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COMPANY ANALYSIS ON

MARICO

Submitted by: Sukumar Macherla


OVERVIEW

Marico is one of India's leading Consumer Products & Services companies in the global beauty and
wellness space. From its foundations, Marico has worked outside the box, to bring innovation to its
customers through the careful creation of continuous and sustainable change.

Today, 1 out of 3 Indians uses a Marico product. From cooking oil with 'LoSorb Technology', to rice
that keeps you active, personalised skinscription services and hair oil that comes with a battery-
powered head massager, Marico believes that it pays to think differently. At our offices, everyone is
a member, not an employee. We have a flat organisational structure, with just five levels between the
Managing Director and the shop floor operator. We believe in transforming the lives of all
stakeholders be it our suppliers, farmers, distributors or shareholders by helping them maximise their
true potential and it truly articulates the true Mariconian spirit – to be more. Every day.

Marico is present in more than 25 countries across Asia and the African continent. The company
recorded a turnover of Rs. 40.0 billion (~USD 729 Million) in 2011-12. Our vast portfolio of
enduring brands such as Parachute Advansed, Saffola, Hair & Care, Nihar, Mediker, Revive and
Manjal are leading household names today. In addition , the company has recently acquired the
erstwhile personal care business from Reckitt Benckiser. Marico now owns popular brands like Set
Wet, Livon, Zatak , and other personal care brands thereby strengthening its portfolio for the youth
and creating a significant presence in the male grooming and post hair wash segments. Marico's
international portfolio includes brands like Fiancée, Haircode, Camelia, Aromatic, Caivil, Hercules,
BlackChic, Code 10 and Ingwe. We are also present in the Skin Care Solutions segment through
Kaya Skin Clinics in India, Middle East and Bangladesh and Derma Rx in Singapore. Our consumers
transcend countries and customs. We are a company that believes in challenging the status quo, to
create growth and continuity in change.

 The company was founded in 1857 By Kanji Morarji and is headquartered in Mumbai ,India.

 Marico Limited, together with its various consumer goods and services in India, the Middle
East, Asian countries, Egypt, and the United States.

 The company provides coconut oils, edible oils, hair oils and other hair care products, fabric
care products, processed foods, soaps, and baby care products, as well as skin care and
ayurvedic products.

VISION & MISSION

VISION

 Consumers: For they are the reason we exist

 Membership: For a sense of ownership empowers us.

 Excellence: For it unleashes our potential

 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, and second: a framework to leverage innovation for quantum growth.

GOALS AND OBJECTIVES

 Company commit itself to improving the quality of people's lives in several parts of the
world, through branded Beauty & Companyl products and solutions.

 Company shall offer brands that enhance the appeal and nourishment of hair and skin
through distinctive products and services based on the goodness of coconut, other natural
substances .

 Company shall make available brands that contribute to healthy living, through, both
products drawn from agriculture offered in natural or processed forms, and services.

 Company shall develop, in parts of the world beyond the Indian Subcontinent, a franchise
for the branded products and services.

 Company shall aim to be a leader in each of its businesses through heightened sensitivity to
consumer needs, setting up of new ideas.

 Company shall share prosperity amongst members, shareholders and associates, who
contribute in improving equity and market value.

 Company shall acquire the status of a friendly corporate citizen, contributing to the
betterment of neighborhood communities, where Company are significantly present.

GROUP EXECUTIVE COMMITTEE

Harsh Mariwala - Chairman & Managing Director


Saugata Gupta - CEO - Consumer Products Business
Vijay Subramaniam - CEO - International Business Group
Ajay Pahwa - CEO - Kaya Ltd
Milind Sarwate - Group CFO

EXECUTIVE VICE PRESIDENTS

Ashutosh Telang
B. Sridhar Chaitanya Deshpande
Debashish Neogi
Sameer Satpathy
Sudhakar Mhaskar
Suresh Jagirdar
Vivek Karve
John Mason
Syam Prasad

BOARD OF DIRECTORS

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)
INDIAN BRANDS

OVERVIEW

Over the past 20 years, Marico has been continually improvising and building new brands.
Marico's Consumer Products Business houses well-known brands such as Parachute, Saffola,
Hair & Care, Nihar, Mediker, Revive, among others, which occupy leadership positions in most
categories- Coconut Oil, Hair Oils, Post wash hair care, Anti-lice Treatment, Premium Refined
Edible Oils, niche Fabric Care etc. With the acquisition of the erstwhile personal care business
from Reckitt Benckiser Marico now owns popular brands like Set Wet, Livon, Zatak , and other
personal care brands thereby strengthening its portfolio for the youth and creating a significant
presence in the male grooming and post hair wash segments. 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.

