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Marico Yesterday and Today
 
 

About Marico:

 
  History of Marico:
 
Marico makes its maiden public issue human hair wigs uk
Restructuring - several companies
Consumer Products Division become Marico
Divisionalisation
Consumer Products Division
Fatty acids and Chemicals Division
Spice Extracts Division
Birth of The Bombay Oil Industries
Copra trading, crushing and refining of vegetable oils
A young man Kanji Moorarji
Set up a modest trade in spices
 
Marico - Then and Now:
               To understand how far Marico has come, all you need to do is take a look at what we inherited.
 
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
 
 

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.

 
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
Growing Market Shares
 
Overview of Brands Category Market Share % Rank
Parachute, Oil of Malabar Coconut Oil 55 - 57 1
Revive Fabric Starch ~ 100 1
Mediker Anti Lice Treatment ~ 100 1
Saffola & Sweekar High Margin Refined Oils in Consumer packs 17-18 3
Hair Oil Brands Hair Oils 14-17 2
Hair & Care Non-Sticky Hair Oil 16-19 3
Parachute Value Added Coconut Oil 21-25 2
Shanti Amla Hair Oil 10-13 2
Sil Jams 7 - 8 2
 

             Source: A.C.Neilsen Urban Retail Market Research and Company Sources.


Resilience against competition
 
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 - 12-14
 


  • 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.

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%.


Rs. Crore                 
 
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  
 



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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