Industrial Analysis: By: Akanxa Singh Reg No. 1927 MBA (2019-21)

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Industrial

analysis
By: Akanxa Singh
Reg No. 1927
MBA(2019-21)
Company and Nature of its Operations

• Marico Limited headquartered in Mumbai, Maharashtra, India,


carries on business in branded consumer products.
• Marico manufactures and markets products under brands such as
Parachute, Parachute, Nihar, Nihar Naturals, Saffola, Hair & Care,
Revive, Mediker, Livon, Set-wet and Code 10 etc.
• Marico’s products reach its consumers through retail outlets
serviced by its distribution network comprising regional offices,
carrying & forwarding agents, redistribution centers and
distributors spread all over India.
Geographical Spread of Marico

• India
• Egypt
• Bangladesh
• South Africa
Players in the Industry
Below are the top 7 Marico competitors:
• ITC Limited.
• L'Oreal.
• Nirma Ltd.
• Colgate-Palmolive.
• Procter and Gamble.
• Dabur India.
Strength
The story of evolution has the brand to Weakness
evolve through a host of successful product Failed products has had a number of
which moved from mass markets to niche product failures like the parachute hot
markets oil or the Saffola snacks

SWOT

Opportunities Threats
Growth in new markets instead of Chemical based content customers
looking at established markets most of across the world are apprehensive of
the Marico's expansion attempts have dangerous of the use of chemical
been into emerging markets like Egypt, additives in consumables and this has
Vietnam, Bangladesh, etc. created a shift of preference of organic
products.
Where to Play? (Target Areas)

Emerging Markets of Asia and Africa:


• Hair and skin nourishment.
• Male grooming

Regional Jewels:
• Foods in India and Vietnam
• Ethnic hair care in Sub Sharan and South Africa
Focus on Growth:

Focus on volume growth and market share gain:


Subject to threshold operating margins.

Innovation and renovation to fuel growth:


Follow prototyping approach for learning and adapting

Leverage scale advantage for improving cost structure:


Re invest for building capabilities

Organic growth is the first builder:


Inorganic growth: a top up
MARICO’S PHILOSOPHY
Boundarylessness
Opportunity seeking
Transparency & openness
Excellence
Consumer centric
Innovation
Bias for actions
Global Outlook
BRIEF PROFILE OF MARICO’S TOP
MANAGEMENT
HARSH MARIWALA
 Chairman at Marico kaya ltd..
 Education:Bachelor’s degree in Sydenham college of commerce amd economics

SAUGATA GUPTA
 CEO of Marico ltd. (Consumer product)(2007-2013)
 MD of Marico ltd (since 2014)
 Education: IIT Kharagpur, IIM Bangalore
RAJIV NAIR
 CEO of Kaya ltd. (since 2016)
 Education: Indian School Of Business , MMM, Marketing from NMIMS
 Experience: CEO of celio , Business Head of General Merchandise &
Apparel Hypercity Retail India ltd.

VIVEK KARWE
 CFO Of Marico ltd (since 2000)
 Assistant Manager Finance in ICICI Bank
 Assistant Manager Finance in Procter & Gambler
 Education: ICAI , Bcom from R A Podar college of commerce & economics (1st in Mumbai
University)
CSR POLICY OF MARICO
• Scalability of social organization.
• Community development.
• Education.
• Health care.
• Livelihood enhancement.
• National emergency & disaster relief.
CSR ACTIVITIES BY MARICO
TOP 5 PLAYERS IN CONSUMER GOODS
INDUSTRY
TOP 5 PLAYER’S PROFILE OF TOP
SANJIV PURI
MANAGEMENTS
 NAKUL ANAND RAJIV TANDON
 CEO of ITC  Executive director  Executive director & CFO
 Education: IIT , Kanpur  Education: Bishop Cotton School, Shimla  Education: CA

