Description
Itexplains about Industry Trends of FMCG industry, PEST Analysis of FMCG Industry, Competitor Analysis of Marico, SWOT analysis, Company Description, General Information of Marico, it's Finance performance, SWOT analysis of Marico and Various Strategies employed.
Company Analysis
Marico Limited
FMCG Industry Analysis: FMCG is acronym of Fast Moving Consumer Goods. The FMCG industry has functions like production, distribution and marketing of consumer packaged goods, these are the products that are consumed at regular intervals. FMCG includes food & beverage, personal care, soft drinks, toiletries, and grocery items, pharmaceuticals, plastic goods, paper & stationery and household products etc. They are called fast moving because they are purchased frequently and consumed quickly, distinct from durables goods which are generally replaced over a period of several years. The industry offers range of job opportunities in functions such as sales, supply chain, finance, marketing, operations, purchasing, human resources, product development and general management. The characteristic of the industry from consumer and marketer is: ? From the consumers' perspective: ? Frequent purchase ? Low involvement (products with strong brand loyalty are exceptions to this rule) ? Low price. From the marketers' perspective: ? High volumes ? Low margin ? Extensive networks for distribution ? High stock turnover
?
Indian perspectives on FMCG industry: The Indian FMCG sector is the fourth largest in the Indian economy and has a market size of $13.1 billion. The sector is growing at rapid pace with well-established distribution networks and intense competition between the organized and unorganized segments. Easy availability of important raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. Penetration level and per capita consumption in many product categories is very low compared to world average standards representing the unexploited market potential. Mushrooming Indian population, particularly the middle class and the rural segments, presents the huge untapped opportunity to FMCG players. It has a strong and competitive MNC presence across the entire value chain. Top 10 FMCG companies in India: 1. 2. 3. 4. 5. Hindustan Unilever Ltd Indian Tobacco Company Nestle India GCMMF (Amul) Dabur India
6. Asian Paints 7. Cadbury India 8. Britannia Industries 9. Procter & Gamble Hygiene and Health Care 10. Marico Industries. Recent Happening in FMCG sector India: ? ? ? ? Coca-Cola to invest $5 bn in India operations Tata-PepsiCo JV eyes Rs 700-cr turnover by ?15 Britannia to set up three new units Nestle India to accelerate investments.
PEST analysis of FMCG Industry: ? POLITICAL FACTORS ? ? ? ? Goods and Sales Tax regime. Developed of infrastructure and transportation system in rural areas for better distribution network.
FDI in retail sector. Subsidies for agriculture sector.
? ECONOMICAL FACTORS ? ? ? ? FMCG is 4th largest sector in Indian economy.
grew 16% in terms of sales last year
Increase in per capita income Increasing GDP
? SOCIAL FACTOR ? ? ? ?
Average Indian spending on groceries and personal care is 40% FMCG sector in rural area is growing at a rate of 40% and 25% in urban area It is generating employment.
Changing the lifestyle of Indians.
? TECHNOLOGY FACTOR ?
FMCG sector doesn?t require high technology and simplified technology is used.
SWOT analysis of FMCG Sector: ? Strengths ? ? ? Operational cost is low. Well established conglomerate are present. Strong distribution network in both rural and urban area.
? Weakness ? ? ? Bogus product. Low exports. Low investing in technology.
? Opportunities ? ? ? Sector has potential for export Improving standard of living Huge local market
? Threads ? ? ? High portion of unorganized trade. The pressure on profit margins due to increasing competition. Tax and regulatory structure.
