil.Company History 1988 . .In December.Industrial Estate. 1989 .Rasoi Industries Limited for purchase of its unit located at M.I. edible oils. It obtained the Certificate of commencement of business on 22nd November.D. Marico's Hair & Care. 1993 Page 6 of 46 .The name of the Company was changed to Marico Industries Limited w.The Company is engaged in the business of manufacture and marketing of branded personal care products.The Company was incorporated on 13th October.The Company entered into a Registered Users Agreement dated 26 th September. Saffola. The Company's products are sold under the brand names Parachute. Jalgaon. fabric care products and processed foods. with BOIL for the use of the brands Parachute and Saffola for an initial period of 3 years commencing from 1st April.e.C. the Company entered into an agreement with M/s. 31st October.f. under the name of Marico Foods Ltd. Sweekar.
00.000 equity shares of Rs. . the Company made a fresh issue of 10. Revive Instant Starch. 1995 . The products Marico's Hair &Care.10/. . between the Company and Karvy Consultants Ltd.Memorandum of Understanding dated 2nd January. Amardeo Plastic Industries having its factory at Mumbai.Saffola won the Most Outstanding `Brand of the Year' Award instituted by the Advertising Club of Mumbai. .per share.In March. Kerala to manufacture Parachute Coconut Oil. Palghat District. agreeing to act as Registrars to the Issue. 1994 .The Company established a new plant at Kanjikode. at a premium of Rs..165/. Parachute Amla and Parachute Herbal are manufactured on job work basis as per the Company's quality specifications and under the brand names of the Company.The Company has acquired the Brand `SIL' from KFL in March for an aggregate consideration of Rupees Three crores. .each. -The Company has two SSI Units namely M/s. Saffola and Sweekar are manufactured at the Company's factories. 1996 .The SIL range of jams and food products are manufactured by Kanmoor Foods Limited (KFL) and marketed by the Company. for using the Trademark Parachute and Saffola. This plant with capacity of 24000 tons of coconut oil per annum began commercial operation in May. simultaneously with an offer for sale by the Page 7 of 46 .Agreements dated 21nd February 1994 and 16th November 1995 between the Company and The Bombay Oil Industries Ltd.The products Parachute Coconut Oil.
Marico Industries has extended the Sweekar oil brand to introduce two new refined oils-Sweekar cotton seed oil and Sweekar mustard oil. 400 crore consumer goods company has been selected as a Top Performing Global Growth Company from India by the World Economic Forum.165/.The Company decided to leverage on the strong equity of the Parachute brand through appropriate extensions.The Total Quality Movement within the Company has gathered speed and now embraces virtually all locations. . thus making it an umbrella brand. Accordingly. the Rs. 1997 .The company has announced the extension of the Parachute brand name to other products in the hair care segment. .10/.Marico Industries has launched three new variants of coconut oil light oil. .The company has set up a factory near Jalgaon to process the cotton seeds and another factory near Jaipur for the mustard oil. . a process which began four years ago. New Delhi.The Company has acquired a formidable reputation for its HR practices and has been recognised by the National HRD Network in the recent past. . Presently. . . `Parachute Herbal' was launched.per share.000 equity shares of Rs.The company has launched branded refined mustard oil and cotton seed oil refined under its brand name Sweekar Orange. .25. .Marico Industries Limited. nutra sheen liquid and nutra sheen creme-under the brand name Parachute. all the establishments are covered by information technology and networked with the Corporate Office.promoters of 26.each. . at a premium of Rs.Marico Industries has been one of the few success stories in the fast-moving consumer goods segment. Page 8 of 46 .The Company has made major investments in information technology.
.The company is planning to set up a local manufacturing unit is several other SAARC countries.Marico Industries Ltd is focussing on relaunching its SIL brands in its `healthcare' business. which is a sunflower oil. .ICRA has retained the `A1+' rating for the Rs. .The company is planning to introduce a range of vegetable soups. . . after a successful repositioning of its Saffola and Sweekar brand.1998 .Marico Industries (Marico) and The Bombay Oil Industries (BOIL) have reached an understanding in terms of which the brands.The company was originally a join venture between a Lever group company and Nissin of Japan.The company is planning to set up a wholly-owned subsidiary in Bangladesh shortly. 7. and its products were distributed through HLL's channels. 2000 Page 9 of 46 . .5-crore commercial paper programme of the company.The company has recently launched a new variant in Postman called Sona. .The company has recently extended the brand equity of Parachute to coconut-based hair grooming products like Parachute Lite and Parachute Nutra-Sheen.MIL launched an innovative fabric care product named Revive ColourFix which helps to fix the colour on cotton fabrics. . Parachute and Saffola are being assigned to Marico. The company is also considering testing Parachute branded products in international markets like Europe and America.Marico Industries Ltd has taken the lead in launching a refined oil in the soya segment with a new variant called Sweekar Refined Soya Oil. 1999 . .
