Marico Livon

1st Semester Final Project

Abhirup Mondal
PGDM 4 | UID 2019-3105-0001-0009
Table of Contents
A. SECTOR INFORMATION ..................................................................................................................... 2
INTRODUCTION .................................................................................................................................. 2
1. INDUSTRY SIZE/CONTRIBUTION TO GDP .................................................................................... 3
2. MARKET OVERVIEW .................................................................................................................... 4
3. GROWTH PATTERN ..................................................................................................................... 6
4. REASONS FOR GROWTH ............................................................................................................. 7
5. PORTER’S 5 FORCES MODEL ....................................................................................................... 9
B. COMPANY INFORMATION ............................................................................................................... 11
1. COMPANY SNAPSHOT............................................................................................................... 11
2. PRODUCT PORTFOLIO ............................................................................................................... 14
3. SWOT ANALYSIS OF THE COMPANY ......................................................................................... 15
4. TARGET MARKET ....................................................................................................................... 16
5. COMPETITORS ANALYSIS .......................................................................................................... 16
6. NEWS (LAST 6/12 MONTH) ..................................................................................................... 17
C. MARKETING ..................................................................................................................................... 18
1. SWOT ANALYSIS OF THE PRODUCT .......................................................................................... 18
2. Marketing Mix for Marico Livon ............................................................................................... 18
3. STP of Marico Livon .................................................................................................................. 21
4. BCG Matrix ............................................................................................................................... 22
5. PLC of Marico Livon .............................................................................................................. 23
D. Finance ............................................................................................................................................ 24
1. GROSS FROFIT MARGIN ............................................................................................................... 24
E. Human Resource Management ....................................................................................................... 26
1. ORGANISATION STRUCTURE ........................................................................................................ 26
2. Analysis of JDs and Job Specifications ......................................................................................... 27
4. Organization culture .................................................................................................................... 28
5. CONCLUSION ................................................................................................................................ 29
6. BIBLIOGRAPHY ............................................................................................................................. 29

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A. SECTOR INFORMATION
INTRODUCTION
FMCG Sector has been divided into: -

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 1. INDUSTRY SIZE/CONTRIBUTION TO GDP

 Fast moving consumer

good(FMCG) sector is
the fourth largest
sector in the Indian
economy with
Household and
Personal Care
contributing for fifty
percent of FMCG sales.

 Growing awareness,
change in lifestyle, and
easy access has been
the key reason for the
growth in this sector.

 The urban area (accounts for a revenue share of around fifty five percent) is the largest
contributor to the overall revenue generated by the FMCG sector in India. In the last
few years, the FMCG market has grown at a faster pace in rural areas compared with
urban areas. Semi-urban and rural areas are growing at a fast pace and FMCG products
counts for 50 percent of total rural spending.

Contribution

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 According to Nielsen RMS, "Rural India Contributes to 37 percent of overall FMCG
spends and has historically been growing around 3 to 5 percentage points faster than
urban on account of increasing affordability, availability, and demand. However,the
rural growth is slowing down double the rate of urban in recent quarters."

2. MARKET OVERVIEW
 The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840
billion in 2017, with modern trade expected to grow at 20 - 25 % p.a., which is likely to
boost sales of all the FMCG companies.

 Revenues of the FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and
are estimated to reach US$ 103.7 billion in 2020.
 The sector witnessed a growth of 16.5 percent in value terms between July-September
2018; supported by moderate inflation, an increase in private consumption and rural
income.

MARKET BREAKUP-BY-
REVENUE
2% 5%
4% FOOD PRODUCTS
4%
PERSONAL CARE

8% FABRIC CARE
43%
HAIR CARE
12%
HOUSEHOLD
OTC PRODUCTS
22%
BABY CARE

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 Segment Wise Breakup of Revenues

Market Forecast
 The number of online users
in India is likely to cross 850
million by 2025.