Company Analysis
Company Description: Marico is an Indian consumer goods company providing consumer products and services in the areas of Health and Beauty. It is consistent ranked among top 10 player of the FMCG industry. Its area of presence ranges from food, hair care and skin care. Its Consumer Product Business (CPB) has established and brands that touched the lives of I out of every Indian over the last two decades. Its beauty and wellness portfolio includes some powerful brands such as Parachute Advansed, Saffola, Nihar, Mediker and Revive achieved leadership positions in their categories. It recently entered into an agreement with Reckitt Benckiser to acquire leading brands like Livon, Set wet, Zatak and other Personal Care brands thereby strengthening its portfolio for the youth and significant presence in the male grooming and post hair wash segments. Every month over 70 million consumer packs from Marico reach 130 million consumer in about 23 household through a widespread distribution network of more than 3.5 million outlets in India. In addition to being a producer of consumer products, Marico also operates Kaya Skin Clinic (81 exist in India, 13 in UAE and 2 in Bangladesh). The services offered by it are designed and supervised by a team of over 250 dermatologists and carried out by certified skin practitioners who have undergone more than 300 hours of training. The services are US FDA approved and tested in-house, and conform to the highest international quality standards. Kaya Skin Clinic has over 600,000 satisfied customers Brands under Marico?s portfolio are brands including Parachute, Saffola, Hair&Care, Nihar, Shanti Amla, Mediker, Revive, Manjal, Kaya Skin Clinic, Aromatic, Fiancee, HairCode, SetWet, Zatak, Eclipse, Xmen, Hercules, Caivil, Code 78 and Black Chic.
Company Profile
? TYPE: Public ? INDUSTRY: Fast Moving Consumer Goods (FMCG) ? FOUNDED: 1990 ? HEADQUATER: Mumbai, India ? PRODUCTS: Edible Oil, Hair Oils, Skin Care, Fabric Care ? REVENUE: 2,046.35 crore (US$408.25 million) ? EMPLOYEES : 1000 (2010) ? BSE: 531642 ? NSE : “MARICO”
Share Holding Pattern: Share holding pattern as on 30/06/2012 Face Value = Re.1
Promoters Indian Promoters Sub total
No. Of Shares 385538520 385538520
Holding 59.82 59.82
Banks Fin. Inst. and Insurance FII's Sub total Private Corporate Bodies NRI's/OCB's/Foreign Others Others Sub total General public Grand total
3850414 165552751 188836981 21513712 23990013 1254158 46757883 23388615 644521999
0.% 60 25.69 29.30 3.34 3.72 0.19 7.25 3.63 100.00
Registered Office: Marico Ltd. "Rang sharda”, Krishnachandra marg, Bandra reclamation, Bandra (West), Mumbai – 40005
Board of Directors:
BOARD OF DIRECTORS
NAME CATEGORY
Anand Kripalu
Non-Executive and Independent
Atul Choksey
Non-Executive and Independent
B.S. Nagesh
Non-Executive and Independent
Harsh Mariwala
Chairman & Managing Director
Hema Ravichandar
Non-Executive and Independent
Nikhil Khattau
Non-Executive and Independent
Rajeev Bakshi
Non-Executive and Independent
Rajen Mariwala
Non-Executive (Promoter)
Marico is a family-owned company with the promoters Harsh Mariwala and family holding 63.45% of the total shares. Though the company is family-owned, it is managed by professionals and the unique rotation policy of the company is also wellknown. Marico is a flat organization with only five levels of reporting between the managing director and an operator on the shop floor. This flat structure helps the company in being more responsive to the environment while providing enriched roles for members. Keeping in mind the fast and ever changing business environs, Marico's structure is dynamic and constantly evolving.