.Marico Industries has launched the Revive Anti-Bacteria starch. has a tied up with the International Association of Trichologists (IAT). 2003 -Marico Industries Ltd have appointed Erehwon consultancy firm for initiatives of innovation in marketing and management.Increase in authorised share capital of the Company from Rs 300 million to Rs 600 million.The Company launched Parachute Dandruff Solution Coconut Hair Oil in Calcutta. urges every Indian to take up healthy lifestyle. Aaj se jeene ka andaaz sudhariye (Improve your lifestyle today). The campaign by Grey Worldwide has a new tagline. Madhav Nandini Trading & Investment Private Ltd. The rate of dividend is 8% p.1:1 on equity enhanced after bonus issue of equity shares made by the Board on April 18. Rajvi Rishabh Trading & Investment Private Ltd and Rishabh Page 10 of 46 . 2002 and approved by shareholders on July 18. Ratio -. a non-profit organisation based in Australia. the first oil to combine coconut oil with anti dandruff properties in a single hair oil. 2001 . 2002.Marico Industries Ltd.The Company has launched the branded coconut oil in a tamper proof seal pack with a flip top cap. Earlier Saffola campaign used the tag line .Saffola Swasth ParivaarKe Dil Ki Dhadkan -High Court of Judicature at Bombay approves the Scheme of Amalgamation of Anandita Arnav Trading & Investment Private Ltd. -Marico Industries have acquired a controlling equity interest in Sundari LLC. .a. 2004 -Marico Industries' popular edible oil brand 'Saffola' launches a fresh advertising campaign. 2002 -Marico Industries Ltd has informed BSE that the Board approved the Issue of bonus redeemable preference shares of aggregate face value of Rs 290 million. .
MBL acquires soap brand Aromatic -Marico introduces new Mediker Plus in southern market -Marico arm buys toilet soap brand in Bangladesh 2006 -Marico Ltd has informed that the Company has reached an agreement to acquire the brand 'Nihar' from Hindustan Lever Ltd (HLL).10/. -Marico enters Egypt.coconut oil and perfumed hair oils. Page 11 of 46 . . a blend of Ricebran and Kardi oils in a 70:30 ratio.1/-. Nihar gas a current annualized turnover of about Rs 1200 million spread over two segments .The Company has splits its face value from Rs. acquires haircare brand Fiancee 2007 -Marico Ltd has appointed Mr.Harsh Trading & Investment Private Ltd with Marico Industries Ltd on February 12. which has dual benefits of lowering cholesterol and enabling food cooked in it to absorb lesser oil -Marico industries has announced its foray into the beauty products segment with the launch of Silk-n-Shine. a post-wash haircare product 2005 -Marico .Marico Industries launches 'Saffola Gold.to Rs. -Marico Ltd has informed that the Company has acquired the Herbal Bath Soap brand Manjal from Oriental Extractions Pvt Ltd (Oriental) for an undisclosed consideration.2004 -Announces 1:1 bonus issue . Anand Kripalu as an Additional Non-Executive Director on the Board of Directors of the Company.
-Marico Uncommon Sense Campaign won Gold EFFIE in Corporate Advertising Category Nihar Naturals and Saffola won Bronze each under Consumer Products Category 2008 -Marico Limited has appointed Ms.as Company Secretary and Compliance officer of the Company.Legal Manager. Page 12 of 46 . Rachana Lodaya. 2008. -Marico Jalgaon was awarded the CII National Water Management Award -Marico was ranked 2nd in Sourcing Platform Benchmarking Program 2009 -Asia Pacific Quality Organization (APQO) .Marico won the 'Best in Class' Award (Second highest) for the Large Manufacturing category -Marico won the Greentech Environment Excellence Award 2009 in the Silver Category in FMC 2010 -Harsh Mariwala was awarded the Ernst & Young ‘Entrepreneur of the Year Award’ 2009 in the Manufacturing category. with effect from August 01.
➢ Excellence: For it unleashes our potential Page 13 of 46 .VISION Marico vision’s for: ➢ Consumers: For they are the reason we exist ➢ Membership: For a sense of ownership empowers us.
and second: a framework to leverage innovation for quantum growth. Organization structure A Flat Structure: Page 14 of 46 .➢ Wealth: For on it hinges our growth ➢ Innovation: For it gives wings to ideas MISSION 2020 ➢ The Marico Innovation Foundation’s mission is to provide the nation with first: a belief that Innovation is possible and is the way to leapfrog India into the center stage of global business leadership.
Such long term solvency of a firm can be judged by using leverage or capital structure ratios.91 varies from industry to industry.66 Mar’09 0. Marico's structure is dynamic and constantly evolving. Keeping in mind the fast and ever changing business environs.84 Mar’0 8 1. Debt-Equity ratio =Total Equity/Total Debt The desirable/ideal proportion of the two components (high or low ratio) Mar’11 .At Marico.63 Mar’10 0. (Debt-Equity ratio reflects relative contributions of creditors and owners to finance the business. Page 15 of 46 . Their structure defines clear roles and supporting relationships but is by no means rigid. Leverage=long-term debt / total equity Long term financial strength or soundness of a firm is measured in terms of its ability to pay interest regularly or repay principal on due dates or at the time of maturity. Financial performance 1. which is flat with only five levels Of reporting between the Managing Director and an operator on the shop floor. They believe that a flat structure helps us in being more responsive to the environment while providing enriched roles for our members.09 Mar’07 0.
