Uncommon sense

November 2008

Disclaimer
This investor presentation has been prepared by Marico Limited (Marico) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute an offer. No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be forward looking statements, including those relating to the general business plans and strategy of Marico, its future financial condition and growth prospects, future developments in its industry and its competitive and regulatory environment, and statements which contain words or phrases such as will, expected to, horizons of growth, strong growth prospects, etc., or similar expressions or variations of such expressions. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to risks with respect to its hair care, its healthcare business and its skin care business. Marico may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation cannot be copied and disseminated in any manner. No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of Marico. This presentation is strictly confidential. 1

Marico Overview
Beauty & Wellness
Consumer Products, Services and Solutions Hair Care, Health Care, Skin Care

A leading Indian FMCG Group

Total Sales & Services (FY08) Net Worth ~Rs. 19.07 billion ~Rs. 3.63 billion

Sustained Profitable Growth(3 year CAGR)

Turnover 29% PAT 39%
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Beauty & Wellness Brands

Hair Care
Hair Oils Pre wash and Post wash

Healthcare
Premium edible oils Functional Foods Kaya Life

Skincare
Cosmetic dermatological Services/ Products Ayurvedic skin care products Soaps

Sustained Profitable Growth

25,000 20,000
C

Strong Growth in Sales and Income

9% R2 AG YoY 29%

(Rs. Mio)

15,000 10,000 15,569 5,000 0 FY06 FY07 FY08 H1 FY08 H1 FY09 11,439 9,329 12,044 19,067

Growth from all businesses in Q2 FY09

Inflation led Growth : 16% Organic Growth : 11% Inorganic Growth : 3%
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Source: Marico Annual Reports, Consolidated Financials for respective years

Sustained Profitable Growth

EBITDA and EBITDA Margins
3,000 2,500 (Rs. Mio) 2,000 1,500 1,000 500 0 FY06 FY07 FY08 H1 FY08 H1 FY09
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EBITDA

EBITDA Margin 14.0%

17.0% 15.0% 12.4% 13.0% 11.0%

12.6%

12.8%

12.9%

1,986 1,440

2,462

1,308

1,496

9.0% 7.0% 5.0%

Source: Marico Annual Reports, Consolidated Financials for respective years

Sustained Profitable Growth

Consistent Across Quarters
Sales and Services
32 consecutive quarters Since Q2 FY 01

Profit after Tax

36 consecutive quarters Since Q2 FY 00

* Growth in quarterly performance measured by comparing quarterly performance of the relevant

quarter compared to similar quarterly period of the previous year
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Turnover Growth Organic & Inorganic

Organic Growth
Expand market
for dominant brands

Inorganic Growth
Contiguous Categories

Gain market share

for No. 2, No. 3 brands

India Overseas

New Offerings
Products and services

India itself as a market

Hair Care Market
India has 16% of the world population Average length of the human hair ~ Twice that of the world average Indias share in World hair 28%

Heart Care Market

Lifestyle Modification

Skin Care Market

Currently a low percentage of disposable income
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Coconut Oil
Grow the branded market
Conversion from loose to packed Micro Marketing
Focus on smaller market segments

Parachute Market Share 48% (12 months ended August 2008) Volume growth Q2FY09 in rigid packs : 12% Nihar Acquired from HUL in Feb 2006
Adds another 7% - 8% market share

Sustainable market growth in coconut oil 7% to 8%

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Hair Oil
Differentiated offering Gain market share
FY04
Dabur Marico Deys Medical Bajaj 35.6% 17.8% 10.1% 9.0%

12 months ended August 08

29.9% 20.4% 6.2% 10.9%

All India Urban and Rural Market share for value added coconut oil, non-sticky hair oils, Amla and cooling oils
Source: A.C.Nielsen

Volume Growth (Rigids) Q2 FY09 : 14%

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Post Wash Hair Care

More Modern and Youth Products Invest in category creation

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Heart Care in India

WHO Statistics Increased awareness of heart care issues Lifestyle modification

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Saffola (Premium Refined Edible Oil)

Strong Good for Heart positioning. Doctor recommended Safflower Oil and its blends Premium niche

Volume Growth H1FY09 : 18%

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New Product Pipeline

Prototype Methodology
Enables experimentation & de-risked growth

Products Successfully Prototyped

Saffola functional foods Cholesterol and Diabetes Management Atta Mix Revive Liquid Stiffener Parachute Advansed Starz - Cream Gel, Gentle Shampoo and non-sticky hair oil targeted towards kids

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Current Prototypes
Maha Thanda
Ayurvedic Cooling Hair Oil with 21 herbs which helps in reducing stress, headache and aids good sleep.

