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*MaricoBeauty & Wellness SolutionsHair Care, Health Care, Skin Care Products & Services (Solutions)Successful transformation from an edible oils businessA leading Indian MNC GroupMarket Capitalization ~ Rs. 10,000 Crore + (~USD 2 Billion)TurnoverFY 12~Rs. 4008 Crore (~USD 818 million)ProfitFY 12~Rs.317 Crore (~USD 65 million)Net Worth ( FY12)~Rs. 1143 Crore (~USD 233 million)Turnover from overseas 24%Sustained Profitable Growth..acceleratingTurnover 21% Profits 23% (5 yr CAGR)12 acquisitions in 6 years
*Beauty & Wellness Brands
Hair Care Hair Oils Pre wash & Post wash Healthcare Healthy edible oils Functional Foods Skincare Cosmetic dermatological Services/Products Male grooming/ styling Deodorants Hair Creams/Gels
*Aim to Create Market Leadership BrandsMarico brands have a no 1 or no. 2 position in their respective segments over around 90% of its turnover* Company Estimates, # Market share data sourced from Neilson
BrandCategoryIndicative Market Share (%) #RankParachuteCoconut Oil (India)~ 46%1ParachuteCoconut Oil (Bangladesh)~ 80%1SaffolaSuper Premium Refined Edible Oils~ 55%1MedikerAnti Lice Treatment~ 96%*1ReviveInstant Fabric Starch ~ 65%*1Parachute Jasmine, Shanti Amla, Hair & Care, NiharHair Oils~ 24%2Parachute Hair CreamHair Cream (GCC)~ 27%1Kaya Skin ClinicDermatology led skin solutions(India)~ 35%1X-MenMale Shampoo (Vietnam)~ 47%1Fiance / Hair CodeHair Styling (Egypt)~ 57%1Hair CodeHair Dye (Bangladesh)~ 29%1
*Segments with Relatively Lower Competitive IntensityNot a battleground for multiple large MNC players
Coconut Oil in India and Bangladesh
Hair Oils in India
Super Premium Refined Edible Oils in India
Post Wash Hair Care Hair Creams / Gels / Post wash conditioners
Healthy Breakfast Foods in India
Dermatology led skin care solutions in India
Male Grooming in Vietnam
*Focus on GrowthPrioritize volume growth over short term profit
Volume growth to expand consumer franchiseMaintain unit margin within a band
Re-invest profits to reinforce established brands and build new growth engines for the futurePrototypingStrategic Funding (% of profits each year)
Inorganic Growth to supplement Organic GrowthConservative Dividend Policy
*Inorganic GrowthFocused on hair care, skin care and health care in IndiaInternational : primarily hair care and skin care
Internationally focused on developing markets in Asia and Africa
Establish potential to add value in branding and distribution
Enhance depth of category knowledge in hair care / skin careLeverage across all Marico geographies
*Key Focus AreasBranding Consumer Insight
DistributionNetwork Reach and Quality leveraging Information Technology
Innovation Product and Process
Talent
**Coconut OilVolume growing in rigid packs ~10% Likely medium term volume growth : 6% -8%Grow the branded marketConversion of loose to brandedMicro marketingFocus on smaller market segmentsRural growthMarket Size
Branded ~ INR 24 bn (~USD 490 mio)Loose ~ INR 8 bn (~USD 175 mio)Volume Market ShareParachute CNO47%Nihar 6%OOM 1%
Total 54%
*Hair Oil
Market Share of Marico in Hair Oil Market ~ 24%, up from 17% in FY 04
Aims to Gain Market Share in ~INR 3500 (~USD 710 mio) category
Significant participation in all key sub-segmentsValue added coconut oilsLight Hair Oils Amla based oilsCooling OilsAyurvedic Oils
Likely Medium term Volume Growth (Rigids) ~ 17%Shift from Loose OilHigher incomes higher frequency of usage
*Edible oil to a Lifestyle BrandFunctional Foods SpaceLow-Sodium SaltEdible OilFirst in refined oil blendsLifestyle products Riding a Healthcare Trend
**Marico acquires personal care brands of ParasMarico entered into an agreement to acquire the Personal Care business of Paras from Reckitt Benckiser The transaction is likely to get consummated by June 2012This acquisition gives Marico an opportunity to participate in the rapidly growing male grooming categories in India
CategoriesMarket Size INR/Cr2 year CAGRMarico ShareParas ShareConsolidated ShareDeodorants110035%-40%0%6%6%Hair Gels/Creams18020%-25%11%24%35%Post Wash conditioner8015%-20%23%68%91%
*International Business GroupGrowth in FY12 : 30%, boosted by the acquisition of 85% equity in ICP in Vietnam in February, 2011Comprises about 24% of Group Revenue (~USD 191 mio)Focus on Asia and Africa Currently Bangladesh, MENA, South Africa & South East Asia
CAGR 38%
Chart1
193
307
440
602
733
955
Turnover (Rs Cr)
Sheet1
2006-07193
2007-08307
2008-09440
2009-10602
2010-11733
2011-12955
Sheet1
International Business Consumer Products Turnover (Rs crore)
Sheet2
Sheet3
*Kaya Skin Care SolutionsTurnover in FY12 Rs. 279 Crores (~USD 56 mio) Growth of 33% Including Derma RxRevenues ~INR 65 Crore (~USD 13 mio)Double digit PAT margins
107 Clinics 82 in India, 19 in the Middle East, 2 in Bangladesh, 4 in Singapore and Malaysia
Customer base more than 600,000Derma Rx ~40000
Need to improve client retentionServices of repeat nature
Need to enhance share of Product revenue Increased from 13% to ~23% in FY12 Through Derma Rx products in IndiaTarget increase in revenue coming from products
*Future GrowthExpand Markets where we have dominant shareParachute coconut oil in India and BangladeshSaffola Premium healthy refined edible oilTapping Rural growth
Increase Share in other categoriesHair Oils in IndiaHair creams & gels in the Middle East
Introduce new products larger size than in the pastSaffola Oats and Parachute Advanced Body Lotion (for example)
Geographic ExpansionSouth East Asia, other parts of AfricaNew Product introduction in IBG Markets
Grow Kaya profitably in India and overseas
Inorganic Growth
Hold margins in a band focus on growth
**The most awarded FMCGFeatured amongst eight Indian companies in Standard & Poors list of Global Challengers
Featured as Most Innovative Company in Business Today
Kaya Ltd. won the Asia Best Employer Brand Awards 2011 for Excellence in Training
Indias Employer of Choice- CNBC-TV18, U21 Global and Watson Wyatt Worldwide
One of 13 Indian Companies listed in Asias Top 100 Fastest Growing companies Business Week
Marico ranked 18th in the Top Companies for Leaders 2011 from Asia Pacific in a study conducted by Aon Hewitt
Kaya Ltd. won the Most Admired Retailer for Health & Beauty' at the Images Retail Award 2009.
Parachute was ranked the 2nd Most Trusted Brand in Bangladesh - The Bangladesh Brand Forum
Saffola awarded the Marketing Campaign Gold Medal for its Saffolalife: Young at Heart campaign at the APPIES 2011 - Asia Pacific Marketing Congress
**Thank You
*Consumer Products BusinessHair CareHealth CareCoconut Oils
*International Business GroupHair CareSkin CareHealth CareCoconut Oil