larger is the Mar’11 Current Ratio 0.09 times more than the total equity which was a very risky period for the company as they were running under lot of debt and had taken lot of loans.28 Mar’08 1.33 Mar’07 0. Current Ratio = current assets/current liabilities The current ratio measures the ability of the firm to meet its current liabilities from the current assets. greater the short-term solvency (i.35 Mar’09 1.99 Mar’10 1.63 which can be said is satisfactory.09 which implies that the debt were 1.Debt equity ratio in 2008 was 1.99 which is a bit low compare to the previous year i. It went down furthermore to 0.e in 2010. In the present scenario the ratio stands at 0. Currently the ratio stands at 0. Higher the current ratio. as next year the ratio went below 1 that means the assets increased to such an extent that it surpassed the debt amount and the company attained a safe position.66 such a low ratio indicates the funds were not spent as they should have been. Page 16 of 46 .90 amount of rupees available per rupee of liability) Current ratio of the company has been gradually fluctuating since 2007 on an annual basis the company has been not performing consistently with a good amount of cash in hand.e.
Assets – Cur.77 .06 Mar’07 189. Liabilities Mar’11 Working Capital(Cr.21 18.49 Mar’09 10. Working capital = Cur.B.02 Mar’09 269.08 Mar’08 12. Gross Profit (on sales) = Net Sales – Cost of goods sold.54 Mar’09 402.07 Mar’07 0.16 6.I&T / Interest Mar’11 Interest Coverage Ratio Page 17 of 46 Mar’10 21.27 Mar’10 499.3.55 4.40 Mar’08 209.21 Mar’07 165.27 Mar’10 333.25 Mar’08 1.11 Mar’08 333.80 4.23 Mar’09 1.Quick ratio = (cur. Mar’11 G.) 343. Interest coverage ratio = P.P(Cr.70 Mar’10 1. Assets – inventory)/cur. Liabilities Mar’11 Quick Ratio 1.08 Mar’07 10.) 687.
G.44 Mar’10 15.7. OF SHARES SHARES PLEDGED OR OTHERWI SE ENCUMBE Page 18 of 46 .37 Mar’09 13.37 Mar’09 13. R.13 Mar’08 12.S) / Net Sales Mar’11 Gross margin 13.06 Mar’07 11.N.44 Mar’10 15. OF SHAREHOLDERS TOT AL NO.N.A [Return on net asset] = = Net Income/Shareholder's Equity Mar’11 R.13 Mar’08 12.O.Gross Margin = (Net Sales – C.21 8.O.A 13. OF SHARES HELD IN DEMATERIAL IZED FORM TOTAL SHAREHOLD ING AS A % OF TOTAL NO.21 OWNERSHIP STRUCTURE: CATEGORY OF SHAREHOL DER NO.O.06 Mar’07 11. OF SHA RES TOTAL NO.
882.504.80 62.7 4 62.10 (B) Public Shareholding Page 19 of 46 .208.822. 000 293.43 47. 520 1.504.8 0 400.504. OF SHARES (A) Shareholding of Promoter and Promoter Group (1) Indian Individuals Hindu Undivided Family Bodies Corporate Any Others (Specify) Trusts / 22 83.80 1.822.00 0 293.48 2 4 8.108.63 13.5 20 13.000 293.AS A % OF (A+B) AS A % OF (A+B+C) RED NUMBER OF SHARES AS A % OF TOTAL NO.7 4 47.520 82. 520 62.000 0.000 386.6 3 400.208.000 0.10 4 28 Sub Total (2) Foreign Total shareholding of Promoter and Promoter Group (A) 28 386. 000 385.520 8.108.504.8 0 400.74 47.782.520 385.000 293.43 47.74 62.000 0.
41 1.(1) Institutions Mutual Funds / UTI Financial Institutions Banks Insurance Companies Foreign Institutional Investors Any Others (Specify) Foreign Bank / 8 101 7.15 25. 464 1.181.01 3.415.7 29 Page 20 of 46 .044.93 0.203.0 36 2.936 66. 572 3.5 0 45 3 24.464 30.000 187.4 1 30.40 3.504.181.474.499.572 7.000 187.0 41 19.000 3.01 - 1 3.15 25. 1 lakh 699 14.041 20.208.32 - - 32.50 - - 1 158 Sub Total (2) NonInstitutions Bodies Corporate Individuals Individual shareholders holding nominal share capital up to Rs.226 14.32 2.40 3.780 156.176 24.93 0.78 0 156.044.176 3.000 3.731.773.9 36 66.
53 0.82 9 0.717 40.32 0.630 81.53 - - 920 2.717 41.10 6.10 6. 647 - 0.757 147.2 0 100.829 11 3. 127 612.969.734.07 - - - - - - - .45 0.75 7 147.Individual shareholders holding nominal share capital in excess of Rs.00 - 400.63 0 81.02 0.969.942.20 0.896 1.837 - 100.786.32 0.242.5 17 34. 00 - - - 210 674 3 33 34.830.45 0.5 45 - 614.000 - 0.514 587.70 220.127.116.11 59 34.853 228. 1 lakh Any Others (Specify) Clearing Members Non Resident Indians Trusts ESOP/ESOS/ ESPS Sub Total Total Public shareholding (B) Total (A)+(B) (C) Shares held by Custodians and against which Depository Receipts have been issued-m (1) Page 21 of 46 3.722.317 2.234.01 0.01 0.6 63 227.02 0.70 37.786.514 587.896 1.