Financial Analysis of company in Past 1 year: Annual results in details Mar ' 12 Other income Stock adjustment Raw material Power and fuel Employee expenses Excise Admin and selling expenses Research and development expenses Expenses capitalised Other expenses Provisions made Depreciation Taxation Net profit / loss Extra ordinary item Prior year adjustments Equity capital Equity dividend rate Agg. Of non-prom. shares (Lacs) Agg. Of non promoter Holding (%) OPM (%) GPM (%) NPM (%) 18.33 -74.10 1,096.33 108.22 213.65 661.29 27.63 59.22 315.33 65.47 61.44 2280.23 37.11 14.80 14.20 13.29 Mar ' 11 15.50 -11.48 830.60 103.11 221.65 566.39 25.21 57.55 235.02 60.93 2225.49 36.52 15.79 15.53 11.48
Analysis: Marico achieved a turnover of INR 3128 crore during FY12, a growth of 18% over FY11.The volume growth underlying this revenue growth was healthy at 12%. With firming of input prices from the second half of FY12 the company took price increases in a phased manner in H2FY12 in select SKUs. Pricing power of its brands enabled the Company to pass on a part of the input cost increase to consumers. Overcoming an input material cost push of 380 basis points, Marico recorded an Operating margin of 13.9% - down only 140basis points Y-o-Y. Each of the company?s three businesses achieved top line growth over the corresponding period in the previous quarter. The Indian Consumer Products Business registered an 11% growth in volume terms – key contributors being Parachute Coconut Oil (in rigid packs) at 10%, Saffola Oils at 16% and Hair Oils at 24%. Marico?s International Business grew by 19% in volume while its skin care solutions business grew by 31% aided by the acquisition of Derma Rx, Singapore. Kaya, sans Derma Rx posted a revenue growth of 7%. Marico has demonstrated Sustainable Profitable Growth over the last decade. Q4FY12 was in Y-o-Y terms the – 42nd consecutive quarter of Turnover growth and the 46th quarter of Net Profit growth. Consumer Products Business Marico?s Consumer Products Business in India grew by 11% in volume and 17% in value during FY12 over FY11. This was achieved through growth across key established portfolios – Parachute coconut oil, Saffola refined edible oil and hair oils as well as the introduction of new products. The Company also achieved a higher rate of growth in its rural markets, taking the share of rural sales in its revenue to 27%. FY12 witnessed a steep rise in copra prices, particularly from the second quarter. The Company passed on a part of this cost push through price increases and decided to absorb a part of this abnormally high upward movement of input costs, in order to continue to grow its franchise. International business Marico?s International business (comprising about 23% of the group?s turnover) grew by 22% over FY11. The underlying business growth was higher at 27%. Kaya Skin Solutions Business During FY11, Kaya?s skin solutions business achieved a turnover if INR 239 crore recording a revenue growth of 31% over FY10, boosted by the acquisition of Derma Rx in May 2010. The Kaya business without Derma Rx achieved a revenue growth of 7% over FY10. On an overall basis Kaya made a small loss of INR 2.30 crore at the PBT level.
SWOT analysis of company: ? Strengths: ? ? ? ? ? ? Marico?s products are leader in their segment. E.g. Parachute hair oil (48% share), Saffola, Mediker, Revive. Company?s strong overseas presence.(Bangladesh, Egypt, South Africa, Middle East, Vietnam, Malaysia) Company?s aggressive M&A policy. (8 M&A in last 18 month) Marico has strong distribution network, because of which it got the distribution rights for some products of its competitor P&G. Fastest growth rate in industry. Company?s consistence innovation and business idea.
? Weakness: ? ? ? ? Major sales are from its two brand Parachute Hair oil and Saffola. Other brands profit is very low. The company has seen a constant decrease in their income per share ratio. There is wide difference in Health care market share to its nearest competitor Agro Tech foods.(Marico=23% and Agro tech34%) Marico?s current ratio is 2.72, which is greater indeed than industry standard.
? Opportunities: ? ? ? ? ?
Huge customer base in India. FMCG industry is directly related to population Cheap labour, Quality product and service in have help India to gain an advantage over other countries. So, high Export potential of industry. Improving living standard of Indian people which reflects the increase in personal care products. Development of rural infrastructure will improve rural income. High growth rate in rural area (40%) and urban area (25%) in terms of sales.
? Threats: ? ? ? ? ? Market is full of bogus products which is affecting sells. Strong competition from international and domestic players. Unorganised market leads to negative growth. Difference in price of low and premium priced brands. Low profit margin over products in industry.
Strategies in past 2 years: ? Merger and Acquisitions ? ? ? ? Acquisition of Paras?s Personal Care business from Reckitt Benckiser in Feb?12. Acquisition of Singapore based aesthetic firm Derma Rx Asia Pacific Pte. Ltd. (Derma Rx). Takeover of International Consumer Products Corp. Takeover of Unibic Biscuits India Pvt. Ltd.