 In 2018, the e-commerce

segment contribution is
projected to be around 1.3
percent of the overall
branded packaged FMCG
sales.

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 3. GROWTH PATTERN
Trends in FMCG revenues over the years (US$ billion)

 Revenues of the FMCG sector reached Rs 3.4 lakh crore (US$ 52.8 billion) in FY18 and
are estimated to reach US$ 103.7 billion in 2020F. The sector is projected to grow by
11-12 percent in 2019.
 The sector saw a growth of 16.5 percent in value terms between July-September 2019;
supported by an increase in private consumption, moderate inflation and rural income.
It is estimated to grow at 12- 13 percent between September-December 2019.
 The Union Budget 2019-20 initiatives to increase consumer spending among the
middle class are expected to boost consumer confidence and improve demand
generation for branded consumer products.
 FMCG sector to get support for growth from Inland Waterways Authority of India
(IWAI) multi-modal transportation project of freight village at Varanasi which will bring
together warehouse operators , logistics service providers and retailers, an investment
of Rs 1.7 billion (US$ 25.35 million).
 Nielsen India estimates the FMCG industry growth of 11-12 percent in 2019 against
13.8 percent in 2018.
Strategies adopted to succeed
Promotions and offers
 FMCG companies are trying to influence consumers with innovative deals.
 Firms like ITC offer combo deals to consumers. For example, in the case of soaps and
cosmetics; 4 soap cases are offered at the price of 3, selling the range of deodorants
for men and women at a discounted price.

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 Research online Purchase offline
 The internet allows consumers to make their own research on the kind of products or
commodities they want to purchase. 1 out of every 3 FMCG shoppers goes online first
and then to the store.
New product launches
 Considering the changing tastes of the Indian consumer, FMCG companies are bringing
new products in the market to gain market share.
 In 2019, ITC has introduced more than 60 new product launches in the FMCG segment
in India.
 In February 2018, industry major Britannia announced that it will introduce 50 new
products by the end of 2019-20.
Analytics
 Hindustan Unilever Ltd (HUL) implemented a transformational programme called
Connected 4 Growth (C4G) to help drive business growth by increased speed to
market, faster decision making, localized and swifter innovation.
 Patanjali uses Oracle and SAP for Enterprise Resource Planning (ERP), they will further
standardize the application on SAP. It plans to use machine learning for quality control
and product enhancement. They are also in talks with Net App for big data solutions.

4. REASONS FOR GROWTH

GROWTH DRIVERS FOR INDIA’S FMCG SECTOR
o Shift to organized market
 Organized sector growth is expected to grow as the share of the unorganized
market in the FMCG sector fall with an increased level of brand consciousness.
 Growth in modern retail will augment the growth of the organized FMCG sector.
 Post GST and demonetization, modern trade share grew to 10 percent of the
overall FMCG revenue, as of August 2018.

o Increase in Penetration
 Low penetration levels of branded products in categories like instant foods
indicating scope for volume growth
 Investors are attracted towards this sector as the FMCG products have needed
throughout the year.
 Increase in food parks to 13, food processing capacity to 1.41million and food labs
to 42.

o Easy access
 Online grocery stores and online retail stores like Amazon, Grofers, Flipkart are
making the FMCG products more readily available.
 The availability of products has become very easy because of the internet and
different channels of sales have made the accessibility of the desired product to
customers more convenient at the required time and place.

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 o Policy and regulatory framework

 The Government of India has provided a full tax rebate for an income up to Rs 5
lakh (US$ 6,930), which is expected to boost disposable income in the hands of the
common people.

 FSB is expected to reduce the prices of food grains for Below Poverty Line (BPL)
households, which will allow them to spend resources on other goods and
services, including FMCG products.

 The rate of GST on services lies between 0-18 percent and on goods lies between
0-28 percent.

 Warehousing cost for FMCG companies is estimated to fall by 25-30 percent

backed by the implementation of the GST. The number of warehouses will
decrease from 45-50 to 25-30 and the size of warehouses will become larger.