Parachute Night Repair Crme

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Organic Growth
3 year CAGR (upto FY08) 11% 46% 20%

Growth in Volumes Parachute Coconut Oil Hair Oil (Rigid Packs)* Saffola

Sustained growth in existing products New prototypes and product launches to fuel growth New categories: Post Wash Hair Care, Skin Care, Soap * Hair Oil includes Nihar Perfume Oil acquired in Feb 2006
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Inorganic Growth
Brands Products Primary Markets Year of Acquisition

Caivil, Black Chic and Hercules

Hair Care and Health Care

South Africa

2007

Fiance and HairCode

Hair Cream and Gels

Egypt

2006

Nihar

Coconut Oil and Perfumed Coconut Oil

India

2006

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IBG Gulf
Commenced with targeting expat Indian
Parachute coconut oil

Introduced hair creams

Targets Arabs too Market leader in the UAE Closing gap on leaders in KSA

Cream Restaged on platform of nourishment and protection from harsh water

Addresses local need Supported by localized advertising using regional celebrity endorsement
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IBG Bangladesh
Parachute gaining market share steadily 70% (12 months ended August 2008) up from 66% on a year-on-year basis.

Retail Reach ~ 3,70,000

Marico Bangladesh turnover (FY08) ~ 1.2 bn

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International Business
Share of Groups business up from 8.4% ( 2004) to 16% (2008) Leadership in coconut oil in Bangladesh Significant market share in hair creams in UAE More than 60% share of hair cream & gels in Egypt
International Business Consumer Products Turnover (Rs mio)
3500 3000 2500 2000 1500 1000 500 0 3068 1931 955 1171

2004-05
Source: Marico Annual Reports

2005-06

2006-07

2007-08

* Includes South African operation for part year (Rs 198 mio)

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IBG - Egypt
Fiance and HairCode acquired in Sep 06 and Dec 06 Achieved Rs. 883 mio turnover in FY08 Margins ~ 18% Consistently gaining on market share since acquisition
Current Share ~ 62%

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IBG South Africa

Acquisition of the consumer division of Enaleni Pharmaceuticals Limited, South Africa in October 2007 Entry into the South African ethnic Hair care and Health care market estimated to be in the region of ZAR 1.1 billion ( about Rs. 6 bn) growing at ~15%. Current annualised Turnover is about ZAR 95 Million (Rs 530 mn) Comprises 3 leading brands, viz. Caivil in premium ethnic hair care, Black Chic in VFM hair care, Hercules in OTC Health Care.

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Entrenched Brands
Brand
Parachute Parachute

Category
Coconut Oil (India) Coconut Oil (Bangladesh) Refined Safflower Oil and its blends Anti Lice Treatment Instant Fabric Starch

Indicative Market Share (%) #

~ 48% ~ 70%

Rank
1 1

Saffola

~ 98%

Mediker Revive

~ 90%* ~ 80%*

1 1

Parachute Jasmine, Shanti Amla, Hair & Care, Nihar

Hair Oils

~ 21%

Dominant brand categories: Sector defining categories:

Parachute, Saffola, Mediker Revive, Kaya

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* Company Estimates, # Market share data sourced from A.C. Nielsen for 12 month period ending August 2008

Sources of Competitive Advantage

Market Leadership Portfolio of well recognized brands and extensions Segment leaders and segment defining brands Parachute, Saffola, Mediker, Revive, Kaya Weak competition

Wide Distribution Network

Strong pan India distribution network 32 C&F agents servicing 3,600 distributors and stockists Reaches approx 2.5 million retail outlets in India IT enabled connectivity with key distributors