? Product Innovation: ? ? ? ? ? Kaya is extended beyond the skin care solutions. It now offers customize weight loss solutions. Launched perfumed hair oil Nihar to attract consumer. Parachute Advanced Starz range especially for kids. Introduces Saffola Diabetes Management Atta Mix. Saffola oats is introduces and receiving a great response.
? Expansion Strategies: ? ? ? Acquires Paras to enter into Hair gel and deodorant segment. Add 15 kaya clinics annually across the globe. Aggressive M&A internationally.
? Programs for sales: Marico used various programs to improve Sales and making strong relationship with retailers. Outlets Bandhan Mera/Top mera Unnati Dhoom Category Wholesale Key oils Chemist Key oils/Wholesale
Marico is campaigning for its product on Television from a long time back. Some commercials of its product are memorable which includes Saffola, Mediker, Shanti Amla, Saffola arise rice. Many celebrities like Pooja Gour etc. are endorsing Marico?s product, its part of Marico?s marketing strategy.
Awards and Recognitions: Name of Award Best Performing CFO Excellence in Training (Kaya) Marketing campaign Gold Medal Category FMCG& Retail HR Marketing Instituted by CNBC TV18 World HRD congress Institute of advertising Singapore IILF,DEISL WPO Times of India Information week Year 2012 2011 2011
India International logistic forum(IILF) The world star award „Silver? at spikes Asia award Three EDGE awards
Supply Chain Manufacturing Marketing IT
2011 2011 2011 2011
? Achievements: ? ? ? ? Turnover and profit consistently growing over the corresponding quarter of the previous year, for the past 42 quarters and more. Most Marico brands enjoy a leadership position (No. 1 or No. 2) in their respective categories. Parachute is the world?s largest coconut oil brand. Superbrands voted Parachute a Super Brand in UAE &Bangladesh and Hair Code in Egypt.
doc_792194647.docx
Itexplains about Industry Trends of FMCG industry, PEST Analysis of FMCG Industry, Competitor Analysis of Marico, SWOT analysis, Company Description, General Information of Marico, it's Finance performance, SWOT analysis of Marico and Various Strategies employed.
Company Analysis
Marico Limited
FMCG Industry Analysis: FMCG is acronym of Fast Moving Consumer Goods. The FMCG industry has functions like production, distribution and marketing of consumer packaged goods, these are the products that are consumed at regular intervals. FMCG includes food & beverage, personal care, soft drinks, toiletries, and grocery items, pharmaceuticals, plastic goods, paper & stationery and household products etc. They are called fast moving because they are purchased frequently and consumed quickly, distinct from durables goods which are generally replaced over a period of several years. The industry offers range of job opportunities in functions such as sales, supply chain, finance, marketing, operations, purchasing, human resources, product development and general management. The characteristic of the industry from consumer and marketer is: ? From the consumers' perspective: ? Frequent purchase ? Low involvement (products with strong brand loyalty are exceptions to this rule) ? Low price. From the marketers' perspective: ? High volumes ? Low margin ? Extensive networks for distribution ? High stock turnover
?
Indian perspectives on FMCG industry: The Indian FMCG sector is the fourth largest in the Indian economy and has a market size of $13.1 billion. The sector is growing at rapid pace with well-established distribution networks and intense competition between the organized and unorganized segments. Easy availability of important raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. Penetration level and per capita consumption in many product categories is very low compared to world average standards representing the unexploited market potential. Mushrooming Indian population, particularly the middle class and the rural segments, presents the huge untapped opportunity to FMCG players. It has a strong and competitive MNC presence across the entire value chain. Top 10 FMCG companies in India: 1. 2. 3. 4. 5. Hindustan Unilever Ltd Indian Tobacco Company Nestle India GCMMF (Amul) Dabur India
6. Asian Paints 7. Cadbury India 8. Britannia Industries 9. Procter & Gamble Hygiene and Health Care 10. Marico Industries. Recent Happening in FMCG sector India: ? ? ? ? Coca-Cola to invest $5 bn in India operations Tata-PepsiCo JV eyes Rs 700-cr turnover by ?15 Britannia to set up three new units Nestle India to accelerate investments.
