Marico Limited (NSE:MARICO) is one of India’s leading consumer goods companies operating in the health, beauty and wellness space. With its headquarters in Mumbai, Marico is present in over 25 countries across emerging markets of Asia and Africa. It nurtures leading brands across categories of hair care, skin care, edible oils, healthy foods, hygiene, male grooming, and fabric care. In 2019-20, the company generated a turnover of INR 73.1 billion (USD 1.03 billion) through its products sold in India and chosen markets in Asia and Africa. Marico touches the lives of 1 out of every 3 Indians, through its portfolio of brands such as Parachute, Saffola, Saffola FITTIFY Gourmet, Coco Soul, Parachute Advansed, Hair & Care, Nihar Naturals, Livon, Set Wet, Set Wet Studio X, Veggie Clean, Kaya Youth, Travel Protect, House Protect, Mediker, Revive and Beardo.  Marico has 8 factories in India located at Pondicherry, Perundurai, Jalgaon, Guwahati, Baddi, Paonta Sahib and Sanand. The international consumer products portfolio contributes to about 23% of the Group’s revenue, with brands like Parachute, Saffola, Parachute Advansed, Mediker SafeLife, Just For Baby, HairCode, Fiancée, Caivil, Hercules, Black Chic, Code 10, IngMarico ,X-Men, Sedure, Thuan Phat and Isoplus.1

Plant Locations

Marico has 8 factories in India located at

  • Pondicherry
  • Perundurai
  • Kanjikode
  • Jalgaon
  • Paldhi
  • Dehradun
  • Baddi
  • Paonta Sahib.

In Bangladesh, Marico operates through Marico Bangladesh Limited, a wholly owned subsidiary. Its manufacturing facility is located at Shirirchala, in Dhaka Division.



  • Parachute Coconut Oil
  • Parachute Advansed
  • Parachute Advansed Body Lotion
  • Saffola
  • Hair & Care
  • Livon
  • Nihar Naturals
  • Mediker
  • Revive
  • Studio X
  • Kaya Youth
  • Parachute Advansed Coconut Creme Oil
  • Mediker Anti Lice Treatment
  • Veggie Clean
  • KeepSafe
  • Protect
  • Coco Soul
  • Saffola ImmuniVeda
  • Saffola Arogyam Chyawan Amrut Awaleha
  • Pure Sense
  • Saffola Honey
  • Coco Soul Beauty
  • True Roots
  • Saffola FITTIFY Gourmet
  • Set Wet


Company History

 Milestones In Marico's Journey
1971Harsh Mariwala, a young graduate, joins the family business
1974Harsh envisions a branded FMCC market for coconut and refined edible oils
1980Harsh discovers the ubiquitous Parachute blue bottle
19902nd April 1990 — Marico is born
1991Marico launches Hair & Care, non- sticky hair oil
1996Marico lists on the Indian Stock Exchanges
1999First overseas manufacturing facility in Bangladesh
2002Marico enters Skin Care solutions – Kaya is born
2006Nihar enters Marico’s fold
2006-07Marico enters Egypt and South Africa through acquisitions
2009Marico Bangladesh lists on Dhaka Stock Exchange
2010Marico introduces Saffola Breakfast
2011Marico enters Vietnam through acquisition of ICP
2012Marico acquires Livon & Set Wet
2013Kaya Skin Care demerged
2014Harsh steps down as MD and Saugata Gupta takes over
2017-18Investment in Startup Ecosystem - Beardo
2018-19Marico launched Saffola FITTIFY, Coco Soul, Kaya Youth O2
2020Acquisition of 100% stake in Beardo. Marico enters the Hygiene segment. Saffola Honey launched

Industry Overview

Fast-Moving Consumer Goods (FMCG) sector in India

India is the fastest-growing trillion-dollar economy in the world and the fifth-largest overall, with a nominal GDP of $2.94 Trillion. India has become the fifth-largest economy in 2019, overtaking the United Kingdom and France. Domestic consumption, which powers 60% of the GDP today, is expected to grow into a $6 Trillion by 2030.2

This consumption growth will be supported by a 1.4 Billion strong population that is younger than that of any other major economy. Household savings have historically been high as thrifty and cautious Indian families put away more than a fifth of their incomes for a rainy day. This buffer provides support to domestic consumption expenditure even through challenging cycles in economic activity.

Fast-moving consumer goods (FMCG) sector is the fourth largest sector in the Indian economy with Household and Personal Care accounting for 50% of FMCG sales in India. Growing awareness, easier access and changing lifestyles have the key growth drivers for the sector. The urban segment (accounts for a revenue share of around 55%) is the largest contributor to the overall revenue generated by the FMCG sector in India.

