PUNE INSTITUTE OF BUSINESS MANAGEMENT

Assignment 1
Marketing Management

SUBMITTED BY:
NIKHIL GUPTA
MBA MARKETIN-1
ROLL NUMBER - MBA18A27
Table of Contents
No table of contents entries found.
Company information
• Found in 1991, Public Limited Company
A leading Indian Group in Consumer Products and Services
• Renowned Brands like Parachute, Saffola, Kaya Skin Clinics
• Sales Turnover: March 2018: Rs 6333 Cr
Net Profit: March 2018 Rs.814 Cr
12 Brands, Turnover Rs 1550 Crores
Marico Limited is one of India's leading consumer products companies operating in the beauty
and wellness space. Empowered with freedom and opportunity, we work to make a difference to
the lives of all our stakeholders - members, associates, consumers, investors and the society at
large. Currently present in 25 countries across emerging markets of Asia and Africa, Marico has
nurtured multiple brands in the categories of hair care, skin care, edible oils, health foods, male
grooming, and fabric care. Marico's India business markets household brands such as Parachute,
Parachute Advanced, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet, Mediker and
Revive among others that add value to the life of 1 in every 3 Indians. The International business
offers unique brands such as Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic,
Isoplus, Code 10, Ingwe, X-Men and Thuan Phat that are localized to fulfil the lifestyle needs of
our international consumers. Charting an annual turnover of INR 63 billion (Financial Year 2017
- 2018) across our portfolio, Marico's sustainable growth story rests on an empowering work
culture that encourages our members to take complete ownership and make a difference to the
entire business ecosystem
Marico Ltd, one of the country’s leading consumer products group, was founded in 1987. It is
operating under a single segment i.e. Consumer products, with the company’s products in Hair
care, Health Foods and Male Grooming sub-segments generating a turnover of `5,733.0 crore in
FY15. Over the past five years, Marico’s top-line and bottom-line have grown at a CAGR of
~16% and ~21%, respectively. Marico’s Indian business markets brands such as Parachute
Advansed, Hair & Care, Nihar, Mediker, Saffola, Revive, Manjal, Setwet, Zatak and Livon
among others. With unique brands like Parachute, Hair Code, Fiancee, Caivil, Hercules,
BlackChic, Code 10, Ingwe, X-Men, L'Ovite and Thuan Phat; Marico has tried to localise the
lifestyle needs of its global customers. While deriving majority of revenue from Indian
operations; Marico grabs a significant share from the markets of Egypt, South Africa, Middle
East, Malaysia, Vietnam and Bangladesh as well. The company’s Indian and global business
accounts for ~78% and 22%, respectively (as in FY15). Marico’s key manufacturing capacities
are located at Kanjikode (Kerala), Perundurai (Tamil Nadu), Pondicherry (Pondicherry),
Dehradun (Uttarakhand), Poanta Sahib and Baddi (Himachal Pradesh). Through its distribution
network of 4 regional offices, 32 carrying & forwarding agents (CFAs) and about 5000
distributors and stockists; Marico sells more than 7.5 crore packs every months through ~3.6 mn
retail outlets. We remain enthused by Marico’s focus on new growth drivers and its effort as an
emerging market MNC. We are also positive over its aggression in the breakfast space with
continued dominance in hair oils and super premium refined edible oils space.
History
Marico Limited is one of India's leading
consumer products companies operating in
the beauty and wellness space. 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
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 cotton seed 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.
The Company made the join venture between a Lever group company and Nissin of Japan
in the year 1998 and its products were distributed through HLL's channels. During the
year 2000 the company made a tie up with the International Association of Trichologists
(IAT) a non-profit organisation based in Australia. In the identical year ML had launched
Parachute Dandruff Solution Coconut Hair Oil in Calcutta the first oil to combine coconut
oil with antidandruff properties in single hair
oil. After a year in 2001 the company had
introduced the Revive Anti-Bacteria starch.
Marico had acquired a controlling equity
interest in Sundari LLC during the period of
2003. High Court of Judicature at Bombay
approves the Scheme of Amalgamation of
Anandita Arnav Trading & Investment Private
Ltd Madhav Nandini Trading & Investment
Private Ltd Rajvi Rishabh Trading &
Investment Private Ltd and Rishabh Harsh
Trading & Investment Private Ltd with the
company on 12th February 2004. In the same
year of 2004 the company had forayed into the
beauty products segment with the launch of Silk-
n-Shine a post-wash hair care product. During
the year 2006 Marico had acquired Hindustan
Lever Limited's Nihar for the consideration of Rs
216 crores. In October of the year 2007 the
company had entered into the South African ethnic
hair care and health care market.Marico acquired
the consumer division of Enaleni Pharmaceuticals
through purchase of 100% shares in Enaleni
Pharmaceuticals Consumer Division (EPCD) an
Enaleni subsidiary. ML had divested of its
processed foods business `Sil' to a Danish business
house Good Food Group in March of the year
2008. The transaction for an undisclosed
consideration envisages a sale of Mario's Sil
business to the Indian subsidiary of
Good Food Group A/S Scandic Food
India (Scandic).In 2009 Marico made
a public offering of equity in
Bangladesh in a first for one its
overseas subsidiaries. In 2010 Marico
began its South East Asia journey
with the launch of Code 10 a male
grooming brand in Malaysia and
Derma Rx skin care solutions in
Singapore. In India Saffola launched
Masala oats as breakfast food during
the year. In 2011 Parachute
Advanced entered the skin-care
category with the launch of
Parachute Advanced Body Lotion
(PABL). During the year Parachute Gold Hair Cream was launched in the Middle East
market targeted to women. On 18 February 2011 Marico announced that it has acquired
85% equity stake in International Consumer Products Corporation (ICP) one of the most
successful Vietnamese FMCG companies for an undisclosed consideration. ICP was