PARACHUTE COCONUT OIL

A market leader in its category and one of our oldest brands, Parachute coconut oil today stands
for purity and quality. Over the years, the brand has seen a lot of innovations in packaging, sizing
and tamper-proofing. Parachute enjoys enormous loyalty in urban, semi-urban and rural sectors.

SAFFOLA

Saffola is a heart care brand in the foods category in India. It has several products in its portfolio
which include edible oils, functional foods, rice and salt. Saffola is known to be a brand which is
good for heart and recommended by doctors*. For the last 10 years, Saffolalife has been
educating Indians on preventive heart care through the year.
Since risk factors of Cardio Vascular Diseases (CVD) start early in India and prevention of these
diseases requires an integrated life course approach, Saffola has over the years built an
ecosystem which works actively towards adopting a healthier lifestyle.

SAFFOLA OILS

New Saffola
The recent understandings in the role of oil in cardiovascular diseases have shown benefits
attached with MUFA. The MUFA combined with the proven cholesterol reducing benefits of
Oryzanol resulted in formulation of New Saffola. New Saffola contains High Oleic Safflower,
which is also known as Kardi Oil and Rice Bran Oil. New Saffola contains almost 60% MUFA
along with Oryzanol and Vitamin E. New Saffola provides the benefits attached to MUFA along
with the proven cholesterol lowering effect of Oryzanol.

Saffola comes with 'LoSorb Technology', due to which oil gets absorbed less, reducing oil
consumption in your diet. Saffola oils are ‘Free of trans fats’. Saffola encourages you and your
family to take care of your heart by using less oil, following a low saturated fat diet with regular
exercise and a balanced lifestyle.

Saffola Gold
Studies have shown that a right combination of Safflower Oil and Rice Bran Oil is more
effective in reducing cholesterol than each of the oils singly. Saffola Gold contains Rice Bran Oil
and Safflower oil, which is also known as Kardi Oil. The heart healthy nutrients in Rice Bran Oil
such as oryzanol are known for their cholesterol lowering ability. Safflower oil has the highest
levels of Linoleic acid, an omega-6-polyunsaturated fatty acid, which is well known in reducing
cholesterol levels.

Saffola comes with 'LoSorb Technology', due to which oil gets absorbed less, reducing oil
consumption in your diet. Saffola oils are ‘Free of trans fats’. Saffola encourages you and your
family to take care of your heart by using less oil, following a low saturated fat diet with regular
exercise and a balanced lifestyle.

Saffola Active
Saffola Active provides Omega 3 and Oryzanol, two important compounds known for promoting
heart health. To get these benefits, Saffola Active is made with rice bran oil and soyabean oil.
Saffola Active also contains Vitamin E. The heart healthy nutrients in rice bran oil such as
oryzanol are known for their cholesterol lowering ability. Soyabean Oil is a good source of
Omega-3. Omega-3 helps in lowering cardiovascular risk factors along with several other health
benefits.

Saffola comes with 'LoSorb Technology', due to which oil gets absorbed less, reducing oil
consumption in your diet. Saffola oils are ‘Free of trans fats’. Saffola encourages you and your
family to take care of your heart by using less oil, following a low saturated fat diet with regular
exercise and a balanced lifestyle.
Saffola Tasty
Saffola Tasty was the first Saffola blend. This oil blend provides the benefits of two oils, thereby
giving you added value. It provides the high poly unsaturated fatty acid of Safflower safflower
oil and the taste of Corn oil. Safflower safflower oil, which is also known as Kardi Oil has the
highest levels of linoleic acid, an omega-6-polyunsaturated fatty acid, which is well known in
reducing cholesterol levels. Corn oil has a unique taste and aroma.

Saffola comes with 'LoSorb Technology', due to which oil gets absorbed less, reducing oil
consumption in your diet. Saffola oils are ‘Free of trans fats’. Saffola encourages you and your
family to take care of your heart by using less oil, following a low saturated fat diet with regular
exercise and a balanced lifestyle.

