Marico is an Indian consumer goods company founded in 1990 that produces coconut oil, edible oils, hair oils, and other products. Some key points: - It started as a small trading business in 1862 and incorporated as Bombay Oil Industries in 1948, later splitting marketing and manufacturing into separate companies. - Major brands include Parachute coconut oil, Saffola edible oil, and Mediker anti-lice treatment. - A turning point was acquiring Mediker brand from P&G in 1999 and implementing pricing strategies that drove growth. - Future plans include expanding distribution, launching new products, and potentially entering hair wash segment with Parachute Shampoo.

1. m a r i c o
uncommon sense
By: Yash SuranaBy: Yash Surana

2. C O N T E N T SC O N T E N T S
 HISTORYHISTORY
 MANAGEMENTMANAGEMENT
 PRODUCTSPRODUCTS
 TURNING POINT IN THE HISTORY OFTURNING POINT IN THE HISTORY OF
THE COMPANYTHE COMPANY
 FINANCIAL PERFORMANCEFINANCIAL PERFORMANCE
 COMPETITORSCOMPETITORS
 FUTUREFUTURE

3. H I S T O R YH I S T O R Y
 1862 - Kanji Morarji, started a small trading business in Mumbai
 Bombay Oil Industries Ltd (BOIL) in 1948
 Manufacturing Facilities - coconut oil extraction plant, vegetable oil
refinery and a chemical plant
 1990 - marketing division was hived off into a separate company in Marico
Industries Ltd (MIL)
 Marketing - coconut oil, edible oil, instant starch, fruit jams etc including
the brands Saffola and Parachute
 Marico's brands and their extensions have occupied leadership positions
with significant market shares in all categories- Coconut Oil, Hair Oils,
Anti-lice Treatment, Premium Refined Edible Oils, Fabric Care etc.

4.  the philosophy that will build the culture to drive business growth
 an organization - which is flat with only five levels of reporting between the
Managing Director and an operator on the shop floor
 Marico's structure is dynamic and constantly evolving
 Business ModelBusiness Model
 heightened sensitivity to consumer needsheightened sensitivity to consumer needs
 setting new standards in the delivery and quality of products and servicessetting new standards in the delivery and quality of products and services
through processes of continuous learning and improvementthrough processes of continuous learning and improvement
 model ensures that Marico is present in unique / ethnic Indian Product ormodel ensures that Marico is present in unique / ethnic Indian Product or
Services categories where typical MNCs would not be strongServices categories where typical MNCs would not be strong
M A N A G E M E N T

5. Mr. Harsh Mariwala Chairman & Managing Director (Promoter)
Mr. Rajeev Bakshi Non-Executive and Independent
Mr. Atul Choksey Non-Executive and Independent
Mr. Nikhil Khattau Non-Executive and Independent
Mr. Jacob Kurian Non-Executive and Independent
Mr. Rajen Mariwala Non–Executive (Promoter)
Ms. Hema Ravichandar Non-Executive and Independent
Mr. Bipin Shah Non-Executive and Independent
M A N A G E M E N T

6.  safe and effective procedures - enhance
the look and feel of the skin
 scientific, unisex dermatological
procedures
 US FDA approved technology
P R O D U C T S

7.  line of luxury Ayurvedic skin care products
 super-premium outlets, specialty stores, Spa
channels, internet
 winner of Fashion Group International Award in
2001
P R O D U C T S

8.  premium edible grade oil
 positioning – purity
 loosely available commodity to a path-breaking
brand
 communication has evolved over time to appeal to
different consumer sets
P R O D U C T S

9.  concern today is the occurrence of heart
disease with every fourth Indian being under
the threat
 fortified with natural vitamin E - preserves the
stability of oil, increases its shelf-life, retard
aging and prevents heart disease
P R O D U C T S

10.  a three-decade-old brand - acquired from
Procter & Gamble, in July 1999, in the
shampoo format
 treating lice
 primary target - mothers of school-going
children (urban/rural)
P R O D U C T S

11.  post wash hair conditioner
 primary target - female between 18-34 yrs,
SEC AB
 prevalent in the urban sections, single use, single use
sachet pack - rural marketsachet pack - rural market
P R O D U C T S

12.  instant Cold Water Starchinstant Cold Water Starch
 the ONLY product of its kindthe ONLY product of its kind
 created a market for Instant starch, whencreated a market for Instant starch, when
there was nonethere was none
P R O D U C T S

13.  pleasantly perfumed non-sticky hair oilpleasantly perfumed non-sticky hair oil
 positioning - the lightest perfumed hair oil offeringpositioning - the lightest perfumed hair oil offering
both “Style & Nourishment”both “Style & Nourishment”
 enriched with “Herbal Proteins” which areenriched with “Herbal Proteins” which are
extracted from Neem & Tulsi, a process patentedextracted from Neem & Tulsi, a process patented
by Maricoby Marico
P R O D U C T S

14.  Refined Sunflower OilRefined Sunflower Oil
 positioning - as a 88% saturated, fat-freepositioning - as a 88% saturated, fat-free
oil with Low Absorb propertiesoil with Low Absorb properties
 primary target has been housewives (ageprimary target has been housewives (age
25 +)25 +)
P R O D U C T S