 The government approved 51 percent FDI in multi-brand retail in 2006, which will
boost the organized retail market in the country. It also allowed 100 percent FDI in
the cash and carry segment and in single-brand retail.

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 5. PORTER’S 5 FORCES MODEL

The threat of new entrants

The entry of new players in an industry raises the level of competition, thereby reducing its
attractiveness. High entry barriers exist in some industries whereas other industries are very
easy to enter (e.g. estate agency, restaurants). Key barriers to entry include:
 Economies of scale
 Customer switching costs
 Access to industry distribution channels
 The Indian FMCG Industry is characterized by modest entry and exit barriers.

Bargaining Power of Suppliers

Prices are generally regulated by international markets, making most of the FMCG
companies a price taker. Due to the long-term relationships with suppliers etc., the FMCG
companies get the power to negotiate better rates at the times of high input cost inflation.

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 Bargaining Power of Consumers

High brand loyalty for a product stops customer’s to shift to a new one. But aggressive
marketing strategies and low switching cost under intense competition between the FMCG
companies, excite consumers to switch between products, thereby driving value for money
deals for consumers. However, on account of a large number of buyers and limited
suppliers, the bargaining power of the consumer is low in Indian FMCG. Intensity of Rivalry

Competitors

Competitiveness among the Indian FMCG players is high. With more FMCG giants entering
the country, the industry has become highly fractured. Spending on advertisements
continues to grow and marketing budgets, as well as strategies, are becoming more
aggressive. The private labels offered by retailers at a discount to big brands also act as a
competition to weak and undifferentiated brands.

Threat of Substitutes

The presence of substitute products in FMCG lowers profitability and industry attractiveness
because they limit price levels. The threat of substitute products depends on:

o Buyers’ willingness to substitute

o The relative price and performance of substitutes

o The costs of switching to substitutes

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B. COMPANY INFORMATION
1. COMPANY SNAPSHOT
 Marico is one of the well-known FMCG companies in India that have successfully
created brands in the largely commoditized business of hair oils and edible oils.
 Marico is a leading Indian company with business interests in manufacturing and
retailing personal consumer products as well as providing services in the beauty
space.
HISTORY
Marico Limited (ML), a leading Fast-Moving Consumer Goods (FMCG) player was
incorporated on 13th October 1988 under the name of Marico Foods Limited. The name
of the company was changed from Marico Foods Limited to Marico Industries Limited
with effect from 31st October of the year 1989. During the same year 1989, in
December, the company had entered into an agreement with M/s. Rasoi Industries
Limited for purchase of its unit located at M.I.D.C. Industrial Estate, Jalgaon. After a year,
in 1990, ML made a Registered Users Agreement with Bombay Oil Industries Ltd (BOIL)
for the use of the brands' Parachute and Saffola for an initial period of 3 years
commenced from 1st April of the same year. The Company established a new plant at
Kanjikode, Palghat District of Kerala to manufacture Parachute Coconut Oil with a
capacity of 24000 tonnes of coconut oil per annum, began commercial operation in May
of the year 1993. During the year 1995, ML had acquired the Brand SIL' from KFL for the
consideration of Rs 3 crores. Marico had extended its Sweekar oil brand during the year
1997, by the way of two new refined oils entry namely Sweekar cottonseed oil and
Sweekar mustard oil. In the identical year of 1997, the company had set up a factory
near Jalgaon to process the cotton seeds and another factory near Jaipur for the mustard
oil.
FOUNDER
Mr. Harsh Mariwala, Chairman &
Managing Director, Marico Ltd. &
Founder Member, Marico
Innovation Foundation, founded
the company in 1990 and
transformed a traditional
commodity driven business into a
leading Consumer Products &
Services Company, in the Beauty
and Wellness space. Mr. Harsh
Mariwala’s entrepreneurial drive
and passion for Innovation
enthused him to establish the
Marico Innovation Foundation in
2003. Under the stewardship of an
eminent Board, the Foundation acts as a catalyst to fuel innovation in India. In addition,
Mr. Harsh Mariwala also mentors a group of young and upcoming entrepreneurs, in
association with TiE – The Indus Entrepreneurs - a part of TiE’s Mentor Programme. In
March 2011, Mr. Harsh Mariwala was elected as the President of the Federation of
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 Indian Chambers of Commerce and Industry (FICCI). He is also on the Board of Cadbury
India Limited. In the past, he has held several positions as the FMCG Committee
Chairman of FICCI and CII. Mr. 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, Membership and Chapter Chair.