founded in 2001 by Dr. Phan Quoc Cong and his partner. ICP achieved a turnover of a
little over USD 25 million during the calendar year 2010. Its brands X-Men L'Ovite Thuan
Phat and others have a significant presence across personal care beauty cosmetics and
sauces/condiments categories.On 25 March 2011 Marico Group announced the divestment
of its refined sunflower oil brand `Sweekar' to Cargill India Private Limited (Cargill). The
transaction for an undisclosed consideration envisages an assignment of the Sweekar
trademark and copyrights from Marico to Cargill. On 15 February 2012 Marico
announced that it has executed documents to acquire Set Wet Livon Zatak and certain
other personal care brands currently owned by Reckitt Benckiser (RB). RB had acquired
these brands from Paras Pharmaceuticals in a deal completed during April 2011. The
transaction envisages transfer of all key assets including intellectual property rights supply
agreements and third party manufacturing agreements (Paras PC business) for an
undisclosed consideration. These assets are in the process of being transferred to a separate
company in which Marico will acquire 100% shares. The Paras PC business is expected to
achieve a turnover of over Rs 150 crore during FY 2012. Brands in the portfolio are
amongst the top three positions in the hair gels male deodorant and leave-on hair serum
categories. This acquisition gives Marico an opportunity to participate in the rapidly
growing deodorant and male grooming categories in India.The Board of Directors of
Marico at its meeting held on 6 April 2012 considered approved and recommended a
proposal to issue and allot 2.94 crore equity shares at issue price of Rs 170 per share
aggregating Rs 500 crore on preferential basis to Indivest Pte Ltd an affiliate of
Government of Singapore Investment Corporation Pte Ltd (GIC) and Baring India Private
Equity Fund III Listed Investments Limited. The Board of Directors of Marico at its
meeting held on 7 January 2013 approved demerger of the Kaya skin care solutions
business into a separate company which will be named Marico Kaya Enterprises Limited
(MaKE) or any such other name as may be approved by the Registrar of Companies. The
business undertaking of Kaya housed in Marico Limited comprising investment in equity
of Kaya Limited related IPRs employee contracts and cash and bank balances will be
demerged into MaKE through a High Court approved Scheme of Arrangement subject to
approvals by the shareholders and creditors and lenders in Marico Limited. As a
consideration the shareholders of Marico Limited as on the record date shall be issued 1
share of MaKE with a face value of Rs 10 each to be issued at a premium of Rs 200 per
share for every 50 shares of Marico with a face value of Re 1 each.On 25 October 2013
Marcio announced that it has decided to stop production at its manufacturing plant at
Ponda in Goa. This unit was set up in 1997 for manufacture and packaging of pure coconut
oil. Due to input material supply and logistic dynamics that changed over the year the
operations at the plant became commercially unviable. The company has decided to close
the plant in due course for which initial preparatory steps are being taken. With effect
from 21 November 2013 Marico stopped manufacturing activities at its Dehradun Camp
Road plant and initiated for a closure of the plant. This plant was set up in 2003 for
manufacture of cosmetics. On 14 January 2014 credit rating agency CRISIL upgraded its
ratings on the long-term debt instruments and long-term bank facilities of Marico to
'CRISIL AA+/Stable' from 'CRISIL AA/Positive' and reaffirmed its rating on the short-
term debt programme and short-term bank facilities at 'CRISIL A1+'. The rating upgrade
reflects CRISIL's expectation of improvement in Marico's business risk profile over the
medium term driven by increasing revenue diversity and dominant market position in
branded coconut oil value added hair oil and premium refined edible oil segments. The
Board of Directors of Marico at its meeting held on 4 November 2015 recommended the
issue bonus shares in the ratio of 1:1 i.e. one fully paid-up equity share of Re. 1 each for
every one existing fully paid-up equity share of Re. 1 each held in the company.On 27 May
2016 Marico announced that the commercial production for manufacturing of value added
hair oils has successfully commenced at its newly set up plant in Guwahati Assam. Marico's
second plant in Guwahati Assam set up to manufacture value added personal care
products successfully commenced commercial production on 16 March 2017. On 17 March
2017 Marico announced a strategic investment in Zed Lifestyle Private Limited with an
acquisition of 45% equity stake for an undisclosed consideration. The equity stake shall be
acquired over a period of two years through primary infusion and secondary buy-outs. Zed
Lifestyle owns Beardo a fast growing male grooming brand founded by entrepreneurs
Ashutosh Valani and Priyank Shah in June 2016 in Ahmedabad India. Marico views this
investment in Zed Lifestyle as a stepping stone towards its ambition of strengthening its
presence and widening its portfolio in the male grooming market. On 28 July 2017 Marico
South Africa Pty. Limited (MSA) a wholly owned step-down subsidiary of Marico
announced the acquisition of business including related intellectual property rights of
ISOPLUS a leading hair styling brand in South Africa from JM Products SA Pty. Limited
and Ms. Mary L Harris its owner for a consideration of 75 million South African Rand
(about Rs 36 crore) at a revenue multiple of 1.2. The strategic buyout will enable MSA to
become a full spectrum ethnic hair care company in South Africa. The acquisition
comprises purchase of manufacturing facilities working capital and all intellectual
property rights owned by JM Products and Ms. Mary L Harris.On 7 March 2018 Marico
announced that it has exited Bellezimo Professionale Products Private Limited (Bellezimo)
by selling back its entire 45% equity stake in the company to the promoters of Bellezimo
for a total consideration of Rs 1.60 crore. Bellezimo is engaged in marketing skin care
products to cater to Salons channel.
milestones
An uncommon journey traversed in 25 years(1990-
2015)

