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Marico
Yesterday and Today |
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About
Marico:
- A leading Indian group operating in
- FY 2002-03 Turnover ~ Rs.7.75 billion (USD 163 Million)
- 12 brands and extensions with leadership in respective categories
Parachute,
Saffola,
Sweekar,
Hair
& Care, Shanti,
Mediker,
Oil
of Malabar, Mealmaker,
Sil,
Revive,
Kaya
and Sundari
- The Overseas Sales franchise of Marico's branded FMCG products
One of the largest amongst Indian Companies
- Marico's own manufacturing facilities are located at Goa,
Kanjikode, Jalgaon, Saswad, Pondicherry and Daman
Supported by subcontracting units
- In Bangladesh, Marico operates through Marico Bangladesh Limited, a wholly owned subsidiary
Manufacturing facility at Mouchak, near Gazipur
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History of Marico: |
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Marico makes its maiden public
issue |
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Restructuring - several companies
Consumer Products Division become Marico |
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Divisionalisation
Consumer Products Division
Fatty acids and Chemicals Division
Spice Extracts Division |
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Birth of The Bombay Oil Industries
Copra trading, crushing and refining of vegetable oils |
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A young man Kanji Moorarji
Set up a modest trade in spices |
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Marico - Then and Now:
To understand how
far Marico has come, all you need to do is take a look at what we
inherited. |
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MARICO
YESTERDAY (1991) |
MARICO
TODAY (2003) |
A
sales turnover of Rs. 1059 million |
A
sales turnover of Rs. 7755 million |
Profit
after tax of Rs. 24 million |
Profit after tax of Rs. 562 million |
Net worth of Rs.33 million |
Net worth of Rs.1930 million |
Two products with brand names - Parachute and Saffola |
12 Brands, 3 of which are Market Leaders |
Two factories - a coconut oil plant at Sewree, Bombay and a safflower refining plant (which has been shut down since) at Mazgaon, Bombay. |
6
Factories and sub - contract facilities |
Around 400 employees representing the blue collared work force, staff and managers. |
A
total strength of around 1000 members |
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Business Model / Philosophy:
Marico's business model is based on focused growth across all its brands / and territories driven by continuously improving value propositions to consumers, market expansion and widening its retail reach. The model ensures that Marico is present in unique / ethnic Indian Product or Services categories where typical MNCs would not be strong. Therefore, Marico does not, unlike many other Indian FMCG Companies, get caught in MNC cross fires.
Marico is a professionally managed Company that has built for itself a stimulating work culture that empowers people, promotes team building and encourages new ideas. This has, over the years, enabled Marico to grow its stature as one of the few successful Indian FMCG Companies. Marico was awarded the National Award for outstanding work in HRD by National HRD Network in 1994 as also the award for Top Performing Global Growth Company from India at the World Economic Forum in 1997. Marico aims to be the leader in each of the businesses; by heightened sensitivity to consumer needs, setting new standards in the delivery and quality of products and services through processes of continuous learning and improvement.
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Growing Consumer Franchise:
- Leveraging core sources of competitive advantage
Branding, Distribution, Cost Management and Innovation
- Marico has set up a fast growing franchise of new products and businesses
- An enviable record of 5 consecutive new product success stories
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Growing Market Shares
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Source:
A.C.Neilsen Urban Retail Market Research and Company Sources.
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Resilience against competition |
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Brand |
Category |
1992 (%) |
2003 (%) |
Parachute & OOM |
Coconut Oils |
48-49 |
55-56 |
Saffola & Sweekar |
Refined Oils in Consumer Packs |
5-6 |
9-12 |
Parachute Jasmine, Shanti, Hair & Care |
Hair Oils |
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12-14 |
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- Marico's Parachute and Saffola are among India's Top 100 Most Trusted Brands (Brand Equity survey)
Among Indian brands Parachute ranks 8th
- Parachute Ranks 35th and Saffola 66th amongst India's 100 Biggest FMCG
Brands (Brand Equity Survey - December 02)
- Parachute is probably the world's largest packaged Coconut Oil Brand
using one out of every twenty-five coconuts produced in India and
3 nuts of every coconut tree in India
Parachute volumes alone are more than 75% of the total shampoo volumes in India.
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Financial Highlights:
Marico has maintained a steady top line and bottom line growth over the last 10 years with a consistently healthy Return on Capital Employed (ROCE) of over 30%.
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Rs. Crore
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Particulars |
FY99 |
FY00 |
FY01 |
FY02 |
FY03 |
CAGR% |
Sales & Services |
551 |
650 |
671 |
696 |
775 |
10 |
Profit before Tax |
44 |
43 |
50 |
58 |
64 |
12 |
Net Profit ( PAT ) |
38 |
36 |
46 |
50 |
56 |
13 |
Net Cash Profit (PAT + Dep) |
43 |
44 |
55 |
64 |
78 |
16 |
Earning per share-Annualised Rs. |
13 |
12.5 |
16 |
17 |
19 |
10 |
Book value per share (Rs.) |
41.5 |
49 |
59 |
68 |
67 |
13 |
Net Worth |
121 |
142 |
171 |
197 |
195 |
13 |
ROCE % |
42 |
33 |
33 |
32 |
31 |
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Marico was ranked 16th in terms of ROCE as per a
recent survey of 500 companies conducted by Business World. Its
rank was 4th among FMCG companies. Marico is one of the 20 corporates
in India, across industry segments, with a ROCE of above 25%. |
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Top |
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© 2003 Copyright Marico Industries Limited. All rights reserved. |
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