Focus on Innovation

R & D Centre, with over 30 technically qualified scientists Successful introduction of various product and packaging innovations Mediker oil, Saffola blends, Parachute Therapie, wide mouth jar Key new categories identified include Kaya Skin Care Clinics, Revive

Prudent Cost Management

Structured process of identifying project ideas Projects in packaging designs, improving yields, tax structuring etc. Consistent focus on effective cost management
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Kaya Concept
Safe, effective, result oriented cosmetology
in a spa like ambience

Skin care solution clinics & Branded products

77 Clinics 67 in India 20 cities, 10 in the Middle East

High efficacy- Holistic methodology, world class technology Customer base more than 350,000, very high satisfaction levels Turnover in FY08 Rs. 1.0 bn
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Kaya Growth
Clinic expansion 15 per year New Services
Skin Renewal

New Products
Range of Anti-Ageing products under Kaya Revive and Firm

New Initiatives
Kiosks

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Kaya Middle East

Kaya clinics present in 10 clinics

8 across UAE, one each in Oman and Saudi Arabia Plans to open more clinics in these territories Current turnover at about Rs 200 million

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Kaya Life
Holistic Weight Management

Sustainable weight loss

Synergy 4 System

Three centers in Mumbai Juhu, Malad and Bandra

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Performance in Numbers
FY06
(Rs. crore, except ratios)

FY07

FY08

Three months ended Sep 08

603 74 47 60.9 391 0.77 12.2 7.8

Three months ended Sep 07

464 65 42 60.9 266 0.69 14.0 9.1

Sales/ Services Income EBITDA Net Profit after Tax Equity Capital Net worth EPS (Rs.) EBITDA Margin (%) PAT Margin (%)

1,144 144 87 58 261 1.5 12.6 7.6

1,557 199 113 60.9 192 1.9 12.8 7.3

1,907 246 169 60.9 315 2.8 12.9 8.9

Source: Marico Annual Reports, Consolidated Financials for respective years

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Capital Expenditure & Funding 3 years

Capex for Kaya Normal Capex New Office premises (net) Rs 750 million Rs 500 million Rs 1000 million

Debt at present Rs 5.0 billion Operating cash flows sufficient to service this debt Acquisitions ???

Decided to be conservative in dividend to conserve resources for acquisition opportunities May maintain quantum of dividend, reduce payout %. Fresh equity only if a large acquisition opportunity is available
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Challenges
India New categories Making a success International Integrating acquisitions Managing Currency risk and volatility Kaya & Sundari Balancing growth & profitability Corporate Resourcing- Human , Financial Taxation - Contain climbing Effective Rates

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Outlook
Focus on maintaining the growth momentum
20% + growth with some stretch in the medium term Immediate term some slow down in rates of growth

Significant cost push in the recent past

Could have some impact on operating margins in the short run

No significant change in the competitive landscape Continue to invest in established and new brands / territories

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Recognition & Awards

Parachute is the 6th Most Trusted Brand in Bangladesh Global Brand Forum and AC Nielsen (2008) BusinessWeeks Asias Hot Growth Companies (2007) Overall rank 40th in a list of 100 companies Rank 4th in a list of 13 companies from India. CNBC-TV18 Indias Employer of Choice Awards 2007 Indias Employer of Choice Award HR Excellence Award Best Employer in the Consumer Products and Healthcare Sector Kaya Best Retailer in Beauty and Fitness Category (Sep 2007) India Retail Forum (Images) NDTV Profit - Business Leadership Awards in the FMCG (Personal Hygiene) category (July 2007) Marico has been rated among the Top Eight Indian Global Challengers Standard & Poors global rating of mid-size companies as on December 31, 2006. 33

Recognition & Awards

International Business - Parachute - The Gulf Marketing Review (GMR) Awards (Referred to as the Oscar of Marketing Awards) Best Brand Extension Award (Gold) (2006) Outstanding Marketing Achievement Award (Silver) (2006 & 2007) Asia Pacific Effie Awards, Singapore, 2008 Saffola World Heart Day" campaign (Bronze) One of Indias 10 best marketers Business Today (Sep 2006) Brand Leadership Award India Brand Summit 2006 (Sep 2006) Kaya Retailer of The Year Award Second consecutive Year Category Beauty & Health - India Retail Summit 2006
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Thank You