PEST analysis of FMCG Industry: ? POLITICAL FACTORS ? ? ? ? Goods and Sales Tax regime. Developed of infrastructure and transportation system in rural areas for better distribution network.
FDI in retail sector. Subsidies for agriculture sector.
? ECONOMICAL FACTORS ? ? ? ? FMCG is 4th largest sector in Indian economy.
grew 16% in terms of sales last year
Increase in per capita income Increasing GDP
? SOCIAL FACTOR ? ? ? ?
Average Indian spending on groceries and personal care is 40% FMCG sector in rural area is growing at a rate of 40% and 25% in urban area It is generating employment.
Changing the lifestyle of Indians.
? TECHNOLOGY FACTOR ?
FMCG sector doesn?t require high technology and simplified technology is used.
SWOT analysis of FMCG Sector: ? Strengths ? ? ? Operational cost is low. Well established conglomerate are present. Strong distribution network in both rural and urban area.
? Weakness ? ? ? Bogus product. Low exports. Low investing in technology.
? Opportunities ? ? ? Sector has potential for export Improving standard of living Huge local market
? Threads ? ? ? High portion of unorganized trade. The pressure on profit margins due to increasing competition. Tax and regulatory structure.
Company Analysis
Company Description: Marico is an Indian consumer goods company providing consumer products and services in the areas of Health and Beauty. It is consistent ranked among top 10 player of the FMCG industry. Its area of presence ranges from food, hair care and skin care. Its Consumer Product Business (CPB) has established and brands that touched the lives of I out of every Indian over the last two decades. Its beauty and wellness portfolio includes some powerful brands such as Parachute Advansed, Saffola, Nihar, Mediker and Revive achieved leadership positions in their categories. It recently entered into an agreement with Reckitt Benckiser to acquire leading brands like Livon, Set wet, Zatak and other Personal Care brands thereby strengthening its portfolio for the youth and significant presence in the male grooming and post hair wash segments. Every month over 70 million consumer packs from Marico reach 130 million consumer in about 23 household through a widespread distribution network of more than 3.5 million outlets in India. In addition to being a producer of consumer products, Marico also operates Kaya Skin Clinic (81 exist in India, 13 in UAE and 2 in Bangladesh). The services offered by it are designed and supervised by a team of over 250 dermatologists and carried out by certified skin practitioners who have undergone more than 300 hours of training. The services are US FDA approved and tested in-house, and conform to the highest international quality standards. Kaya Skin Clinic has over 600,000 satisfied customers Brands under Marico?s portfolio are brands including Parachute, Saffola, Hair&Care, Nihar, Shanti Amla, Mediker, Revive, Manjal, Kaya Skin Clinic, Aromatic, Fiancee, HairCode, SetWet, Zatak, Eclipse, Xmen, Hercules, Caivil, Code 78 and Black Chic.