SAFFOLA ARISE

Saffola Arise Basmati Gold is cultivated in the fertile lands of Punjab, Haryana and U.P. It is
specially selected from these sub-Himalayan regions so that you get 100% pure Basmati rice.
The grains are aged along with rice bran and husk, and when cooked, separate and do not stick.
Its lower glycemic index allows the rice to be digested slower, which keeps one feeling light
after consumption.

Saffola Arise is available in three variants; Everyday, Premium Grain and Basmati Gold.

SAFFOLA OATS

Saffola Oats, launched in 2010, is a healthy, nutritious and active way to start your day. The
100% natural, wholegrain oats are a great source of soluble fibre, which helps to reduce
cholesterol and keeps your heart strong. Saffola Oats also keeps you feeling full for longer, thus
reducing hunger pangs and unhealthy snacking. Saffola Oats are double-steamed for a uniform
texture and are specially formulated with high iron and protein content.

Saffola Oats are available in 200gm, 400gm and 1kg packs

Saffola Muesli- The Smarter* Way to Stay Fit^.

Saffola Muesli is a delicious wholegrain breakfast with a 'smart mix' of 5 healthy ingredients -
oats, cornflakes, wheat flakes, almonds and raisins. The key ingredient is oats, which helps
reduce cholesterol and helps keep your heart strong**. Saffola Muesli also has high fibre and is a
good source of protein.

Saffola Muesli has a crunchy texture, flavour, aroma and comes pre-mixed with tangy raisins and
crackling almonds - making it a delightful taste experience. Just add milk and enjoy your bowl of
Saffola Muesli breakfast.

Kick-start your day with any of the 3 exciting flavours,


Nutty Crunch
Fruit Rush
Lite n Natural

Saffola Muesli is available in 225gm and 400gm boxes and 25gm pouches.

SAFFOLA CHOLESTEROL MANAGEMENT

Saffola Cholesterol Management Atta Mix is a specialized functional food from Saffola.
Launched in 2005, Saffola CM Atta Mix gives you a simple way to help manage cholesterol. The
atta mix is a 100% natural, vegetarian mix of ingredients like soya, oats, barley, maize and
psyllium husk. It can be used mixed with regular atta, and does not alter the taste of rotis.

Saffola CM Atta Mix is available in 500gm box (to mix with 2kg of atta) and 1kg box (to mix
with 4kg of atta)

HAIR AND CARE

Distinctively youthful and contemporary, Hair & Care has always been the young girl’s choice
as she takes her first steps into the adult world.

Hair & Care offers the potent nourishment of Herbal Proteins extracted from Neem and Tulsi
that that deeply nourish hair and help reduce hairfall by upto 50%*. And its unique non-sticky
formula gives you free-flowing, stylish hair even after oiling!
Hair & Care Herbal Proteins is available in 50ml, 100ml, 200ml, 300ml and 500ml bottles.

And for those special moments when your hair needs some extra style, Hair & Care offers you
Silk-n-Shine Hair Potion. Enriched with the natural goodness of Fruit Vitamins, its unique
formulation instantly makes hair soft, smooth and silky. So that your hair shines with style as do
you!

H&C Silk-n-Shine is available in 3ml sachets and 18ml, 50ml and 100ml bottles.

NIHAR UTTAM

Nihar Naturals Uttam Coconut Oil: A 100% pure coconut oil from the house of Nihar; available in a
modern packaging that keeps oil pure till the last drop.

NIHAR NATURALS

one of our most diversified brands, Nihar Naturals is the market leader in East India.
Nihar Naturals hair oils range offers quality solutions for different hair care needs of the women
of today. The current product portfolio includes:Nihar Naturals Perfumed Coconut Hair Oil, a
unique combination of Coconut Oil and Methi extracts, available in two fragrances - Rose and
Jasmine.

Nihar Shanti Amla Hair Oil, one of the fastest growing hair oils in India.

We now also have two new offerings, Nihar Naturals Almond hair oil & Nihar Naturals Cooling
oil.

LIVON

Livon has 2 offerings: Livon Silky Potion and Livon Hair Gain Tonic

LIVON SILKY POTION

Bad hair days are history. Livon Silky Potion, a brand that built the serum category in India, puts
an end to tangled, dry, and unmanageable hair.