837 612.07 BUISNESS OPERATION&PLANT LOCATION ALL OVER THE WORLD: Page 22 of 46 .000 0.942.5 45 614.830.(2) Sub Total Total (A)+(B)+ (C) 34. 00 400. 647 - 100.
Maharashtra – India Dehradun .Maharashtra – India America: USA Canada Asia-pacific: Afganistan Australia Bangladesh Bhutan Malaysia Nepal Pakistan Singapore Sri Lanka Middle East: UAE Iran Israel Page 23 of 46 .Kerala – India Goa – India Jalgaon .Maharashtra – India Pondicherry – India Daman & Diu – India Kanjikode .Uttaranchal – India Mumbai .
Kuwait Lebanon Oman Qatar Saudi Arabia Sudan Yemen Page 24 of 46 .
He is also on the Board of Cadbury India Limited. . Harsh Mariwala is also a part of the Young President Organization (YPO) and World Presidents Organization (WPO) and has held the position of YPO Education. Gupta CEO. In the past. Products Business Page 25 of 46 Saugata 20 years of experience mostly in FMCG as well as in Financial Service Consumer He has an engineering degree from IIT Kharagpur and a management degree from IIM Bangalore. in the Beauty and Director Wellness space In March 2011. Mr. Harsh Mariwala was elected as the President of Federation of Indian Chambers of Commerce and Industry (FICCI).EXECUTIVE PROFILE: Name EXPRIENCE QUALIFICATION Founded Marico in 1990 and transformed a traditional Harsh Mariwala commodity driven business Chairman and into a leading Consumer Products & Services Managing Company. he has held several positions as the FMCG Committee Chairman of FICCI and CII.
Finance. He also completed a Certification Course in Chain Store Management from the Cornell University (USA) Milind completed his professional education (Chartered Accountancy. Mr.Mr. Product Supply. Kaya Ltd Ajay has 20 years of international experience in building global retail brands and leading diverse teams Milind He has 27 years of experience spread across diverse domains such as Group Chief Consumer Products. Vijay Vijay began his career with Subramaniam United Breweries as the All India Marketing Manager in CEO. During 1996. Marico Limite and Human Resources. Ajay also holds a Bachelors degree in Commerce from Delhi University. Ajay Pahwa CEO. Com. Cost Accountancy and Company Secretary ship) during 198384. he was associated with Hoechst (Aventis) and the Godrej Group. Pittsburgh. Prior to Marico. Mr. Sarwate Page 26 of 46 . (Honours) from the University of Bombay in 1979. An MBA from IMD Lausanne (Switzerland). following a B. International Business Group Vijay Subramanian holds a MMS degree from Jamnalal Bajaj Institute of Management Studies and a Bachelor’s degree in Engineering from Mumbai University. with high All India Ranks in CA and CWA. he was one of the two Indian managers selected for the CIIFulbright Fellowship for Leadership in Management at the Carnegie Mellon University. His hospitality training includes a Diploma in Hotel Management from Institute of Hotel Management (Delhi) followed by Oberoi School of Management (Delhi). Finance Officer & Chief Corporate Development & Human Resource Officer Strategy. 1991.
Prior to Marico.South-East Asia and Executive Director & Country Head. as an Accounts Executive with Bharat Gears an alumnus of Jamnalal Bajaj Institute of Management Studies having done his Masters in Management Studies in 1990. held several Executive Vice positions including HeadPresident and Corporate HR. President and Head Sales & Business Finance Consumer Products Business at Marico Limited.HR& OD B Sridhar Ashutosh Telang Bachelor’s degree in Statistics and a Masters in Labour Studies from Mumbai Universit Sridhar has over 16 years of BTech in Electronics from IT experience in Sales. He is a graduate in Commerce from Ness Wadia Institute (Pune He joined Marico in 1999 and since then. Executive Vice and General Management. where he has demonstrated strategic vision and bottom line focus.Pennsylvania. joined Marico in 1999 and since then. . HeadHead Human Resources at Organizational Development Marico Limited. and Head . has held the Executive significant positions like Vice President and Head Finance & Company Regional Head – MENA at Affairs Bangladesh. in 1986. Debashish was associated with Perfetti Page 27 of 46 Debashish Neogi An ACA from the Institute of Chartered Accountants of India. U S A. and a degree from the Institute of Costs and Works Accountants of India. Business Finance Jamshedpur. Marico Limited. Chaitanya Deshpande the Executive Vice President and Head Investor Relations and M&A at Marico Limited began his professional career. Trade BHU and MBA from XLRI B Sridhar is the Marketing. Regional Head.
Sameer joined Marico in 2002 and has since held several leadership positions. Bhubaneswar and a Bachelor of Commerce from Hansraj College University of Delhi.Limited. He has also studied Consumer Marketing Strategy at Harvard Business School and the Global Program for Management Development at the University of Michigan.Youth Products. Page 28 of 46 . Prior to Marico. as the Branch Accounts Manager Sameer Satpathy the Executive Vice President and Head Marketing (Consumer Product Business) at Marico Limited. namely as Head of Marketing for the Wellness & New Products and the Category Head . for nearly three years. Sameer had a 7-year long stint at Berger Paints He holds an MBA in Marketing from Xavier Institute of Management.