Rural consumption has also increased, led by a combination of increasing incomes and higher aspiration levels; there is an increased demand for branded products in rural India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50% of total rural s#nding. Being largely dependent on agriculture and allied activities, the factors affecting agricultural income like monsoon and minimum support prices (MSP) of crops are critical for the growth in rural consumption demand. Various government reforms like increasing minimum support prices (MSP) of crops and direct benefit transfer targeted towards transferring the governmental subsidies and payments directly into beneficiary bank accounts are helping plug the systemic leakages and increased farmer incomes. While demonetisation and GST negatively affected rural demand, FMCG companies have changed their distribution model and working on increasing their direct reach. Demand for quality goods and services have been going up in rural areas of India, on the back of improved distribution channels of manufacturing and FMCG companies. Companies have also started launching smaller SKUs or price packs, which not only reduce the immediate burden on customers, but also allow companies to expand their product and the customers from loose to branded products.

With the share of the unorganised market in the FMCG sector falling, the organised sector growth is expected to rise with increased level of brand consciousness, also augmented by the growth in modern retail. 100% Foreign Direct Investment (FDI) in food processing and single- brand retail and 51% in multi-brand retail has provided high visibility for FMCG brands in organised retail markets, bolstering consumer spending and encouraging more product launches.

It is estimated that a massive increase in internet penetration will lead to more than a billion internet users in India by 2030. Online connectivity, and the resultant access to information, is proving to be a key driver of differences in aspiration and the desire to spend and consumption, even among people at similar income levels. While general trade continues to be the largest sales channel for overall FMCG retail sales, growth in sales through modern trade and E-Commerce in particular, is significantly outpacing the growth of FMCG products in general trade. Amongst all the FMCG items, online grocery order leads the sales with 44% contribution, followed by personal care which accounts for 40% of such orders. Household care, comes third in the list, with a share of 13% of all online FMCG orders. As per Nielsen, while the E-Commerce FMCG market stands at around $1.2 Billion, which is 2% of the total FMCG market in India, metro cities account for 6% orders from the online channels of the FMCG total sales. Fast-moving consumer goods sales coming from the E-Commerce channel is expected to grow to $4 Billion with a CAGR of 44% by 2022. Continued demand for convenience in urban areas, the integration online and offline, the creation of new direct-to-consumer options and more technology, will all help reach new targets beyond the current profile of affluent families with children.

India is an annual population growth of 1.1% and is expected to emerge as the most populous country in the world by 2024. Nearly half of India's population is under the age of 25 and two-thirds are less than 35. According to Accenture, India is expected to have the world's largest workforce by 2027, with a billion people aged between 15 and 64. This indicates that the growth in non-discretionary consumer demand, like food, healthcare, household and personal care products, is likely to sustain in the long term. In addition, India is expected to witness strong growth in per capita income, leading to an increase in affluent population and rise in disposable income in general, which in turn should result in a rise in discretionary spending. As per a report published by the World Economic Forum in collaboration with Bain & Company, the vision for the future of consumption in India is anchored in the growth of the upper-middle income and high-income segments, which will grow from one in four households today, to one in two households by 2030. At the same time, India will also lift nearly 25 Million households out of poverty, to reduce the share of households below the poverty line to 5%, down from 15% today. Thus, India represents a relatively broad-based pattern of growth and benefit sharing, in contrast to the global scenario of increasing inequality, wherein the richest 10% of the is capturing an increasing share of national incomes and, consequently, wealth. Rising demand for premium products and faster growth in sales through trade are likely to bring incremental growth. Growing awareness, easier access, and changing lifestyles are the key growth drivers for the consumer market. Lastly, the focus on agriculture, MSMEs, education, healthcare, infrastructure and employment in the Union Budget and subsequent measures is expected to positively impact the FMCG sector. While the outbreak of COVID-19 has clouded the outlook in the near term in the wake of an adversely affected supply chain, change in consumer behavior and a much weakened macro-environment, the FMCG sector in India is likely to grow steadily owing to these structural drivers over the medium to long run.