Livon Silky Potion's unique CutiSoft Formula instantly smoothens and softens hair cuticles,
transforming dry, rough and brittle hair into smooth, soft and silky hair. It eases tangles and
knots, making hair easy to comb. It makes unmanageable frizzy hair easily manageable by
straightening it and giving it a well-groomed look. Livon Silky Potion also contains Vitamin E
that nourishes hair. So wish away those annoying hair worries with Livon's tender loving care.

Dab Livon Silky Potion onto towel-dried hair post-shampoo, or just dab it onto hair anytime to
dazzle with smooth and silky hair throughout the day.

Livon Silky Potion is available in 20 ml, 50 ml and 100 ml bottles and in 3 ml sachets.

LIVON HAIR GAIN TONICIt's logic, not magic. Livon Hair Gain Tonic works because it's a
product born out of advanced and groundbreaking research on Indian hair.
Livon Hair Gain Tonic is a solution that not only addresses hair fall problems, but also helps in
accelerating healthy hair growth. It is enriched with Root Energisers, a breakthrough formulation
that comprises hair re-growth molecules, and it has a three-way action on affected hair follicles:

1. It penetrates to the root of the hair follicle and clears up the


debris around it.
2. It restores proper circulation of blood and nutrients to the
hair follicle
3. It also prevents shrinking of the hair follicle and helps it grow
in a healthy cycle

Livon Hair Gain Tonic is available in a 150 ml bottle.

SET WET HAIR GELS AND DEODORANTS

Increase your style quotient with Set Wet Hair Gels and Set Wet Deos.

There is no telling how far your looks can go with well-styled hair. And how about styling your
hair differently for different occasions? Well-set for the day and spikes for the after-hours?

Whatever the occasion and whatever be your hair type, Set Wet's range of Alchohol-Free hair
gels lets you get creative with your hair. And once done, it helps you keep your hair stylish for a
long time.

Set Wet Hair Gels have become a very popular style-accessory for young men. The brand is a
best-seller in its category in India.

Style your hair with any of the 3 variants: Cool Hold, Vertical Hold and Wet Look.

Each is available in 10 ml, 50 ml and 100 ml tubes. So go ahead and choose one which
complements your unique style, whether cool and suave or spunky and wild!

SET WET DEOS


With six of the hottest, sexiest fragrances, Set Wet deodorant spray perfumes are must-haves for
today's confident and stylish man.

Set Wet deos are available in 200 ml cans in the following styles: Cool, Sexy, Macho,
Adventurer, Casanova and Romeo.

So go ahead and choose one which complements your unique style, whether cool or wild, suave
or bold, casual or intense!

SET WET ZOTAK

ZOTAK DEODORANTS

In the days of instant karma who can wait for the pleasures of passion? Zatak is a one-of-its-kind
deo. It comes with 4 uniquely Indian fragrances. Each strong and sharp enough to just Zatak her!

In Cool, Musk, Spicy and Woody variants, Zatak comes packed in sleek and nifty 200 ml cans.

MEDIKAR
Any mother with school-going children will understand and empathize with the pain that
children go through during lice removal – Mediker is the answer to this problem. Launched in
1968, Mediker has become a household name that the nation trusts. It was acquired by Marico in
1999 from Procter & Gamble. Mediker Anti-Lice Treatment has transformed lice removal into a
painless activity, replacing the traditionally-painful lice comb with a wash-off format. Mediker
contains actives such as neem, camphor and sitaphal extracts.

Mediker is also available in an Oil format, for those who prefer using an oil in their regular
regime. It contains coconut oil, in addition to neem and camphor.

Mediker has been clinically tested and proven to be completely safe to use, with no side-effects.
Mediker Anti-Lice Treatment Shampoo is available in a 50ml bottle as well as 9ml and 5.5ml
sachets. Mediker Natural Anti-Lice Oil is available in 15ml, 25ml and 50ml bottles.

REVIVE

Revive was launched in 1993 and is another Marico product that created a market where none
existed. Revive Powder gave consumers the convenience of an instant cold water starch at home.
In 2007 Revive Liquid was launched, which, unlike traditional powders, leaves no patches on
coloured clothes. Revive Liquid can also be used on terry-cottons. The versatility of this product
was proven by its 15% market share in the first 8 months of launch.

Revive Powder is available in a 50gm sachet, 200gm box and


400gm jar.