Nov 01. 1999 Acquired the aesthetics business.2003 Adani (50:50 joint venture) It acquires Oriental Extractions-Manjal from Oriental Extractions Pvt Ltd. (Derma Rx).5 per cent stake in Sundari) It acquires Oil of Malabar from West Coast India. under the Kaya portfolio.Joint venture • • • • • • • Marico Buys JV Partner’s Stakes(23 per cent stake) . Page 29 of 46 . Jan 03. Ltd.Jan 27. 2006 It acquires Sundari a manufacturer of skin care products (7. 2006 It acquires Hindustan Lever Ltd-Nihar from Unilever . of the Singapore based Derma Rx Asia Pacific Pte.
niche Fabric Care etc. edible oil products like parachute. Hair Oils. of the Singapore based Derma Rx Asia Pacific Pte. Page 30 of 46 . Marico's Products and Services in Hair care.Coconut Oil.A chain of skin care clinics Consumer Products Business – FMCG business in India Marico has strong presence in Indian market & selling skin care. Marico also acquired the aesthetics business. hair care. Egypt.6 billion (about USD 600 Million) during 2009-10. Anti-lice Treatment. Middle East and Bangladesh.A chain of skin care clinics Marico is also present in the Skin Care Solutions segment through Kaya 100 Skin Clinics. International Business Group – International FMCG business: Marico's branded products are present in Bangladesh. Malaysia and South Africa. Skin Care and Healthy Foods generated a Turnover of about Rs. Premium Refined Edible Oils.Business status Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and Wellness space. medicare. the Middle East. manjal. Marico's brands and their extensions occupy leadership positions with significant market shares in most categories. other SAARC countries. Ltd. The Overseas Sales franchise of Marico's Consumer Products is one of the largest amongst Indian Companies and is entirely in branded products and services. These clinics are spread in India. Marico business broadly classified into three Ø Consumer Products Business – FMCG business in India Ø International Business Group – International FMCG business Ø Kaya Limited . Kaya Limited . 26. Post wash hair care. In addition. saffola & oil of malabar.
hair care. Marico’s brands have a total market share of over 55% in the hair styling category. shanti alma. nihar Parachute hair cream Kaya clinic skin Dermatology led skin solution Instant fabric starch Parachute Coconut India oil Mediker Hair cream 27% Less than 60% 80% Revive Besides that in Egypt.(Derma Rx). Category Brand Indicative market share (Apx) 46% 74% Bangla Saffola desh Premium refined oil Anti lice treatment Hair oils 53% 96% 22% Parachute jasmine. Page 31 of 46 . under the Kaya portfolio.
New initiatives & developments: • • • • • • • The company has entered into the south East Asian region through the acquisition of Code 10 from Colgate Palmolive in Malaysia.The volume growth underlying this revenue growth was healthy at 12%. Parachute Gold hair oil. a growth of 18% over FY10. making it a lifestyle brand. Profit after Tax(PAT) for FY11 was INR 286 crore. THE MARICO GROWTH STORY: Marico achieved a turnover of INR 3128 crore during FY11.Saffola into the functional foods category. Page 32 of 46 . It would extend the edible oil brand . Marico plans to launch various innovative products under its two flagship brands Parachute and Saffola. A new plant has been setup for manufacturing Parachute range of products for supplying to the Middle East & North America. Over the past 5 years. Marico Highlights • • • • • 1 out of every 4 Indians is a Marico consumer. thetop line and bottom line have grown at a compounded average growth rate (CAGR) of 22% and27% respectively. a growth of 24% over FY10. Marico distribution network covers over 33 lacks retail outlets Most Marico brands enjoy a leadership position in their respective categories Parachute is the world’s largest coconut oil brand Marico is well connected with 40000 farmers who are cultivating in 1-lac acres of agricultural produce. New product launches during 2010 are Parachute Advanced hot oil. Marico plans to introduce cooling hair oil under its Nihar and Parachute brands.
There are 600.bonus of investment.000 villages in India. So you can contact 63% of 680 million or 700 million population by simply contacting 130000 villages . What has happened from 1990 onwards is that advertisers spent a lot of on and b y default they covered some rural markets as well. As a bonus. So we canimagine how much potential the rural market has? To get the maximum out of this opportunity. rural markets are gaining more importance and we cannot ignoreit. Now with the urban demand hittingthe plateau. That’s almost 12% of the world population. Many companies are entering to the rural market and the potential o f t h e market encourage me to do project work in the rural market • • • • • • • Page 33 of 46 . all organization needs to planstrategically. marketers will tendto throw in their hooks to catch the fish. theseadvertisers started getting certain returns from the rural market . 23% of all villages account for 63% of thetotal rural population. roughly around 73% of the Indian population lives in therural areas. given limited or reasonable budgets to make t h i s happen. Hindustan Lever’s sales turnover in rural market alone is over five thousandCrores that’s a whopping fifty percent of the total sales turnover. which they had actually made for the urban market What marketers and advertisers are today worried about is how to develop ascalable model of influencing the rural consumers’ mind over a large period of t i m e and keep it going.that’s a very large market Since this theoretically constitutes a huge market potential.Brief Industry overview and analysis : SECTOR IDENTIFICATION • If we go by statistics.
