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Marico Limited
FMCG Industry Analysis: FMCG is acronym of Fast Moving Consumer Goods. The
FMCG industry has functions like production, distribution and marketing of consumer
packaged goods, these are the products that are consumed at regular intervals. FMCG
includes food & beverage, personal care, soft drinks, toiletries, and grocery items,
pharmaceuticals, plastic goods, paper & stationery and household products etc. They are
called fast moving because they are purchased frequently and consumed quickly, distinct
from durables goods which are generally replaced over a period of several years. The
industry offers range of job opportunities in functions such as sales, supply chain, finance,
marketing, operations, purchasing, human resources, product development and general
management.
The Indian FMCG sector is the fourth largest in the Indian economy and has a market size of
$13.1 billion. The sector is growing at rapid pace with well-established distribution networks
and intense competition between the organized and unorganized segments. Easy availability
of important raw materials, cheaper labour costs and presence across the entire value chain
gives India a competitive advantage. Penetration level and per capita consumption in many
product categories is very low compared to world average standards representing the
unexploited market potential. Mushrooming Indian population, particularly the middle class
and the rural segments, presents the huge untapped opportunity to FMCG players. It has a
strong and competitive MNC presence across the entire value chain.
POLITICAL FACTORS
ECONOMICAL FACTORS
SOCIAL FACTOR
TECHNOLOGY FACTOR
FMCG sector doesn’t require high technology and simplified technology is used.
SWOT analysis of FMCG Sector:
Strengths
Weakness
Bogus product.
Low exports.
Low investing in technology.
Opportunities
Threads
In addition to being a producer of consumer products, Marico also operates Kaya Skin
Clinic (81 exist in India, 13 in UAE and 2 in Bangladesh). The services offered by it are
designed and supervised by a team of over 250 dermatologists and carried out by certified
skin practitioners who have undergone more than 300 hours of training. The services are US
FDA approved and tested in-house, and conform to the highest international quality
standards. Kaya Skin Clinic has over 600,000 satisfied customers
Brands under Marico’s portfolio are brands including Parachute, Saffola, Hair&Care, Nihar,
Shanti Amla, Mediker, Revive, Manjal, Kaya Skin Clinic, Aromatic, Fiancee, HairCode,
SetWet, Zatak, Eclipse, Xmen, Hercules, Caivil, Code 78 and Black Chic.
Company Profile
TYPE: Public
FOUNDED: 1990
BSE: 531642
NSE : “MARICO”
Share Holding Pattern:
No. Of
Promoters Shares Holding
Registered Office:
Marico Ltd.
"Rang sharda”, Krishnachandra marg, Bandra reclamation,
Bandra (West),
Mumbai – 40005
Board of Directors:
BOARD OF DIRECTORS
NAME CATEGORY
Marico is a family-owned company with the promoters Harsh Mariwala and family
holding 63.45% of the total shares. Though the company is family-owned, it is
managed by professionals and the unique rotation policy of the company is also well-
known. Marico is a flat organization with only five levels of reporting between the
managing director and an operator on the shop floor. This flat structure helps the
company in being more responsive to the environment while providing enriched
roles for members. Keeping in mind the fast and ever changing business
environs, Marico's structure is dynamic and constantly evolving.
Financial Analysis of company in Past 1 year:
Marico’s Consumer Products Business in India grew by 11% in volume and 17% in value
during FY12 over FY11. This was achieved through growth across key established portfolios
– Parachute coconut oil, Saffola refined edible oil and hair oils as well as the introduction of
new products. The Company also achieved a higher rate of growth in its rural markets, taking
the share of rural sales in its revenue to 27%.
FY12 witnessed a steep rise in copra prices, particularly from the second quarter. The
Company passed on a part of this cost push through price increases and decided to absorb a
part of this abnormally high upward movement of input costs, in order to continue to grow its
franchise.
International business
Marico’s International business (comprising about 23% of the group’s turnover) grew by
22% over FY11. The underlying business growth was higher at 27%.
During FY11, Kaya’s skin solutions business achieved a turnover if INR 239 crore recording
a revenue growth of 31% over FY10, boosted by the acquisition of Derma Rx in May 2010.
The Kaya business without Derma Rx achieved a revenue growth of 7% over FY10. On an
overall basis Kaya made a small loss of INR 2.30 crore at the PBT level.
SWOT analysis of company:
Strengths:
Weakness:
Major sales are from its two brand Parachute Hair oil and Saffola.
Other brands profit is very low.
The company has seen a constant decrease in their income per share
ratio.
There is wide difference in Health care market share to its nearest
competitor Agro Tech foods.(Marico=23% and Agro tech34%)
Marico’s current ratio is 2.72, which is greater indeed than industry
standard.
Opportunities:
Threats:
Product Innovation:
Expansion Strategies:
Marico used various programs to improve Sales and making strong relationship
with retailers.
Outlets Category
Bandhan Wholesale
Unnati Chemist
Achievements:
Turnover and profit consistently growing over the corresponding quarter of the
previous year, for the past 42 quarters and more.
Most Marico brands enjoy a leadership position (No. 1 or No. 2) in their respective
categories.
Superbrands voted Parachute a Super Brand in UAE &Bangladesh and Hair Code in
Egypt.