Revive Liquid is available in 20 gm sachet and 45gm, 100gm, 200gm and 400 gm bottles

MANJAL

Bringing the power and benefits of Ayurveda to everyone, Manjal is a soap that contains natural
extracts of neem, turmeric, hibiscus, sandalwood and ayurvedic oils. Manjal is a soap for the
whole family. Turmeric, with its antiseptic properties, cleans from within the pores, while neem
is a great anti-bacterial for the skin. Ayurvedic oils moisturise and sandalwood leaves behind a
gentle fragrance.

BRANDS TARGETED CUSTOMER'S

 PARACHUTE •Primary Target Women Of All Age's

 PARACHUTE
ADVANCED •Young Girls (College & School Going)

 HAIR & CARE •Appealing To Both Men & Women of All Age's

•Primary User the Young Age Group

 SHANTI AMLA •Customer Looking for Value for Money (H.OIL+Badam)

 SILK & SHINE •Primary Target Female Of age 18 – 34

 AFTER SHOWER •Primary Target Young Males 18 – 34

 MEDIKER •Young Children Age Group 3-13 (Due to Lice


Problem)

 SWEEKAR •Primary Target Housewives (Due to Economic+Healthy


Life for Family)

 SAFFOLA •All Health Conscious Consumers (Specially for Heart

Patient's)

 REVIVE •Housewives of Urban Area (Higher & Middle Class).

MARICO’s PRESENCE

INDIA

Marico's Consumer Products Business (CPB) has established and nurtured brands that touch the
lives of 1 out of 3 Indians* over the last two decades. Its beauty and wellness portfolio includes
some powerful brands such as Parachute, Parachute Advansed, Saffola, Nihar, Hair & Care,
Mediker and Revive, amongst others, which occupy leadership positions in their respective
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 creating a significant presence in the male grooming and post hair wash segments.

Every month, over 70 Million consumer packs from Marico reach ~130 Million consumers in
about 23 Million households, through a widespread distribution network of more than 3.5
Million outlets in India. During 2010-11, Marico's Consumer Product Business revenues grew by
~17% led by an underlying volume growth of ~11%. Backed by a robust IT enabled supply
chain, the business achieved a higher growth rate in rural markets, taking its share of rural sales
revenue to 30%. Marico's CPB employs over 810 members across India and has delivered a 5yr
CAGR of 18% in topline and 17% in bottom line.

EGYPT

Marico’s journey in Egypt began in 2006-07, when it acquired leading local hair care brands –
Fiancee and HairCode. Both brands were acquired along with their manufacturing facilities.
Marico currently enjoys a leadership position in the hair styling category, commanding a market
share of more than 55%. It is present in the hair styling market with its range of Hair Gels, Hair
Creams as well as Hair Cream-Gels.

In a further signal of its commitment to Egypt, Marico set up a Greenfield factory in 2008 in
Sadaat city, around 150 km outside Cairo. With this factory, Marico intends to make Egypt a
sourcing hub for products sold within the Middle East and North African (MENA) region. Two
of Marico’s factories were also awarded the ISO 9001 certification in 2009-10.

In 2010, Marico launched the Parachute range of hair creams and hair oils in the local Egyptian
market. Through its innovative marketing programmes and digital marketing initiatives, Hair
Code won the coveted Super Brand status in 2009. It also received the Gold for Creative
Advertising at Summit International in 2009.

Marico Egypt employs over 200 personnel and has also conducted training programmes in
different areas of operations, including Sales & Marketing, Quality, Finance, HR and Marico
Values and Productivity

VIETNAM

In February 2011, Marico entered the Vietnam market by acquiring an 85% equity stake in
International Consumer Products Corporation (ICP)-one of the most successful Vietnamese
FMCG companies.

ICP was founded by Dr. Phan Quoc Cong and his partner in 2001. It owns brands like X-Men,
L’ovite and ThuanPhat, which have a significant presence in the personal care, beauty cosmetics
and foods categories. X-Men is a leading player in the male grooming segment, in Vietnam, and
is the 2nd Most Trusted Personal Care brand in the country. It leads the men’s shampoo category
with over 35% market share. It has recently extended its presence to other male segments such as
deodorants and shower gels.

L’Ovite, the company’s premium cosmetics brand, ranks amongst


the top 5 premium cosmetics brands in Vietnam. ThuanPhat participates in the rapidly growing
branded sauces and condiments market in Vietnam.