Company Profile
? TYPE: Public ? INDUSTRY: Fast Moving Consumer Goods (FMCG) ? FOUNDED: 1990 ? HEADQUATER: Mumbai, India ? PRODUCTS: Edible Oil, Hair Oils, Skin Care, Fabric Care ? REVENUE: 2,046.35 crore (US$408.25 million) ? EMPLOYEES : 1000 (2010) ? BSE: 531642 ? NSE : “MARICO”
Share Holding Pattern: Share holding pattern as on 30/06/2012 Face Value = Re.1
Promoters Indian Promoters Sub total
No. Of Shares 385538520 385538520
Holding 59.82 59.82
Banks Fin. Inst. and Insurance FII's Sub total Private Corporate Bodies NRI's/OCB's/Foreign Others Others Sub total General public Grand total
3850414 165552751 188836981 21513712 23990013 1254158 46757883 23388615 644521999
0.% 60 25.69 29.30 3.34 3.72 0.19 7.25 3.63 100.00
Registered Office: Marico Ltd. "Rang sharda”, Krishnachandra marg, Bandra reclamation, Bandra (West), Mumbai – 40005
Board of Directors:
BOARD OF DIRECTORS
NAME CATEGORY
Anand Kripalu
Non-Executive and Independent
Atul Choksey
Non-Executive and Independent
B.S. Nagesh
Non-Executive and Independent
Harsh Mariwala
Chairman & Managing Director
Hema Ravichandar
Non-Executive and Independent
Nikhil Khattau
Non-Executive and Independent
Rajeev Bakshi
Non-Executive and Independent
Rajen Mariwala
Non-Executive (Promoter)
Marico is a family-owned company with the promoters Harsh Mariwala and family holding 63.45% of the total shares. Though the company is family-owned, it is managed by professionals and the unique rotation policy of the company is also wellknown. Marico is a flat organization with only five levels of reporting between the managing director and an operator on the shop floor. This flat structure helps the company in being more responsive to the environment while providing enriched roles for members. Keeping in mind the fast and ever changing business environs, Marico's structure is dynamic and constantly evolving.
Financial Analysis of company in Past 1 year: Annual results in details Mar ' 12 Other income Stock adjustment Raw material Power and fuel Employee expenses Excise Admin and selling expenses Research and development expenses Expenses capitalised Other expenses Provisions made Depreciation Taxation Net profit / loss Extra ordinary item Prior year adjustments Equity capital Equity dividend rate Agg. Of non-prom. shares (Lacs) Agg. Of non promoter Holding (%) OPM (%) GPM (%) NPM (%) 18.33 -74.10 1,096.33 108.22 213.65 661.29 27.63 59.22 315.33 65.47 61.44 2280.23 37.11 14.80 14.20 13.29 Mar ' 11 15.50 -11.48 830.60 103.11 221.65 566.39 25.21 57.55 235.02 60.93 2225.49 36.52 15.79 15.53 11.48
Analysis: Marico achieved a turnover of INR 3128 crore during FY12, a growth of 18% over FY11.The volume growth underlying this revenue growth was healthy at 12%. With firming of input prices from the second half of FY12 the company took price increases in a phased manner in H2FY12 in select SKUs. Pricing power of its brands enabled the Company to pass on a part of the input cost increase to consumers. Overcoming an input material cost push of 380 basis points, Marico recorded an Operating margin of 13.9% - down only 140basis points Y-o-Y. Each of the company?s three businesses achieved top line growth over the corresponding period in the previous quarter. The Indian Consumer Products Business registered an 11% growth in volume terms – key contributors being Parachute Coconut Oil (in rigid packs) at 10%, Saffola Oils at 16% and Hair Oils at 24%. Marico?s International Business grew by 19% in volume while its skin care solutions business grew by 31% aided by the acquisition of Derma Rx, Singapore. Kaya, sans Derma Rx posted a revenue growth of 7%. Marico has demonstrated Sustainable Profitable Growth over the last decade. Q4FY12 was in Y-o-Y terms the – 42nd consecutive quarter of Turnover growth and the 46th quarter of Net Profit growth. Consumer Products Business Marico?s Consumer Products Business in India grew by 11% in volume and 17% in value during FY12 over FY11. This was achieved through growth across key established portfolios – Parachute coconut oil, Saffola refined edible oil and hair oils as well as the introduction of new products. The Company also achieved a higher rate of growth in its rural markets, taking the share of rural sales in its revenue to 27%. FY12 witnessed a steep rise in copra prices, particularly from the second quarter. The Company passed on a part of this cost push through price increases and decided to absorb a part of this abnormally high upward movement of input costs, in order to continue to grow its franchise. International business Marico?s International business (comprising about 23% of the group?s turnover) grew by 22% over FY11. The underlying business growth was higher at 27%. Kaya Skin Solutions Business During FY11, Kaya?s skin solutions business achieved a turnover if INR 239 crore recording a revenue growth of 31% over FY10, boosted by the acquisition of Derma Rx in May 2010. The Kaya business without Derma Rx achieved a revenue growth of 7% over FY10. On an overall basis Kaya made a small loss of INR 2.30 crore at the PBT level.