India is home to six million retail outlet sand super markets virtually do not exist. Indian economy is poised to remained buoyant and grow at more than 10%. At the macro level. unpackaged home made products. there are also sectors that have under performed.S. While the latter has been crowded by a large number of local players. Indians under 20 are estimated to make up 33% of the population . India's Rs. which is dominated by a handful of global players.and wield proportionately higher spending power. the former has varied between a two-player-scenario to a multi-player one. market for fast moving consumer goods (FMCG).460 billion FMCG market remains highly fragmented with roughly half the market going to unbranded.ABOUT FMCG SECTOR INDIA Markets all over the world have been on a roll in 2003 and the Indian bourses are no exception having gained almost 60% in 2003. while there are sectors that have outperformed this benchmark index. Unlike the U. Means. Changes in demographic composition of the population and thus the market would also continue to impact the FMCG industry. successfully launching and growing market share around a branded product in India presents tremendous challenges. Take distribution as an example. competing on margins. This presents a tremendous opportunity for makers of branded products who can convert consumers to branded products. However. According to a survey by 2013. During this period. The fact is that FMCG is a structurally unattractive industry in which to participate. FMCG registered gains of just 33% on the BSE FMCG Index last year. Other challenges of similar magnitude exist across the FMCG supply chain. The economic growth would impact large proportions of the population thus leading to more money in the hands of the consumer. This makes logistics particularly for new players extremely difficult. Page 34 of 46 . companies that are able to influence and excite such consumers would be those that win in the market place The Indian FMCG market has been divided for a long time between the organized sector and the unorganized sector.
3. 4. Brand loyalties or recommendations of reliable retailer/ dealer drive purchase decisions.Brand switching is often induced by heavy advertisement. 2. Price and income elasticity of demand varies across productsand consumers. They meet the demands of the entire cross sectionof population.Individual items are of small value (small SKU's) although all FMCG products put together account for a significant part of the consumer's budget. recommendation of the retailer or word of mouth Page 35 of 46 . luxury. comfort.STRUCTURAL ANALYSIS OF FMCG INDUSTRY 1. He seldom ever looks at the technical specifications.The products often cater to 3 very distinct but usually wanted for aspects -necessity.Limited inventory of these products (many of which are perishable) are kept by consumer and prefers to purchase them frequently.The consumer spends little time on the purchase decision. 5. as and when required.
2 player in the growing VACNO (Value Added Coconut Oil) Strong brand equity Wide global presence High bargaining power Diversification of business by expansion a flat organizational structure empowered : everyone is a member and not an employee Marico’s structure is dynamic & constantly Good personnel system Good industrial relation with other company Personnel system Organisational and employee characteristics Industrial relations Quality and motivation of personnel rated as one of the most innovative companies by Business Today -Monitor Group Page 36 of 46 . Marico reach approximately 130 Million consumers in about 23 Million households No.Rural market reach one of the largest amongst Indian FMCG company. innovative approach :focused on meeting the emerging needs of the modern day consumers Wide variety of product Understanding of Indian consumer behavior in the hair oil segment Large distribution network all over India.SWOT analysis Strength Centralized payment Decentralized collection Low invest Source of funds Management of funds widespread distribution network of more than 2.5 Million outlets in India and overseas.
Large Domestic Market Growth Marico. Low company image Low promotion Low export level High dependence on Parachute High leverage compared to peers Indian labour laws are relatively unfavorable to the trades and there is an urgent need for labour reforms in India Opportunity India's Rs. hair colorants etc. is betting big on its international business and is open to acquisitions provided they fit in with its overall growth strategy . Growth in international markets Successful entry into beauty and healthcare market Untapped rural market In rural markets. having hardly any share Not having any antidandruff hair oil whose market potential is worth 25% of the total oil market in India.Weakness Fixed price Sales of Rural Area was Slowly Decreasing. Not strong within the shampoo segment.460 billion FMCG market Increase Income Level With Result in Faster Revenue Growth. brands are non-existent India is rich in highly trained manpower Industry has large and diversified segments that provide wide variety of products Population Page 37 of 46 . Need to concentrate within the various others market potential zones like hair shampoo.
Marico's key raw materials include copra.Threats Tax and Regulatory structure Economic slowdown resulting in lower consumer spending. which are commodity crops whose availability isseasonal. corn oil and rice bran oil. kardi oil. sunflower oil. beverage sector remain labour-intensive Labor problems Any change in Government policy Page 38 of 46 . Competition from the diverse players present in the market can cause loss of market share. Intense competition from global brands in international market More job opportunities for the Human Resources around the world International labor Laws Despite technological advances.
