focus on growth

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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
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upon as having been authorized by or on behalf of Marico. This presentation is strictly confidential.
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Marico
 Beauty & Wellness Solutions
 Hair Care, Health Care, Skin Care Products & Services (Solutions)
 Successful transformation from an edible oils business
 A leading Indian MNC Group
 Market Capitalization
~ Rs.
10,000 Crore + (~USD 2 Billion)
 Turnover
FY 12
~Rs.
4008 Crore (~USD 818 million)
 Profit
FY 12
~Rs.
317 Crore
~Rs.
1143 Crore
 Net Worth ( FY12)
 Turnover from overseas
(~USD 65 million)
(~USD 233 million)
24%
 Sustained Profitable Growth……..accelerating
 Turnover
21%
Profits
23%
(5 yr CAGR)
 12 acquisitions in 6 years
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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
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Aim to Create Market Leadership Brands
Category
Indicative Market
Share (%) #
Rank
Parachute
Coconut Oil (India)
~ 46%
1
Parachute
Coconut Oil (Bangladesh)
~ 80%
1
Super Premium Refined Edible Oils
~ 55%
1
Mediker
Anti Lice Treatment
~ 96%*
1
Revive
Instant Fabric Starch
~ 65%*
1
Hair Oils
~ 24%
2
Hair Cream (GCC)
~ 27%
1
Dermatology led skin solutions
(India)
~ 35%
1
Male Shampoo (Vietnam)
~ 47%
1
Hair Styling (Egypt)
~ 57%
1
Hair Dye (Bangladesh)
~ 29%
1
Brand
Saffola
Parachute Jasmine, Shanti Amla, Hair
& Care, Nihar
Parachute Hair Cream
Kaya Skin Clinic
X-Men
Fiancée / Hair Code
Hair Code
Marico 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
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Segments with Relatively Lower
Competitive Intensity
• Not 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
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Focus on Growth
• Prioritize volume growth over short term profit
• Volume growth to expand consumer franchise
– Maintain unit margin within a band
• Re-invest profits to reinforce established brands and build new growth
engines for the future
– Prototyping
– Strategic Funding (% of profits each year)
• Inorganic Growth to supplement Organic Growth
– Conservative Dividend Policy
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Inorganic Growth
• Focused on hair care, skin care and health care in India
– International : 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 care
– Leverage across all Marico geographies
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Key Focus Areas
• Branding
– Consumer Insight
• Distribution
– Network Reach and Quality – leveraging Information Technology
• Innovation
– Product and Process
• Talent
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Coconut Oil
Volume Market Share
Parachute CNO
Nihar
OOM
47%
6%
1%
Total
54%
Market Size
Branded ~ INR 24 bn (~USD 490 mio)
Loose ~ INR 8 bn (~USD 175 mio)
Volume growing in rigid packs ~10%
• Grow the branded market
Conversion of loose to branded
Micro marketing
• Focus on smaller market segments
• Rural growth
Likely medium term volume growth : 6% -8%
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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-segments
–
–
–
–
–
Value added coconut oils
Light Hair Oils
Amla based oils
Cooling Oils
Ayurvedic Oils
Likely Medium term Volume Growth (Rigids) ~ 17%
• Shift from Loose Oil
• Higher incomes – higher frequency of usage
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Edible oil to a Lifestyle Brand
Riding a Healthcare Trend
Low-Sodium Salt
First in refined oil ‘blends’
Edible Oil
Functional Foods Space
Lifestyle products
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Marico acquires personal care brands of
Paras
 Marico entered into an agreement to acquire the Personal Care business of Paras
from Reckitt Benckiser
 The transaction is likely to get consummated by June 2012
 This acquisition gives Marico an opportunity to participate in the rapidly growing
male grooming categories in India
Categories
Market Size
INR/Cr
2 year CAGR
Marico Share
Paras Share
Consolidated
Share
Deodorants
1100
35%-40%
0%
6%
6%
Hair
Gels/Creams
180
20%-25%
11%
24%
35%
Post Wash
conditioner
80
15%-20%
23%
68%
91%
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International Business Group
Turnover (Rs Cr)
1200
955
1000
733
800
602
600
400
440
307
193
200
0
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
• Growth in FY12 : 30%, boosted by the acquisition of 85% equity in ICP in
Vietnam in February, 2011
• Comprises about 24% of Group Revenue (~USD 191 mio)
• Focus on Asia and Africa
– Currently Bangladesh, MENA, South Africa & South East Asia
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Kaya Skin Care Solutions
• Turnover in FY12 Rs. 279 Crores (~USD 56 mio)
– Growth of 33%
– Including Derma Rx
• Revenues ~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 600,000
– Derma Rx ~40000
• Need to improve client retention
– Services of repeat nature
• Need to enhance share of Product revenue
– Increased from 13% to ~23% in FY12
• Through Derma Rx products in India
• Target increase in revenue coming from products
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Future Growth
• Expand Markets where we have dominant share
– Parachute coconut oil in India and Bangladesh
– Saffola – Premium healthy refined edible oil
– Tapping Rural growth
• Increase Share in other categories
– Hair Oils in India
– Hair creams & gels in the Middle East
• Introduce new products – larger size than in the past
– Saffola Oats and Parachute Advanced Body Lotion (for example)
• Geographic Expansion
– South East Asia, other parts of Africa
– New Product introduction in IBG Markets
• Grow Kaya profitably in India and overseas
• Inorganic Growth
• Hold margins in a band – focus on growth
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The most awarded FMCG
•
Featured amongst eight Indian companies in Standard & Poor’s 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’
•
India’s Employer of Choice- CNBC-TV18, U21 Global and Watson Wyatt Worldwide
•
One of 13 Indian Companies listed in Asia’s 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
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Thank You
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17
Consumer Products Business
Coconut
Oils
Hair Care
Health Care
18
International Business Group
Coconut
Oil
Health Care
Skin Care
Hair Care
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