1971: Harsh Mariwala joins the family business

Presentation Course

1974: He envisions a branded FMCG market for coconut and

refined edible oils in small consumer packs and sets up
distribution network for Parachute

1990: Marico is born

1992-94: Sets up first overseas office in Dubai

- 1996: Marico lists in Indian stock exchanges

2002: Marico ventures into Skin Care

2006-07: Marico sets footprint in Africa

• 2010: South East Asia journey commences with

Malaysia and Singapore
Marico was one of <st1:country–region
w:st="on">India</st1:country–region>’s 10 best
marketers by Business Today–2006.
Marico was among top Eight India Global
challengers according to Standard & Poor’s global
rating of mid–size companies–2006.
2010
Harsh Mariwala was awarded the Ernst & Young
‘Entrepreneur of the Year Award’ 2009 in the
Manufacturing category.
2011
Marico strengthens its presence in SE Asian through
a male grooming, skin care and food portfolio
acquired in Vietnam.
2012
Marico to acquire Paras personal care business from
Reckitt .
Marico – Marico completes acquisition of Halite
Personal Car.
2012
India's Gen next gets styled by Marico

Recent news
FMCG major Marico Ltd on Thursday announced
its foray into the hand sanitizer category, with the
launch of Mediker Sanitizer.
This development is part of the company’s response
to the unprecedented health crisis faced by the country
and to support the government’s relief operations, the
company said in a statement.
FMCG firm Marico Limited has partnered with Swiggy
and Zomato to do home delivery of essential products.
Called ‘Saffola Store’, this initiative enables the
consumer to order essential food items under the Marico
portfolio - Saffola Oils, Saffola Plain Oats, Saffola
Masala Oats and Coco Soul Virgin coconut oil, from the
safety of their homes.