GOALS

 RESPONSIBLE RESOURCE CONSUMPTION

Reduce Energy Intensity (Fuel + Electricity) Achieve Water Stewardship by offsetting
[GJ / KL of Product Manufactured] water footprint in our operations
Target
50% 100%
Achievement
2.5x
25%
Harvest capacity created

 CLIMATE CHANGE

Reduce GHG Emission Intensity

(Scope I + Scope II) [tCO2e / KL of Product
Manufactured
Target
75%
Achievement
56%

 SUSTAINABLE SUPPLY CHAIN

Certify critical material and service providers for Level 1

criteria of Marico Responsible Sourcing (MARS)
Guideline
Target
20%
Achievement
5%
*Critical associates qualified for MARS Level 1
certification

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  PRODUCT RESPONSIBILITY

Ensure adherence to all consumer health and safety

standards and compliance
Target
100%
Achievement
We continue to adhere to all regulatory compliance and
standards

 COMMUNITY DEVELOPMENT

Increase number of farmers beneficiaries’ year-on-year

Target
5%
Achievement
9,300+
*Farmers enrolled under the 'Parachute Kalpavriksha'
program in FY19 (cumulative enrolment till date is
11,800+)
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 2. PRODUCT PORTFOLIO
Parachute

Nihar Naturals
Coconut Oil
Nihar Naturals Uttam

Active

Tasty
Super Premium
Refined Edible Oil Gold

Total

Parachute Advansed
Product Line

Value-Added Hair Nihar Naturals

Oil
Hair & Care

Livon

True Roots Botanical

Hair Tonic
Premium Hair Parachute Advansed
Nourishment Coconut Creme Oil
Range
Hair & Care Silk n
Shine Leave-in Hair
Conditioner

Saffola

Saffola FITTIFY
Healthy Foods Healthy-Gourmet
Range

Coco Soul

Set Wet
Male Grooming &
Styling Parachute Advansed
Men Aftershower Hair
Cream
Parachute Advansed
Skin Care Body Lotion
Kaya Youth O2 Oxy-
Infusion Range

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 3. SWOT ANALYSIS OF THE COMPANY

The company has an excellent distribution network and product

availability. The portfolio of Marico’s products has brands consisting of
Edible Oil, Hair Oils, Skin Care, Fabric Care, etc. Popular brands, good
brand visibility and excellent advertising of products have led to strong
brand loyalty. It has great experience management and good research
STRENGTHS and development. Marico is spread in more than 25 countries across Asia
and the African continent. Marico reaches over 2.5 million outlets and
around 130 million customers. In the last 18 months, the company has
acquired 8 other companies in India and abroad as well. It has a strong
distribution network cause of which it has acquired distribution rights
from its competitors like P&G.

The market share of Marico limited is limited due to the presence of

other strong FMCG brands. Marico’s products have stiff competition from
other big domestic players and international brands. The company ranks
3rd in its health care sector, they are having a 23% market share whereas
its competitor Agro tech foods are having 34% of the market share in the
WEAKNESS
organized sector. There is a wide difference for the company to bridge
the gap in terms of market share. The company’s current ratio i.e 2.72
indicates that the company dint allocates its funds properly. The constant
decrease in the company’s earnings per share ratios indicates that the
company is not paying dividends to the stockholders properly.