To extend the Marico Innovation Foundation's catalytic approach towards Innovation. 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. The purpose of these workshops is to enable social organizations to apply innovation as a key tool to significantly increase their social impact and scale programs. it organises ‘Innovation Workshop for Social Enterprises'.CORPORATE SOCIAL RESPONSIBILITY Marico believes in aligning the interest of all stakeholders in the environment inwhich it operates its shareholders. knowledge dissemination &recognition through its Innovation for India Awards. 1. The overall approach of the Foundation is to be a catalyst thatconcentrates on creation of knowledge through research. government andsociety. Page 39 of 46 . The Foundation has drawn insights from Indian organizations that have challenged convention and achieved quantum growth through innovation organizations that have considered ideas and not resources as their key competitive advantage. Promoting conscious capitalism is an important step towards fulfilling theCompany's purpose. consumers. 'what these innovators did differently to make the impossible happen'. The other knowledge building initiatives of the foundation include alliances between top Indian Business Schools and Indian organizations for a 2-month elective 'live' course on Applied Innovation. One of Foundation's popular researches resulted in a best seller publication ‘Making Breakthrough Innovation Happen: How 11 Indians pulled off the impossible’. Its social innovation research seeks to highlight inspiring work that brings insight into what differentiates social innovation which if scaled up. Marico Innovation Foundation Marico instituted the Marico Innovation Foundation (www.maricoinnovationfoundation. members.org)in 2003. has the power to address some of the fundamental problems in the country. associates. to provide a framework to the Industry and Social Sector to leverage innovationfor quantum growth. The 3-day workshop focuses on innovation tools. Marico has chosen the following areas of focus to make itscontributions towards society and to function responsibly is respect of the impact itsoperations have on the environment.
addressing primary challenges in applying innovation and helping social enterprises identify and put together an innovative roadmap to scale up and create greater impact. 2. impact and scalability. Government of India. Marico has successfully implemented over 50 ideas in the areas of energy. Through the knowledge dissemination mechanism the Foundation is able to propagate the findings of the researches through large-scale mass platforms across India. Sustainability Initiatives Marico's sustainability efforts are aimed towards conserving the ecology. An eminent Governing Council chaired by Dr.knowledge sharing from successful case studies. Based on the criteria of uniqueness. whilst institutionalizing a 'green mindset' amongst Mariconians. has been introduced to recognize innovations where the Central or State government or any wing of the government including public-private partnership has innovated. This is an initiative in association with the Indian Institute of Management. The ideas varied from process changes in manufacturing to investing in equipment that would reduce energy consumption to reduced usage of plastic. the Marico Innovation Foundation institutionalized Innovation for India Awards in 2006. water and paper usage reduction in the last 2 years. innovators. It has shared its learning at business schools. To recognize and applaud outstanding leadership with a focus on innovation. entrepreneurs and academia across industry along with investors and mentors together onto one single platform. These Awards acknowledge & foster leadership with innovative focus in various Business & Social sectors. organizations are selected for a 12-18 month innovation incubation program. After the workshop. Ahmedabad (IIM A) and the Department of Science and Technology.Public Governance. Bharti Airtel and Tata Nano were recognized as Global Game Changers for their spirit of innovation. industry fora and management associations to help take other organizations to take quantum leaps instead of going through the process of rediscovery. R A Mashelkar FRS. 'India's Best Innovations' are declared biennially. In addition its Innovation Exchange is a portal that brings the entire Innovation Ecosystem including researchers. CSIR Bhatnagar Fellow steers the work of the Foundation. Since 2006. 32 innovators have been recognized. The intent of the Awards is to reward projects and businesses that make a real difference to India and the community at large. From 2010 a new category . Page 40 of 46 .
as we intrinsically evaluate the environmental implications of all initiatives.most of our strategies and processes today undergo a Green filter. using video conferencing to reduce travel.celebrating festivals in Page 41 of 46 .We have gained considerable momentum in our efforts to reduce our carbon foot print. Energy • Leveraged the latest technology to reduce power consumption in our datacenter • Improved truck loading efficiency at our factories leading to reduced fuel consumption • Designed the new plant at Baddi in an energy-efficient manner. Be Green’ initiative aims to build a Green culture at Marico. Tree plantations on birthdays. Highlighted below are some key initiatives that had a significant positive impact onthe environment. Learning from here is being replicated across all manufacturing locations • Installed variable frequency drives to reduce energy consumption at our Pondicherry factory • Use of bio mass fuel for boilers Water • Reduction of water consumption at Jalgaon plant by about 36% • Rainwater harvesting across manufacturing sites • Drip irrigation system installed at the Jalgaon factory Paper • Use of recycled paper at Kaya Skin Clinic Plastic • Reduction in PVC Consumption by 90% in plastic bottles The ‘Think Fresh.
safety records andissues related to safety. In pursuit of a hazard and incident-free work environment. periodically review accidents. • Marico bagged the Runners-up trophy at the G-CUBE • Marico (Jalgaon) won the Good Green Governance Award. • Marico (Kanjikode) was conferred with the Kerala State Energy Conservation Commendation Award 2010.in case of power failures. • All plants hold annual safety weeks that aim to increase awareness of potentialhazards and serve as a refresher for key safety procedures. in the FMCG sector. every major project is routed through the Safety department. health and work environment. We have also institutionalized a Green Score Card which measures progress on our Green journey through member feedback. • We have installed diesel engines for the operation of the fire hydrant systems. • Safety Councils at our plants. 3 . • In factories. which guides systematic efforts to continually upgrade our systems. • Marico won 'Silver' at the Greentech Environment Excellence Award 2010. More importantly however. in the large-scale energy consumers category. Teams that have made significant contributions to our sustainability journey are recognized We conducted sessions for our C&FA agents (depots) on the need and benefits of going Green. Page 42 of 46 . They have recently undergone an ISO: 14001 and OHSAS: 18001 (EOHS) audit by an external agency. which has led to considerable savings for the organisation. we have defined an Environmental & Occupational Health & Safety (EOHS) policy. Some of the initiatives we have taken are: • Marico Factories are certified for OHSAS 18001:2007 by certifying body DNV. impart relevant training andimprove communication system to handle emergency situations. it has increased the saliency of the need to adopt sustainable work practices amongst our associates. Safety Marico places prime importance on the safety & health of all its members. Our achievements in this space have been recognized through numerous awards.an eco-friendly way are part of the culture.