BANGLADESH
In 2002 Marico established a factory on foreign soil - Bangladesh. Marico was the first Indian
company to have a manufacturing location in Bangladesh. The steady growth of CNO franchise,
with better product quality along with direct and indirect distribution provided a good
opportunity for IBG business in Bangladesh. In Bangladesh, Marico operates through Marico
Bangladesh Limited (MBL), a wholly owned subsidiary with its manufacturing facility at
Mouchak, near Gazipur. This is an ISO 9001 certified facility.

MARICO’s journey in Bangladesh

Started operations in 2000


Parachute Coconut Oil is a leader in its category.
Acquired 2 soap brands – Camelia and Aromatic – in 2005
Launched Haircode Hair Dye in 2009
Haircode achieved a market share of over 15% in its first full year of operations
Marico Bangladesh listed on the Dhaka and Chittagong Stock Exchange in 2009
Marico is amongst the top 3 FMCG MNC companies in Bangladesh
Launched Saffola Gold, a premium edible oil, in 2010
Parachute has been amongst top 10 most trusted brands continuously in the years 2008, 2009
and 2010.
Lauched Parachute Advansed Cooling Hail Oil in 2011.

SOUTH AFRICA

Marico entered the Ethnic Hair Care and Healthcare market in South Africa in 2007-08, with
the acquisition of the Consumer Division of Enaleni Pharmaceuticals Ltd. Over the years
Marico has seen its market share grow in its core segments.
Marico introduced various innovations in the market like flavours in the Health Care segment
and a new range of scalp protector and relaxers in the hair care segments. to help it grow.
In a bid to boost global integration, Marico expanded its SAP platform to Marico South
Africa, which helped create an integrated landscape with better data visibility.
Marico further made a bolt-on acquisition with the Ingwe/Medi-Pac range of healthcare
products in 2010. With further expansion into Sub-Saharan Africa, the African journey of
Marico is only set to grow

MALAYSIA

Marico entered Malaysia’s hair styling market in January 2010, with the acquisition of the
Code 10 brand from Colgate-Palmolive. Backed by strong consumer equity and investments,
Code 10 is set to chart a new growth trajectory, providing Marico a platform for faster
organic growth in this market. Marico leads the market in key hair styling segments in the
MENA region and hopes to replicate the same in South-East Asia.

MIDDLE EAST
Marico entered the GCC region in the 90s and has been expanding its footprint across the
Middle East with Parachute presence also in Levant, Iraq, Yemen etc. With a steady increase
in its product range and an ever widening distribution system, Marico’s progress in the
Middle East is heading for rapid growth.
Over the years, Parachute has become a formidable brand in the Gulf region and Parachute
Hair Cream is a leader in its category in several markets. Parachute bagged the Silver in the
'Outstanding Marketing Achievement Award' category in Gulf Marketing Review (GMR)
2008. Parachute was also awarded the SuperBrand status in 2009 in the UAE.

COMPETITORS IN INDIA

 Amar Remedies Ltd.

 Ador Multiproducts Ltd.

 Bajaj Corp Ltd.

 Colgate-Palmolive (India) Ltd.

 Dabur India Ltd.

 Emami Ltd.

 Farmax India Ltd.

 Fem Care Pharma Ltd.

 Gillette India Ltd.

 GKB Ophthalmics Ltd.

 Godrej Consumer Products Ltd.

 Godrej Industries Ltd.

 Hindustan Unilever Ltd.

 J L Morison (India) Ltd.

 JHS Svendgaard Laboratories Ltd.

 Jyothy Laboratories Ltd.

 Jyoti Cosmetics (Exim) Ltd.

 My Fair Lady Ltd.

 Paramount Cosmetics (I) Ltd.

 Procter & Gamble Hygiene & Healthcare Ltd.


 RayBan Sun Optics India Ltd.

 Velvette International Pharma Products Ltd.

BANKERS

 Axis Bank Ltd

 Citibank

 HDFC Bank Ltd

 HSBC

 ICICI Bank Ltd

 Kotak Mahindra Bank Ltd

 Standard Chartered Bank

 State Bank of India

MARKET SHARE V/S MARKET GROWTH


1.STAR

 It is represented a product having high relative market share and high market growth rate.

 It need capital over and above its cash flow to maintain it’s market share. It provides cash for
growing stars. It suggested Expansion Strategy for STAR ..

 E.G. KAYA SKIN CARE AND PERACHUTS COCONUT OIL IN MARICO AND IN THE INDUSTRY HLL AND
GODREJ COMES IN THIS CATEGORIES.