Marico can tap rural markets and in urban areas to increase its
penetration and sales. It can merge with international and domestic
OPPORTUNITIES
companies to strengthen the brand and can also acquire big brands
under their company.

There has been Intense and increasing competition amongst other FMCG
companies. Due to FDI in retail thereby, there has been an increase in the
THREATS allowance of international brands. Competition and imitation of the
products from unbranded and local brands. Improper payment of the
dividends to the shareholders might result in a threat to the company.

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 4. TARGET MARKET

Consumer Products segment include coconut oil, hair care, anti-lice

SEGMENT treatment, refined edible oil, fabric care, processed foods as well as
its distribution alliance with Indo Nissin Foods

TARGET GROUP Its primary focus group is women of any age group.

Marico is committed to and threats improving the quality of

POSITIONING
people’s lives through branded products and services.

5. COMPETITORS ANALYSIS

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 6. NEWS (LAST 6/12 MONTH)

 4.05 pm | 06 May 2019 |

Marico Q4 net profit jumped 18% to Rs 217cr

 2.10 pm | 10 Jul 2019 |

Marico Q1 PAT went up 13.2% YoY to Rs. 294.5 cr
Net Sales are expected to raise by 8.9 percent Y-o-Y (up 37.2 percent Q-o-Q) to Rs. 2,207 cr

 2.10 pm | 10 Jul 2019 |

Share market update: FMCG shares trade higher; Britannia jumps 6%
Shares of Britannia Industries (up 5.81 percent), Marico NSE 0.38 % (up 2.33 percent),
Godrej Consumer Products NSE 2.78 % (up 1.99 percent) and United Spirits (up 1.33
percent) were trading in the green.
ITC (up 1.18 per cent), Emami (up 1.02 per cent), Godrej Industries (up 0.94 per cent) and
Dabur India (up 0.85 per cent) too were trading higher.

 3.58 pm | 10 Oct 2019 |

Marico Q2 PAT went up 15.8% YoY to Rs. 252.7 cr
Net Sales are expected to raise by 7.2 percent Y-o-Y (down 9.1 percent Q-o-Q) to Rs.
1,968.7 crore,

 12.37 pm | 11 Oct 2019 |

Marico Q2 PAT seen up 17.2% YoY to Rs. 251.1 cr
Net Sales are expected to increase by 7.2 percent Y-o-Y (down 9.1 percent Q-o-Q) to Rs.
1,969.8 crore

 3.54 pm | 25 Oct 2019 |

Marico Q2 profit jumps 17% YoY to Rs 253cr
The board declared an interim dividend of 275 percent at Rs 2.75 per equity share

 7.29 am | 29 Oct 2019 |

Marico has a poor Q2, but high margins give it the flexibility to respond to the challenge

 10.23 am | 29 Oct 2019 |

Marico plunges 7% after Q2 results; CLSA downgrades the stock, cut target
Revenue fell marginally to Rs 1,829 crore against Rs 1,837 crore

 10.46 am | 30 Oct 2019 |

Share market update: FMCG shares mixed; ITC gains 2%
Shares of ITC (up 1.88 percent), Tata Global Beverages NSE -0.20 % (up 1.34 percent),
Marico NSE 0.38 % (up 0.46 percent) and Godrej Consumer Products (up 0.20 percent)
were the top gainers in the index.

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C. MARKETING
1. SWOT ANALYSIS OF THE PRODUCT

 MARICO uses strong advertising strategy to

promote livon.
STRENGTHS  Rising pollution and stress leading to hair loss.
 The product comes for both genders which expand
its consumer base.

 The product has very low penetration in the rural

markets.
WEAKNESS  The product is priced at a higher range.
 Controversial advertising may lead to legal issues for
the product.
 India has the highest number of young populations.
 The product is sold on various online sales portals.
OPPORTUNITIES
 The company has come with gender-specific
products for both the genders.
 From companies selling herbal products like
PATANJALI.
THREATS
 The company has to face competition from other
foreign brands.

