PRESENTED BY:

Introduction

About MARICO

Turnover Countries

Vision And Mission

History of MARICO
1988 - Incorporation on 13th October 1989 - Changed name 1995 - Acquired Brand SIL from KFL 1997 Introduced two new Brands 1999 - Relaunching and Introducing

Contd..

2000 - Launching of Parachute Dandruff Solution

2001 Introduced Anti- Bacteria starch 2004 launches advertising campaign Saffola Gold 2007 Acquired - Launched 2008 Ranked 6 th - Growth

Maricos Culture and Values

Open Culture
Participative form of management Empowering Merit based Selection

Contd.
Job rotation
Learning forums Value workshops The HR principle in Marico is Involvement leads to commitment

Organizational structure

Partner (CEO, Head-Sales, Ops, Regional Head, HR) Manager (ASM, RSDM, ROM, Sales HR Mgr,, Sales IT Mgr) Junior Manager 3 (Executives e.g. TSE)

Junior Manager 2 (Senior Officers e.g. TSO)

Junior Manager 1 (Officers)

Worker

Marico Values

Think Consumer TO BE BIG

Consumer-Centricity Transparency & Openness Opportunity-seeking Bias for Action Excellence Boundarylessness Innovation Global Outlook

Strategic Business Units of Marico

MARICO

HAIR CARE

NUTRITION & FOOD

SKIN CARE

Marico in Hair Care & Skin Care

Marico is a leading Indian group in consumer products& services in Global Beauty and wellness space. Maricos products and services in Hair care, skin care & healthy foods generated a turnover of about Rs.23.9billion during 2008-09. Maricos well known brands are Parachute, Saffola, Sweekar, Hair&care, Nihar, Shanti, Mediker etc Marico is present in skin care solutiions segment through Kaya Skin Clinics & soap franchise.

MARICOS RB MODEL
MARICOS RB MODEL

HAIR CARE

NUTRITION & FOOD

INTERNATIONAL RB DEVELOPMENT (WHOLLY OWNED SUBSIDARIES THROUGH ACQUISITION)

HAIR CARE

OIL OF MALABAR

PARACHUTE ADVANCED

SHANTI BADAM AMLA

SILK & SHINE

Parachute hair therapy

NUTRITION & FOOD SAFFOLA CHOLESTROL MGMT.

INTERNATIONAL RB DEVELOPMENT

MARICO BANGLADESH LTD.

MARICO EGYPT INDUSTRIES LTD.

MARICO SOUTH AFRICA PTY LTD.

MARICOS I/O MODEL

MARICOS I/O MODEL

KAYA

KAYA LIFE

SAFFOLA ZEST

CORPORATE LEVEL STRATEGY

Maricos corporate strategy Efficient Internal Capital Market Allocation

Restructuring

Efficient Internal Capital Market Allocation

Marico has intensively used the Internal Capital Market Allocation by acquisition of successful companies products. Acquisitions include: Enaleni pharmaceuticals Consumer Division Ptv.Ltd.

Restructuring
Marico has always believed in capturing the competitors products and then launching then in its own name. Marico acquired Nihar for HUL which seemed to be a competitor for Parachute. Marico also acquired Mediker from Procter & Gamble which seemed to be a threatened competitor.

BUSINESS LEVEL STRATEGY

BUSINESS LEVEL STRATEGY

DIFFERENTIATION 1.Saffola 2.Revive 3.Mediker

COST LEADERSHIP 1. SWEEKAR

FOCUS DIFFERENTIATION 1. Kaya 2. Kaya Life 3. Saffola Zest

FOCUS COST LEADERSHIP 1. SILK N SHINE

COST LEADERSHIP & PORTERS 5 FORCES MODEL Threat of new entrants: Navratna Lite, Fortune, Gemini,sunrich. Bargaining Power of Buyers: Vatika can produce oil in sachet, dabur anmol. Bargaining Power of Suppliers: Threat of Substitute Products: Godrej hair dye, Vasmol dye ,Garnier hair colour, Streaks hair color Rivalry: Dove Hair Therapy, Brylcreem.