SWOT analysis of company: ? Strengths: ? ? ? ? ? ? Marico?s products are leader in their segment. E.g. Parachute hair oil (48% share), Saffola, Mediker, Revive. Company?s strong overseas presence.(Bangladesh, Egypt, South Africa, Middle East, Vietnam, Malaysia) Company?s aggressive M&A policy. (8 M&A in last 18 month) Marico has strong distribution network, because of which it got the distribution rights for some products of its competitor P&G. Fastest growth rate in industry. Company?s consistence innovation and business idea.
? Weakness: ? ? ? ? Major sales are from its two brand Parachute Hair oil and Saffola. Other brands profit is very low. The company has seen a constant decrease in their income per share ratio. There is wide difference in Health care market share to its nearest competitor Agro Tech foods.(Marico=23% and Agro tech34%) Marico?s current ratio is 2.72, which is greater indeed than industry standard.
? Opportunities: ? ? ? ? ?
Huge customer base in India. FMCG industry is directly related to population Cheap labour, Quality product and service in have help India to gain an advantage over other countries. So, high Export potential of industry. Improving living standard of Indian people which reflects the increase in personal care products. Development of rural infrastructure will improve rural income. High growth rate in rural area (40%) and urban area (25%) in terms of sales.
? Threats: ? ? ? ? ? Market is full of bogus products which is affecting sells. Strong competition from international and domestic players. Unorganised market leads to negative growth. Difference in price of low and premium priced brands. Low profit margin over products in industry.
Strategies in past 2 years: ? Merger and Acquisitions ? ? ? ? Acquisition of Paras?s Personal Care business from Reckitt Benckiser in Feb?12. Acquisition of Singapore based aesthetic firm Derma Rx Asia Pacific Pte. Ltd. (Derma Rx). Takeover of International Consumer Products Corp. Takeover of Unibic Biscuits India Pvt. Ltd.
? Product Innovation: ? ? ? ? ? Kaya is extended beyond the skin care solutions. It now offers customize weight loss solutions. Launched perfumed hair oil Nihar to attract consumer. Parachute Advanced Starz range especially for kids. Introduces Saffola Diabetes Management Atta Mix. Saffola oats is introduces and receiving a great response.
? Expansion Strategies: ? ? ? Acquires Paras to enter into Hair gel and deodorant segment. Add 15 kaya clinics annually across the globe. Aggressive M&A internationally.
? Programs for sales: Marico used various programs to improve Sales and making strong relationship with retailers. Outlets Bandhan Mera/Top mera Unnati Dhoom Category Wholesale Key oils Chemist Key oils/Wholesale
Marico is campaigning for its product on Television from a long time back. Some commercials of its product are memorable which includes Saffola, Mediker, Shanti Amla, Saffola arise rice. Many celebrities like Pooja Gour etc. are endorsing Marico?s product, its part of Marico?s marketing strategy.
Awards and Recognitions: Name of Award Best Performing CFO Excellence in Training (Kaya) Marketing campaign Gold Medal Category FMCG& Retail HR Marketing Instituted by CNBC TV18 World HRD congress Institute of advertising Singapore IILF,DEISL WPO Times of India Information week Year 2012 2011 2011
India International logistic forum(IILF) The world star award „Silver? at spikes Asia award Three EDGE awards
Supply Chain Manufacturing Marketing IT
2011 2011 2011 2011
? Achievements: ? ? ? ? Turnover and profit consistently growing over the corresponding quarter of the previous year, for the past 42 quarters and more. Most Marico brands enjoy a leadership position (No. 1 or No. 2) in their respective categories. Parachute is the world?s largest coconut oil brand. Superbrands voted Parachute a Super Brand in UAE &Bangladesh and Hair Code in Egypt.
doc_792194647.docx