2. Marketing Mix for Marico Livon

Product
Livon Hair Gain Tonic Livon Serum

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 Description
Livon Hair Gain Tonic
A product born out of advanced, 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 energizers, a breakthrough
formulation that comprises hair re-growth molecules. Livon Hair Gain Tonic has a
three-way action on affected hair follicles:
 It penetrates to the root of the hair follicle and clears up the debris around it.
 It restores the proper circulation of blood and nutrients to the hair follicle.
 It also prevents shrinking of the hair follicle and helps it grow in a healthy
cycle.

Livon Serum
Livon Shake & Spray Serum
Livon Shake & Spray Serum is a one-of-its-kind product that gives salon finish hair on-
the-go! We know you spend time doing up your hair every morning but by the time
you reach office or college, aren't you shocked at how frizzy and messy your hair
looks? This is why we made Livon Shake & Spray Serum! A spray which can easily be
carried in the bag, it has Vitamin B fortified water & serum glossers that give you fab
hair whenever, wherever. All you need to do is just shake & spray on dry hair to cut
away the frizz and get instant smoothness and gloss!
Livon Colour Protect Serum
Livon Colour Protect Hair Serum with UV Protect & Moroccan Argan Oil is designed
especially for your coloured hair. Don’t you just love our colour but hate how fast it
fades? In just a few washes and thanks to the sun, colour fades quickly leaving your
hair looking oh-so -dull! Flaming red ends up becoming a dull brown or gold starts
looking like faded yellow in just a few weeks. Introducing Livon Colour Protect
Serum. Use Livon Colour Protect Serum every time you wash your hair and right
before you step out in the sun. What do you get? Longer lasting, a salon-like colour
that looks as vibrant as it did on Day 1!
Livon Serum for Dry & Unruly Hair
Livon Serum for Dry & Unruly Hair has been specially crafted for dry, rough &
excessively frizzy hair which is unmanageable & so hard to control! Enriched with rich
Moroccan Argan Oil extracts, Livon Serum for Dry & Unruly Hair moisturizes hair
intensely but without any limpness, cutting away all the frizz, bringing back volume
control and giving intense smoothness that lasts for 24 hours! Just apply a few drops
on towel-dried hair and feel your hair smoothen even as it dries. Livon Serum for Dry
& Unruly Hair - get intense smoothness that lasts an entire day.

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 Price
Livon Hair Gain Tonic Livon Serum
Amazon
 150ML- 699 464/-  Livon Hair Serum 100ML- 250 133/-
 150ML- 699/-  Livon Serum for Dry & Unruly Hair
(Buy 1 Get 1 free) 100ML- 188/-
 Livon Colour Protect Hair Serum
59ML- 250 138/-
 Livon Shake & Spray Hair Serum
50ML- 150 128/-
Flipkart
 150ML- 699 464/-  Livon Hair Serum 100ML- 250 200/-
 150ML- 2897 1738/-  Livon Serum for Dry & Unruly Hair
(Pack of 2) with EImask Derma Roller 50ML- 140/-
 Livon Colour Protect Hair Serum
59ML- 250 138/-
 Livon Shake & Spray Hair Serum
50ML- 150/-

Nearest Store
 150ML- 699/-  Livon Hair Serum 100ML- 250/-
 Livon Serum for Dry & Unruly Hair
100ML- 188/-
 Livon Colour Protect Hair Serum
59ML- 250/-
 Livon Shake & Spray Hair Serum
50ML- 150/-

Place
Distributed through various channels:
• E-commerce websites
• Kirana stores
• Pharmacies
• Malls
• Cosmetic stores