ISSAM BACHAALANI M CHANDRASEKAR M S JACOB


 Managing Director  Executive Vice  CFO
& CEO President  Education: ICAI
 Education:
Lebanese American
University,
Marketing/BS/
Economics

SANJIV MEHTA SRINIVAS PATHAK


 Chairman / CEO  Executive Director/CFO
SURESH NARAYANAN SHOBINDER DUGGAL
 Chairman/ MD  Director/CFO

PRAKASH JAYANTILAL SCHAUNA CHAUHAN ALISHA CHAUHAN


CHAUHAN  CEO & NADIA CHAUHAN
 CHAIRMAN/MD  Director
DETAILED PROFILE OF CEO OF ITC AND
CEO OF HUL
Sanjiv Puri. Sanjiv Puri (57), is the Chairman &
Managing Director of ITC effective May 13, 2019. He
was appointed as a Director on the Board of ITC
with effect from December 6, 2015 and Chief
Executive Officer from February 5, 2017. Prior to
this, he was the Chief Operating Officer of ITC since
July 22, 2016.

He was re-designated as the Managing Director of ITC


effective May 16, 2018. Puri is an alumnus of the
Indian Institute of Technology, Kanpur, and Wharton
School of Business. He joined ITC in 1986.
Prior to his appointment as a Director on the Board
of ITC, Puri was President, FMCG Businesses -
Cigarettes, Foods, Personal Care, Education &
Stationery Products, Matches and Agarbattis, since
December 2014
Sanjiv Mehta (born 1959/1960) is an Indian business
executive, and the chairman and managing director
(MD) of India’s HUL. Mehta became the CEO and
MD of Hindustan Unilever in October 2013, and in
June 2018 was appointed as the chairman and MD.
He also heads Unilever's business in South Asia, as
cluster president encompassing businesses in Pakistan,
Bangladesh, Sri Lanka and Nepal.

Born in Kanpur, Mehta studied in Mumbai and


Nagpur. He is a chartered accountant from the ICAI.

In April 2002 he was appointed as the Chairman and


Managing Director of Unilever Bangladesh . In 2007,
he moved to Manila as the chairman of Unilever
Philipines, and in 2008 was appointed as the chairman
of Unilever North Africa and Middle East (NAME).
EXTERNAL
ENVIRONMENT

BY : ROOPAM CHOUDHARY
MBA ( 1924 )
TOP 5 PLAYERS

• ITC Limited.
• L'Oreal.
• Nirma Ltd.
• Colgate-Palmolive.
• Dabur India.
CSR INITIATIVES
• If the world today is moving, slowly but consistently, towards conscious
and responsible action, it's because of one simple idea: everyone can be
a change-maker.
• It's a precept Marico has believed in for years.
• In every layer of our organization, and in the DNA of every member, is
embedded a desire to make a difference; to adopt every possible
measure, big or small, that will take us further along the road to
sustainability. We can, and we do make a difference. We see it not only
in bottom lines and awards, but also in enhanced relationships, a safer,
cleaner environment and a corporate ethos that has sustainability
embedded in its very core.
Sustainable Procurement

As Marico's material and service requirements are varied, sustainable


procurement becomes critical for the business. We aim to procure goods
which are economically viable and which benefit the organization, customers,
society and the environment.
Energy Management