Fast Moving Consumer Goods (FMCG) major Marico

has announced that the company will reward those
individuals or companies who develop innovative health
solutions amid the coronavirus health scare. The
company will give any such person as much as Rs 2.5
crore!
The company had reported a net profit of Rs 183 crore in the corresponding period of fiscal
2017-18. Revenue from operations rose to Rs 1,609 crore for the March quarter, as compared
with Rs 1,503 crore in the same period of 2017-18, Marico said in a regulatory filing.

Just as we are the Marico Innovation Foundation and that's why innovation is very important for
us. I usually say that ‘I in India should not stand for imitation or immigration but it should stand
for Innovation.’ And in the process, we looked at what is innovation in it and what is new and
unique in it, Secondly, it is being done for India that’s why we also looked at affordability and
quality/excellence. It should be scalable and sustainable. 

BRANDS
 our consumers but also add value to their lives.
Name Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover
HUL 506,140.07 39,238.00 6,756.00 8,246.00
Dabur India 81,362.86 8,703.59 1,447.93 7,109.34
Godrej Consumer 70,074.67 9,826.51 1,495.77 10,562.10
Marico 44,463.60 7,315.00 1,043.00 3,371.00
Colgate 37,840.00 2,032.90 435.61 334.81
P and G 33,006.08 - - -
Gillette India 16,244.87 - - -
Emami 10,029.70 2,654.88 308.32 2,033.12
Sheela Foam 6,977.65 2,173.63 194.29 758.33
Jyothy Labs 4,533.19 1,711.17 162.58 1,420.73
Orient Electric 4,222.49 - - -
VIP Industries 3,832.53 1,718.32 111.73 642.30
Bajaj Consumer 2,216.70 825.76 184.77 673.16
JHS Svendgaard 105.97 139.11 -4.86 185.11
Below are the top 7 Marico competitors:
1. ITC Limited
2. L'Oréal
3. Nirma Ltd
4. HUL
5. Colgate-Palmolive
6. Procter and Gamble
7. Dabur India

Analysing the market scenario, the following emerged as the top competitors for Marico
India Ltd:

1. Hindustan Unilever Limited (HUL)

2. Dabur India

3. Godrej Consumer

4. Colgate

Now to get an overview of these companies each company has been described

individually as follows

HUL being the largest FMCG Company in india constitutes 13% of the industry and as
such has a very good market capitalisation with the highest sales turnover and high net
profits. It also has a market portfolio of 20 distinct categories with a major chunk of the
revenue coming from soaps and detergents, personal products and beverages.

Dabur, on the other hand, operates in key consumer product categories as hair care, oral
care, skin care and it has five flagship bands with distinct brand names such as, Dabur for
natural healthcare products and Vatika for premium distribution network covering 2.8
million retail outlets with high penetration in both rural and urban market.

Procter & Gamble Co., also known as P&G, is an American multinational consumer
company headquartered in Ohio. Recently, P&G announced it was streamlining the
company, dropping around 100 brands and concentrating on the remaining 80 brands,
which produced 95 percent of the company's profits.

Colgate is present in segments such as oral care, personal care and other household
products with the oral care revenue contributing largely to its domestic revenues. The
Company dominates in core industry such as toothpaste and toothbrush with market
shares of 50+% and 35+% respectively and a considerable market share in emerging
mouthwash category. Colgate sells its personal products under the Palmolive brand and
dish washing soaps under Axion brand.

Marico India Ltd derives more than 70% of its revenue from edible oils and nearabout
20% of its revenue from hair oils. Its two most famous brands Saffola and Parachute has
acquired many international brand such as Camellia, Aromatic etc. Marico also provides
skin care services through Kaya Clinics in India and UAE which contributes to around 7%
of its sale shares Marico also a strong distribution network because of which it even had
distribution rights of some of the products of its competitor P&G.

CONCLUSION

Company Marico has strong and long term association with the retailer's in rural areas.
Parachute is the most satisfied Brand/product, followed by Saffola, Silk & Shine Hair & Care,
and Sweekar Edible Oil & after Shower Gel.
.