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 Promotion
Promoted through various channels:
 Website for both the products
-http://www.livonilovemyhair.com/#overview
-https://marico.com/india/brands/livon/livon-silky-potion
 YouTube channel
-https://www.youtube.com/channel/UCpXdmTQTZOsq0ohVSyIzL4w
 TV Shows
-MTV India’s Next Top Model
 Influencer Marketing
-Instagram
-Facebook
-Twitter
 Magazine advertisements
 Celebrity endorsements
-Brand Ambassador- Kangna Ranaut
 Catchy Taglines: -
o PrettyGirlSwag
o SalonNahiLivon

3. STP of Marico Livon

INDIA AGE – 30-45 VALUES- NEED BRAND LOYALTY-

Behavioural
Geographic

Demographic

Psychographic

TO BE VERY HIGH
BANGLADESH INCOME – HIGH
PRESENTABLE USAGE RATES-
SOUTH AFRICA EDUCATION- DAILY USE
MEDIUM ATTITUDE-
MIDDLE EAST MODERN OCCASION-
SOUTH EAST GENDER- MALE EVENTS
AND FEMALE INTEREST- TO
ASIA LOOK READINESS TO
FATIONABLE BUY- ALWAYS IN
STOCK

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 4. BCG Matrix
Market Share
Star Question Mark
Market Growth

Cash Cow Dog

LAST 3 YEARS SALES

Sales
5971

5181.32

4868.88

MAR'19 MAR'18 MAR'17

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5. PLC of Marico Livon

 Livon is currently in its maturity stage. Its sales has been constant for the last 3 years
and is growing every year on year.

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D. Finance
1. GROSS FROFIT MARGIN
(*ALL THE AMOUNTS ARE IN CRORE)
RATIO ANALYSIS
1. Liquid Ratios
a. Current Ratio = Current Assets/ Current Liabilities
= 3200/1686
= 1.897
= 1.897:1

b. Quick Ratios = Liquid Assets/ Current Liabilities

= 3183/1686
= 1.887
= 1.887:1
c. Absolute Liquid Ratios = Absolute Liquid Assets/ Current Liabilities
= 2666/1686
= 1.5812
= 1.5812:1
2. Solvency Ratios
a. Long term Debt to Equity Ratio = Long Term Debt/ Total Equity
=46/ 3010
=0.051

b. Total Debt to Equity Ratio= Total Debt/ Total Equity

=1732/ 3010
=0.5754

c. Debt Ratio= Total Debt/ Total Assets

=1732/4742
=0.365

d. Financial Leverage= Total Assets/ Total Equity

= 4742/3010
= 1.575

e. Proprietary Ratio= Total Equity/ Total Assets

= 3010/4742
= 0.634 :1
3. Turnover Ratios
a. Capital employed turnover Ratio = Sales / Capital Employed
= 7334/1686
= 4.349 times
b. Total Asset Turnover Ratio = Net Sales / Total Assets of the Company
= 7437/4742
= 1.568 times
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 c. *Debtors Turnover Ratio = Net Credit Sales / Average account Receivable
= 517/428.5
= 1.2 times

d. Fixed Asset Turnover Ratio = Sales or Net Sales / Fixed Assets

= 7437/1542
= 4.82 times

e. Inventory Turnover Ratio= Sales / Closing Inventory

= 7334/1411
= 5.19 times
4. Profitability Ratios
a. Gross Margin = Gross Profit/Net Sales * 100
= 1264/ 7437 * 100
= 16.99%
b. *Operating Margin = Operating Profit / Net Sales * 100
=3324 /7437 *100
= 44.69%
c. *Return on Assets = Net Income / Assets * 100
=7437 /4742 * 100
= 156.83%

d. *Return on Equity= Net Income/ Shareholder’s Investment *100

= 7437/3010 *100
=247 %
5. *Direct Costs to Company
= Cost of Goods Sold + Employee Benefit Exp.
= ₹4017 + 466
= ₹4483

6. *Indirect Cost to Company

= Indirect Employee Expenses + Selling & Distribution Expenses + General &
Administration Expenses + Other Miscellaneous Expenses
= ₹ 0 + 1570
= ₹1570