15.  wide range of great tasting products suchwide range of great tasting products such
as Jams, Sauces, Baked Beans, Chineseas Jams, Sauces, Baked Beans, Chinese
Vinegar, Sweet Corn Soup, MayonnaiseVinegar, Sweet Corn Soup, Mayonnaise
 No.2 brand in the Jams categoryNo.2 brand in the Jams category
P R O D U C T S

16.  premium quality edible grade coconut oilpremium quality edible grade coconut oil
 brand is one of Marico's recent acquisitions,brand is one of Marico's recent acquisitions,
having been bought in November 1999having been bought in November 1999
 consumer franchise spans women of all ageconsumer franchise spans women of all age
groupsgroups
 strong rural presencestrong rural presence
P R O D U C T S

17.  launched on the platform of “Goodnesslaunched on the platform of “Goodness
of Badam with Amla”of Badam with Amla”
 positioning – value for moneypositioning – value for money
P R O D U C T S

18.  making over Marico from a closely held familymaking over Marico from a closely held family
managed firm to a highly professionallymanaged firm to a highly professionally
managed organization – Harsh Mariwalamanaged organization – Harsh Mariwala
 Mediker, a brand acquired from Procter &Mediker, a brand acquired from Procter &
Gamble for Rs. 10 croreGamble for Rs. 10 crore
 scale economies and a well-thought out pricingscale economies and a well-thought out pricing
strategy in 2000 - 01strategy in 2000 - 01
T U R N I N G P O I N T I N
H I S T O R Y O F C O M P A
N Y

19. F I N A N C I A L
P E R F O R M A N C E
Period ending
(months) 31-Mar-2006 (12) 31-Mar-2005 (12) 31-Mar-2004 (12)
Net sales 10449.10 9373.70 8365.65
Other Income 37.10 10.20 66.22
Total Income 10486.20 9383.90 8431.88
Cost of goods sold 9058.10 8536.50 7679.35
OPBDIT 1428.10 847.40 752.53
PAT 988.60 737.90 579.98
Gross Block - 1614.30 1448.97
Equity capital - 580.00 290.00
EPS (Rs.) - 12.72 20.00
DPS (Rs.) - 5.35 8.50
BV (Rs.) - 37.46 61.96
P/E range (x) - 0.0 - 0.0 0.0 - 0.0
Debt / Equity (x) - 0.24 0.05
Operating margin (%
of OI) 13.6 9.0 8.9
Net margin (% of OI) 9.4 7.9 6.9

20. F I N A N C I A L
P E R F O R M A N C E
THE STOCK EXCHANGE MUMBAI (BSE)
QUARTER
ENDED
HIGH * LOW * CLOSING * MARKET
CAPITALISATION
**
AVG.
VOLUMES
PER DAY ***
Mar. 31
2004
301 210 260 7540 199
Mar. 31
2005
259 161 243 14094 424
Mar. 31
2006
578 366 539.75 3132 255
* In Rupees per share of Rs. 10 each
** In INR Million
*** Number of shares ('00)
# The price adjusted for dividends and splits.

21. C O M P E T I T O R S
Amar Remedies Limited
Amarshiv Opticals Limited
Colgate-Palmolive (India) Limited
Dabur India Limited
Fem Care Pharma Limited
Gillette India Limited
Godrej Consumer Products Limited
Godrej Industries Limited
Gujarat Meditech Limited
Henkel India Limited
Henkel Spic India Limited
Hindustan Lever Limited
Hipolin Limited
Ideal Optics Limited
J L Morison (India) Limited
Jyoti Cosmetics (Exim) Limited
Muller & Phipps (India) Limited
My Fair Lady Limited
Nirma Limited
Paramount Cosmetics (India) Limited
Parikh Herbals Limited
Pee Cee Cosma Sope Limited
Procter & Gamble Hygiene And Health
Care Limited
Reckitt Benckiser (India) Limited
Shikhar Leasing and Trading Limited
Shri Niranjan Ayurved Bhavan Limited
Swastik Surfactants Limited
VEL Software Limited
Vashisti Detergents Limited

22. F U T U R E
MARICO YESTERDAY (1991) MARICO TODAY (2005)
A sales turnover of Rs. 1059 million A sales turnover of Rs. 10128 million
Profit after tax of Rs. 24 million Profit after tax of Rs. 701 million
Net worth of Rs.33 million Net worth of Rs.2169 million
Two products with brand names -
Parachute and Saffola
12 Brands, 3 of which are Market Leaders
Two factories - a coconut oil plant 7 Factories and sub - contract facilities
Around 400 employees A total strength of around 1000 members

23.  The immediate plan is to expand business in a focused, de-risked manner
by using newer channels of distribution and launching new skin care
treatments and products.
 With its continuous efforts to move up the value chain, Marico has been
contemplating entering the hair wash segment through Parachute
Shampoo.
 Re-launch existing brands such as Parachute, Shanti Amla and Mediker
 Parachute came in a new pack
 Mediker was incorporated with natural ingredients such as neem,
camphor and coconut oil to fight lice
F U T U R E

24. T H A N K
Y O U