Documente Academic
Documente Profesional
Documente Cultură
INDUSTRIES
LIMITED
Marico is one of the well-known FMCG companies In 1990 Marico entered into an agreement with
in India that have successfully created brands BOIL for the use of its coconut oil brand Parachute
in the largely commoditised business of hair oils and vegetable oil brand Saffola. It also purchased a
and edible oils. unit at Jalgaon, Maharashtra, for using it as a
manufacturing base.Thereafter, to add to its
Background product portfolio, the company made several
acquisitions.The prominent amongst these is the
Marico is a leading Indian company with business acquisition of Procter & Gamble's anti-lice
interests in manufacturing and retailing personal treatment business branded under the name
consumer products as well as providing services in Mediker in 1999, followed by acquisition of the
the beauty space.The company's history can be facilities of Kanmoor Foods at Saswad, Maharashtra
traced back to 1948 when the Mumbai-based for manufacture of jams, sauces and other fruit and
Mariwala family having a presence in the trading vegetable products in the 2000. In 2001,
business set up Bombay Oil Industries Ltd Marico acquired the Parachute and Saffola
(BOIL).The manufacturing facilities of brands from BOIL.
BOIL comprised of a coconut oil
extraction plant, vegetable oil Marico ventured into skin care
refinery and a chemical plant. Over products in 2003 through the
the years, BOIL expanded and acquisition of Sundari LLC in the
diversified into branded consumer USA, a manufacturer of luxury
products.The promoter family then ayurvedic products and having a
went on to incorporate a company turnover of approximately US$ 1.1
called Marico Foods Limited million.This entry in the skin care
(subsequently called Marico products market represents Marico's
Industries Limited and later Marico first acquisition in a developed
Limited) in 1988 and transferred country. In 2004, Marico commenced
BOIL's consumer products division operations under the banner of Kaya
to this company. Skin Clinics; offering scientific, unisex
dermatological procedures as well as
Marico Hair care, foods, 1988 Mariwala family India, USA, Canada, India, Bangladesh
edible oils, fabric Middle East,
care, personal care Asia Pacific
92
institutional investors own 12.1 per cent of the
shares and Indian financial institutions have 11.1
per cent share. Indian public, non-promoter
corporates, trusts and non-resident Indians hold
the remaining shares.
Financial analysis
Product lines in the Consumer Products
segment include coconut oil, hair care, anti-lice In 2005 the consolidated turnover of the company
treatment, refined edible oil, fabric care, (inclusive of the turnover of its subsidiaries and
processed foods as well as its distribution Sundari LLC) crossed the US$ 200 million mark as it
alliance with Indo Nissin Foods. The brands in ventured into new businesses and new geographies.
this segment and their extensions occupy The revenues of the International Business Group,
leadership positions with significant market including the revenues of the two subsidiaries in
shares in their respective product categories. Bangladesh, crossed the US$ 20 million mark.
The flagship brand Parachute has maintained
its market share at over 50 per cent in India On a standalone basis the company has notched a
in the coconut oil category. sustained revenue growth up from US$ 130 million
in 1999 to US$ 218 million in 2005, an impressive
In the skin care services segment, Kaya Skin CAGR of 10 per cent. Raw / refined oils contribute
Clinics offer US FDA approved dermatological nearly 70 per cent to the revenue, hair oils
procedures like anti-ageing services, permanent contribute about 13 per cent, with the rest being
hair reduction, face rejuvenation, pimple removal, contributed by other products and services.The
etc as well as beauty products. Beauty products operating margin and net margin were 9.7 per cent
include skin lightening complex, under-eye gel, and 7.7 per cent respectively in the year 2005
moisturising sunscreen and night creme. There having witnessed an increase over the previous
are 42 Kaya clinics in India and 2 in Dubai, AU. year mainly on account of a fall in raw material
Kaya targets high-income customers in the age prices (mainly copra and karadi oil). Net
group of 16-60 years across metros and mini profitability grew at a CAGR of 12 per cent
metros in India. Its products are a result of between 1999 and 2005, despite both Sundari and
extensive skin-care research in derma-cosmetic Kaya being at a development phase and thereby
laboratories based in France, UK and USA. The unable to contribute to their fullest potential.
Global Ayurvedics segment comprises the Sundari
skin care line that has 28 products including The company continues to remain low on debt,
cleansers, moisturisers and essential oils with with a debt-equity ratio of 0.24. It has also
formulations using plants and floral extracts consistently shown a return on capital employed
sourced from India. higher than 25 per cent over the years.
94
Global presence
Marico's contribution in making
‘Made in India’ global Americas Asia-Pacific Middle east
Globalisation at a glance
• International Business Division has a turnover of
US$ 20 million, comprising of 10 per cent of the
company's total turnover
• Strong franchise across USA, Middle East, Asia and
Australia
• Presence in the US skin care market as well as the
spa market in leading hotels globally after the
acquisition of Sundari LLC
• Operating subsidiary in Bangladesh, which is the
market leader in coconut oils in the country
• Acquisitions of three soap brands in Bangladesh in
the last two years
www.maricoindia.com
97