Goa. In order to give students an industry perspective. It has also worked towards establishment of other businesses that complement copra supply to augment income of the participating groups. Other Initiatives Most of these initiatives have been primarily in the areas of Education and Training and support for local communities.other training is imparted as per a training calendar. Health and safety seminars are conducted for contract workers. Poanta Sahib and Kanjikode have won the Greetech Award for Safety. In recognition of our achievement Marico plants at Jalgoan.• Emergency preparedness and response procedures are tested regularly by conducting mock drills. 4 . Marico collaborated with the local institutes to offer training programs to students. clothes and emergency lamps and aided renovation at various local government schools. Keepingthis in mind. Marico has donated books. These include training sessions on Supply Chain & TPM. It educates and guides the community in solving problems faced by them in areas of coconut production and development and conversion of the coconuts to copra. Marico Bangladesh has organized communities under the Community based organization. all across India. where there is an opportunity for the Company to give back to the society by empowering the younger generation. stationery. • Members undergo Safety Training as part of their induction. Education & Training: Marico's factories and depots are present in rural areas. • Reinforcement training like Fire fighting is compulsory at least once a year. It covered about 650 Food Safety Officers. Aids Awareness programme for truck drivers by Pondicherry AIDS Control Committee at the Pondicherry Page 43 of 46 . Marico also conducted a training programme on FSSC for Food Safety Officers. Awareness sessions for the local communities were organized. study material. Several plant visits were organized for government primary schools.
conducted skin care camps for Helpage India by dermatologists fromKaya. 2010. during the week of September 26October 2. Joy of Giving: Joy of Giving Week is a not-for-profit organization. run and managed by a group of volunteers. In addition.Money. that promotes 'Giving' in any form. This year. holiday with family. in order to fulfill wishes of children facing life threatening diseases. the key objective being to raise funds that would in turn be ploughed back into the NGO. Marico members also participated in the week-long Joy of Giving Initiative. This gave the NGOs a platform to not only display but also sell their products.to promote 'Giving'. Crafts Bazaar: Marico organized a day-long Crafts Bazaar at several of its locations . through the NGO Goonj and Toy Bank. Members donate denthusiastically for this cause. Marico organized a series of activities at its various locations. Members contributed generously to this cause. owning a doll set. parenting sessions were held for workers' family members at some of the factories. provided financial support for weather risk insurance to farmers and helped in therenovation exercise of the local police station in Egypt.factory.It invited NGOs that support Women Empowerment. Children and Education to set up stalls at its office premises. to further support their individual causes Page 44 of 46 . The donated items were in turn distributed to rural areas and villages. Resources. Time. A variety of wishes were fulfilled. a computer and many more. Skills. books and stationery. Make A Wish Foundation: The foundation collects monetary donations. These included: Vastra Samman & Toy Bank: A week long collection drive that encouraged members to donate old clothes. Support for Local Communities: As part of our contributions to the local communities in which we are present Maricohas contributed towards participation in blood donation camps at factory locations inIndia and overseas. toys.
ranks amongst the top 5premium cosmetics brands in Vietnam. Derma Rx offers solutions to its customers through four clinics and medispas located in Singapore and Kuala Lumpur (Malaysia). (Drx AP). Thuan Phat and others) have a significant presenc eacross the personal care. This acquisition gives Kaya access to a range of highly efficacious skin care products. Its brands (X-Men. the company's premium cosmetics brand. Kaya Limited. acquired the skincare aesthetics business of the Singapore-based DermaRx Asia Pacific Pte Ltd. through its wholly owned subsidiary Marico South Africa (Pty) Ltd (MSA). Phan Quoc Cong and his partner. Acquisition of the brand ‘Ingwe’ Marico. one of the most successful Vietnamese FMCG companies. L'Ovite. Marico's entry into Vietnam Marico strengthened its foot hold in South-East Asia by taking up 85% equity in International Consumer Products Corporation (ICP). Page 45 of 46 . The acquisition of Ingwe brings in a range of products that complements that of MSA's brand. ICP was founded in 2001 by Dr. some of which havebeen introduced in India and are in the process of being introduced in the Middle East. beauty cosmetics and sauces/condiments categories. Marico's wholly owned subsidiary delivering skin care solutions in India. it leads the men's shampoo category. With over 35% market share. X-Men is a leading player in the male grooming segment in Vietnam and has been rated the 2nd Most Trusted Personal Care brand in the country.acquired the brand 'Ingwe' from the South Africa-based Guideline Trading Company in August2010. L'Ovite. in February 2011.Mergers & Acquisitions Acquisition of Derma Rx In May 2010. Hercules. The product range comprises immuno boosters focused on the ethnic consumer in South Africa.
Divestment of brand ‘Sweekar’ Marico divested its refined sunflower oil brand 'Sweekar' to Cargill India Private Limited (Cargill) in March 2011. This is in line with the Company's focus on the wellness platform through its healthy refined edible oils and functional foods brand Saffola Page 46 of 46 .
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