As a responsible corporate, we aim to reduce


our energy consumption and adopt
environmental-friendly production technologies.
Water Management
Availability of water is a global challenge today
and as a part of our ongoing sustainability
commitment we aim to set new benchmarks in
this material area of our business.
Waste Management
Waste management is an area of high relevance to our
business and we are committed to reducing our waste on a
year-on-year basis and having a robust waste recycling and
reusing mechanism in place.
Product Responsibility
The products we manufacture are used by
people every day, and our consumers expect
our products to be environmentally and socially
responsive. Therefore, we aim to provide
products that are safe in nature and do not
impact the environment and community
adversely while maintaining high quality
standards.
Future-ready capability building
Building competencies is a progressive
process; in a dynamic environment it
becomes critical to build future-ready
capabilities for business and individual
growth.
• Farmer First Program
Majority of Marico's raw materials are agricultural produce. Our "Farmer First"
programme was launched a few years ago, with the aim of solving immediate issues
and empowering farmers for the future. The initiative has helped the farmers to
strengthen agricultural productivity and multiply yields on a sustainable basis.
• Coconut: Boosting Tradition with Technology
We constantly engage with coconut farmers and train them on agricultural
management. Marico is proud to have conducted over 150 sessions, training more
than 4500 farmers, and enrolling more than 500 farmers for a scientific
implementation of practices.
Safflower productivity development
As a responsible stakeholder in the safflower value chain, Marico stepped
in to help, with its Safflower Extension Programme. The plan was multi-
faceted, aimed at improving various aspects of the value chain.
IMPACTS
FINANCIAL ANALYSIS
TOTAL REVENUE
8000 7334

7000 6333.09
6024.45 5935.92
6000 5732.98
S
A 5000
L 4000 SALES REVENUE
E 3000 (RS IN CR)
S
2000
1000
0
2015 2016 2017 2018 2019
YEAR
PROFIT
1400
1263

1200 1148.7
1117.02
1028.7
P 1000
R 821.65
800
O
F 600 PROFIT
I
T 400

200

0
2015 2016 2017 2018 2019
YEAR
SHARE HOLDINGS
%AGE
8.26 TOTAL PROMOTOR
HOLDING
MUTUAL FUND
26.56
DOMESTIC
59.71 INSTITUTIONAL
FOREIGN INSTITUTIONAL

5.47 OTHER PARTIES


4.2
RATIOS
Ratios 2014-15 2015-16 2016-17 2017-18 2018-19

Current ratio 1.99 times 1.74 times 2.15 times 2.31 times 2.62 times

Quick ratio 0.87 times 0.86 times 0.67 times 0.78 times 1.21 times

Return on net 23.26% 27.01% 28.81% 27.03% 32.26%


worth
Fixed asset turnover 1.91 times 1.92 times 1.72 times 1.67 times 1.76 times
ratio
RECENT DEVELOPMENTS
ACHIEVEMENT
• 2017- IPRCC for its PR Campaign.
• 2017- Flame Awards (Set Wet in Nepal).
• 2017- Saffolalife’s #protectherheart campaign wins gold
and Bronze at IPRCCA Awards.
• 2016- Africa Hair Awards.
• 2016- International Public Relation Award(IPRA) PR
week Awards Asia.
• 2016- The Exchange4media Pitch Top 50 Brands.
• 2015- Awarded for many products in Asia at the APPIES.
• 2014- SABRE South Africa( Mediker ).
MERGERS

Marico has been on acquisition spread over the last two years. It
recently acquired the Malaysian brand code 10, Derma, Rx in
Singapore via wholly owned subsidiary kia ltd. , Ingwe in South Africa
and also took a 85% stake in International consumer products
corporation of Vietnam.
Bangladesh account almost 50% of the company’s total International
business at rupees 350 crores .
TALENT VALUE PROPOSITION & CULTURE

• Early Empowerment.
• Tapping global resources for learning & development.
• Young Boards & Reverse Mentoring.
• Deploying Artificial Intelligence.
• Seeding “Engine 2”.
INNOVATION

• Premiumise within core hair oils.


• Building categories of the future.
• Premium hair care.
• Premium skin care.
• Broaden and scale-up of healthy foods portfolio.
• Extend into complete range in male grooming.
FUTURE PLANS
• Marico’s future plans include acquiring brands in the consumer and
skincare products.
• Target to achieve turnover of US$ 450 million in the next four year.
• Focus on both organic and inorganic growth.
• Plan to launch new products new products.
• Acquisitions of three soap brands in Bangladesh in the last two years.
• Strong franchise across USA, Middle East, Asia and Australia.

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