7. Fixed Assets added during the year

= Closing Balance of Fixed Assets – Opening Balance of Fixed Assets
= ₹1542 – 1287
= ₹255
8. Working Capital required during the year
Working Capital = Current Assets – Current Liabilities
=3200 - 1686
= ₹1514
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E. Human Resource Management
1. ORGANISATION STRUCTURE

CEO

VP
VP SALES
OPERATIONS

FINANCE OPERATIONS MARKETING SALES

MANAGER MANAGER MANAGER MANAGER

FINANCE FINANCE MARKETING MARKETING SALES SALES

EXECUTIVE EXECUTIVE
EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE ECECUTIVE

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2. Analysis of JDs and Job Specifications
Marico BRAND COMMUNICATION
Work closely with the Category Head in the process of building a Brand Strategy and creating Advertisements,
INDUSTRIES Modes, Contents etc.
needs a Executing projects of Marketing Properties, Promotions, Events etc.

“BRAND
MANAGER”
BUSINESS PLANNING
whose duties Work closely with the Category Head in the process defining the Brand Positioning, The Brand and creating the
and communication platform
responsibilities
would be :
BRAND COMMERCIALS
Advertising and Sales Promotions spends, supervising the spending at product and sub product level with approval
from Category and Marketing Head.
Largely responsible for dispensing of funds.
Lead the process by understanding competition and Identifying price increasing or decreasing opportunities.

Skills needed to do that particular job are:

•Should have a work experience in the specified domain not less than 3 years.
•Should have good analytical skills.
•Should be a team leader.
•Should be able to forecast the actions and decisions

WORK LOCATION: BANGALORE

EXPERIENCE NEEDED: 3-5 YEARS

EDUCATIONAL QUALIFICATION: POST GRADUATE (MBA)

FUNCTION: MARKETING

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3. Training needs of the company

Training Program Design &

Development
Professional Development
& Soft Skills Training

Technical Training

4. Organization culture

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5. CONCLUSION
Marico is one of the leading brands of the country and it has maintained this position for a very long
period of time. To maintain such efficiency, a company needs strict norms and the focus to achieve
growth despite the various challenges it faces.
Marico faced various challenges in its rise to the top of the market and to position itself as the
leader in the market. The challenges comprised of rising commodity inflation, cost challenges and
wastages in the supply chain. The company now has a strategy and it focuses on the 3 thrust areas
so as to drive growth and they are revenue management, cost management and innovation. Marico
has also maintained adequate stock of the seasonal products and has provided them at adequate
intervals so that there is adequate supply.

6. BIBLIOGRAPHY
1. https://www.ibef.org/archives/industry/Fmcg-reports/indian-Fmcg-industry-analysis-
february-2019
2. https://www.ibef.org/industry/fmcg.aspx
3. https://www.ibef.org/archives/industry/Fmcg-reports
4. https://www.ibef.org/download/FMCG-July-2019.pdf
5. https://www.ibef.org/industry/indian-consumer-market/showcase/marico-ltd
6. https://marico.com/india/investors/documentation/annual-reports
7. https://marico.com/investorspdf/Marico_Limited_-_Investor_Presentation_-
_February_2019.pdf
8. https://marico.com/india/brands/livon
9. https://marico.com/india/brands/livon/livon-silky-potion
10. https://marico.com/india/brands/livon/livon-hair-gain
11. https://www.glassdoor.co.in/Reviews/Marico-Limited-Reviews-E226953.htm
12. https://www.glassdoor.co.in/Benefits/Marico-Limited-India-Benefits-
EI_IE226953.0,14_IL.15,20_IN115.htm
13. https://economictimes.indiatimes.com/marico-creates-winners-who-can-mentor-future-
leaders/articleshow/44214754.cms?from=mdr
14. https://www.shine.com/job-search/training-development-jobs-in-marico
15. https://indiacsr.in/marico-sowing-modern-practices-in-coconut-breeders-under-
kalpavriksha-programme/

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