2.QUESTION MARKS….???

 It represented by a Product having low relative market share and high market growth rate I.E low
market share in a growing market. It requires large cash due to market growth, but generates less
cash due to low market share.It requires additional investment to increase it’s competitive
advantage.

 E.G NIHAR, SAFFOLA AND IN THE WHOLE INDUSTRY DABUR COMES IN IT.
 These product company given more advertisement. Because these product not more popular in the
market. So company given more cash to these product.

CASH COW

 It represent by a Product having high relative market share and low market growth rate. It is not
attractive in long ran due to less market growth rate.

 E.G SAFFOLA (EDIBLE OIL), SILK N SHINE

 competitor -FORCHUN OIL , DHARA OIL etc.

To meet the investment need of stars on question marks, over heads and growth strategy is suggested

DOG

 It represents a product having low relative market share and low market growth rate. It has very
low competitive position due to high costs, poor quality, poor marketing etc.It also has low
growth potential due to low market growth rate. The preferred strategy is retrenchment.

 EX. MAHA THANDA

 Copititor-navaratn cool
SWOT ANAYSIS

STRENGTH

FINANCE

 Centralized payment

 Decentralized collection

 Low invest

 Source of funds

 Management of funds

 2009-10, the company generated a Turnover of about Rs.26.6 billion (USD 600 Million) In 2008-09
13.6 billion (about 380 million)

 15%profits-over last 5 years

 30%* market share (640 billion)

MARKETING

 widespread distribution network of more than 2.5 Million outlets in India and overseas.

 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.Rural market reach

 one of the largest amongst Indian FMCG company.

 Marico reach approximately 130 Million consumers in about 23 Million households

 No. 2 player in the growing VACNO (Value Added Coconut Oil)

 Strong brand equity

 Wide global presence

 High bargaining power

 Diversification of business by expansion


OPERATIONS

 Plant location as per raw materials availability

 Low cost operations

 Absorb imported technology

 R & D system is so good

 MIS system of operation and control system

 Plant location

 Production system

 Operation and control system

 Strong in inventory control (28 days)

 In house production –no outsourcing-high reliability supplierssuperior quality assurance.

 India and foreign production location-spread benefit.

 Use JIT (just in time) approach for handling of raw material

 Known for their which reliability which comes from efficient operations

Human Resource

 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
WEAKNESS

FINANCE

 Fixed price

 Sales of Rural Area was Slowly Decreasing.

MARKETING

 Not strong within the shampoo segment, having hardly any share

 Not having any antidandruff hair oil whose market potential is worth 25% of the total oil market
in India.

 Low company image

 Low promotion

 Low export level

Operation

 High cost of branded products

HR

 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
OPPORTUNITIES

FINANCE

 India's Rs.460 billion FMCG market

 Increase Income Level With Result in Faster Revenue Growth.

MARKETING

 Need to concentrate within the various others market potential zones like hair shampoo, hair
colorants etc.

 Large Domestic Market

 Growth Marico, 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, brands are non-existent

OPERATION

 Constant innovation

 access international technology

 Huge Distribution Network :including 2 million in 3,160 towns and four million in 627,000
villages.

 Low education level.

 Foreign countries emerging as a leading buyer of the products

 Expand geographical presence

 Less developed infrastructure.

Human Resource

 India is rich in highly trained manpower

 Industry has large and diversified segments that provide wide variety of products

 Population
THREAT

Finance

 Marico’s debt-to-equity ratio for FY 2008 was 1.1, which is the highest among the FMCG
companies. Any further large acquisitions financed by increasing leverage.

 Tax and Regulatory structure

 Economic slowdown resulting in lower consumer spending

 Currency risk: Marico derives approximately 20% of its revenues from international markets.

Marketing

 Marico's key raw materials include copra, kardi oil, sunflower oil, corn oil and rice bran oil,
which are commodity crops whose availability isseasonal.

 Competition from the diverse players present in the market can cause loss of market share.

 Intense competition from global brands in international market

Operation

 High cost of Land

 Environmental regulations

 Infrastructural bottlenecks in terms of power, utility, road transport etc

 Inadequate transport

 Geographical Disadvantages

 Retailers are becoming stronger and are wielding more power over manufacturers

HR

 More job opportunities for the Human Resources around the world

 International labor Laws

 Despite technological advances, beverage sector remain labour-intensive

 Labor problems

 Any change in Government policy

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