DIFFERENTIATION
Threat of new entrants: Dove Hair Therapy, Pantene repair system. Bargaining power of buyer: Aliva crackers, brittania nutrilite. Bargaining power of supplier: Threat of Substitute Products: VLCC, Aliva Crackers Rivalry: Sundrop.

INDUSTRIAL RANKING OF PRODUCTS

BRANDS PARACHUTE OIL OF MALABAR HAIR & CARE PARACHUTE ADVANCE SHANTI AMLA REVIVE MEDIKER SAFFOLA TYPE MARKET SHARE INDUSTRY RANKING 1 2 3 3 1 1 1

COCONUT OIL 56% COCONUT OIL 38% NON STICKY 21%

VALUE ADDED 19-21% COCONUT OIL AMLA HAI OIL STARCH ANTILICE REFINED OIL 8-10% 100% 100% 100%

SWEEKAR

REFINED OIL

14%

Market share-Volume growth analysis of Marico Company at corporate level

Parachute 32%
32% 78%
11% 17%

Others- 11%

16%

Focused Hair Oil13%

15% 48% 13%

7%

6% 9%

Sweekar- 7% Kaya 6%

Saffola- 16%
IB- 15%

BCG MATRIX

Market share-Volume growth analysis of hair oil brands

Parachute Jasmine, Nihar, 78%

17%

Hair & Care

48%

9%

Parachute

Shanti Badam Amla

BCG MATRIX

Market share-Volume growth analysis of revive industry

78%

17%

48%

9%

BCG MATRIX

Market share-Volume growth analysis of antilice shampoo segment

78%

17%

48%

9%

BCG MATRIX

Market share-Volume growth analysis of Edible Oil

100% 78%

14%

17%

48%

9%

BCG MATRIX

Maricos 4 pronged strategy for growth

Strengthen existing brands like Parachute and Saffola by adding new brand extension, adding value by adopting a health positioning, and launching more variations. Example: Saffola atta mixes and Parachute gels Expand the international consumer business with key acquisitions in geographies like South Africa and Egypt. Also eying the booming African markets and strengthening its position in Bangladesh and West Asia. A focus on health and wellness, with close to 65 Kaya Clinics. Kaya has got into the weight-loss space with kaya Life Clinics Develop new products by prototyping them in small markets

Parachute is a leader, and Marico is sitting higher

in the branded coconut-oil segment.

Presence in hair care space Value added coconut oil Amla oil Estimated market size (Rs. crores) 200 Brand Market share (%) 85 Closest competitor Clinic

Parachute advanced jasmine Shanti Badam Amla Hair and Care Silk-n-Shine

350

10

Dabur Bajaj

Non sticky hair oil Post wash conditioner

250

18

Keo Karpin Bajaj Sunsilk, Livon

50

30

Hair gel and creams

80

Parachute after shower

30

Brylcreem

Recent Developments
Maricos coconut oil franchise comprising Parachute, Nihar and Oil of Malabar had a market share of 55% during the 12 months to May 09. Parachute coconut oil in rigid packs, the focus part of the portfolio, grew by about 13% in volume over 09. Saffola, Maricos second flagship brand, has bounced back to a 13%growth in as compared to previous year.

Comparative Performance Analysis

Sales & Services Net Profit s Rs Crore) 59 70 87 113 169 Cash Profit s (Rs Crore) 72 83 137 187 220 Return on Average Net Worth

(Rs Crore) 2003-04 2004-05 2005-06 2006-07 2007-08 888 1007 1144 1557 1907

(%)

31 35 36 50 67

2008-09

2388

189

258

49

FUTURE STRATEGIES
The future of the company lies in Volume Growth. Edible Oil segment: Marico is going to concentrate on cotton seed & mustard seed oil also in North India & South India. Concentration in Rural market will help Marico in volume growth & for building a strong network.

Suggestions
Marico can concentrate on Ayurvedic soaps, shampoos with coconut oil especially for the dandruff problems. It can also produce PARACHUTE HAIR THERAPY PACK including oil, shampoo, conditioner. Products of KAYA LIFE can be sold in the retail market

Thank You