Business Overview

Domestic Business: Marico India

Marico India, the domestic FMCG business, achieved a turnover of 655 Crores in FY20, down 2% over the last year. The underlying volume growth was a muted 1%, vastly affected by the consumption slowdown witnessed in the economy through the year, which was further exacerbated by supply chain disruptions from the lockdowns enforced in the month of March 2020 to contain the outbreak of COVID-19 in India. The 0#rating margin (before corporate allocations) for the India business was healthy at 22.0% in F Y 20 vs 20.2% in FY19. The improvement in profitability was led by gross margin tailwinds owing to a benign input cost environment

Coconut Oil (44% of India business)

Parachute's rigid portfolio (packs in blue bottles) had a flat FY20 in volume terms, amidst a slow consumption environment, a delay in connecting specific pricing interventions to the retail shelves due to older inventory in the channel at the end of HI FY2020 and severe lockdown- led disruptions in March 2020. The brand strengthened its leadership position with a gain of 268 bps in volume market share (MAT Mar'20). The non-focused Coconut Oil portfolio had a soft year amidst the tepid consumption environment. Overall, the volume market share of the Coconut Oil franchise (includes Nihar Naturals and Oil of Malabar) improved by 208 bps to 62% (Mar' 20 MAT).

Saffola: Super Premium Refined Edible Oils and Foods (23% of India business)

The Saffola refined edible oils franchise grew 9% in volume terms during F Y 20. While the brand growth in the traditional channel as well, higher salience in the new age channels of modern trade and E-Commerce enabled it to outperform through the year. The continued traction in Q4 was topped up by households stocking up on food and essential items in the early stages of the COVID-19 outbreak in March 2020. The brand has been backed by in-store promoter programmes and significant media investments with communication to build relevance and drive adoption among its target consumers by re-affirming its superior credentials. The renewed communication appears to have resonated well with the consumer, and the company will continue to implement differential packs/pricing/ channel strategies in an attempt to maintain the healthy growth trajectory for the brand. The brand gained 350 bps in volume market share brand to consolidate its volume market share at —76% in the Super Premium Refined Edible Oils category (MAT Mar'20). Rising health consciousness among consumers and higher incidence of in-home cooking also augur well for the franchise.

The Healthy Foods franchise value growth of 31% in F Y 20, led by consistent growth in the Saffola Oats franchise. The value market share of Saffola Masala Oats strengthened to —86% in the flavoured oats category (Mar'20 MAT), driven by consistent communication and distribution expansion. The brand continued to gain traction in modern trade and E-Commerce.

Value Added Hair Oils (24% of India business)

Value added hair oils registered a volume decline of 2% during the year, largely due to underperformance in the mid and premium segments, while category growth flattened in a subdued demand environment, especially in rural. The performance was also affected by primary sales plummeting in the last fortnight of March, with cessation of sales in the last 7 days of the year. However, offtake growth ahead of the category led the Company to consolidate its market leadership in the circa Crore with a volume share of -35% and value share of —26% MAT).

Premium Personal Care (5% of India business)

The Premium Personal Care portfolio, comprising Premium Hair Nourishment, Male Grooming and Premium Skin Care, had a lackluster year amidst a sharp dip in discretionary spending during the year.

Within Premium Hair Nourishment, Livon Serums posted high single-digit volume growth in FY20. While the growth in the bottle packs was led by new age channels of Modern Trade and Ecommerce, the 2.5 ml sachet pack (priced at C) played its role as the key trial pack by expanding the brand's reach in General Trade.

Foray into the Hygiene segment

Mediker Hand Sanitizer and Veggie Clean launched

With the rising consciousness among consumers about personal health and hygiene, the Company introduced Mediker Hand Sanitizer in April '20. The hand sanitizer packs have 70% v/v alcohol content that is sufficient to kill 99.9% germs without water, ensuring effective protection on-the-go from disease-causing germs. Marico has launched three SKUs— 90 ml, 200 ml, 500 ml and are ramping up distribution across all channels.

In April' 20, the Company also launched Veggie Clean, a first-of-its-kind fruit and vegetable cleaner, made with a unique mix of 100% safe ingredients that removes all the germs, bacteria, chemicals, waxes and soil present on the surface of fruits and vegetables without leaving any residue, aftertaste or smell. This solution does not contain any harmful preservative and is soap-free, chlorine-free as well as alcohol-free. Veggie Clean has been introduced in two SKI_Js - 200 ml and 400 ml, and has been made available across all channels.

International FMCG Business: Marico International

Marico International, the International FMCG business, posted a turnover of u, 660 Crore, a growth of 5% over the last year. The business reported constant currency growth of 5%. The revenue contribution from new products in FY20jumped to —5% in FY20 from -2% in F Y 19. The operating margin (before corporate allocations) for the International business expanded to 21.5% in FY20 from 20.1% in FY19. The margin improvement was led by input cost tailwinds in the Bangladesh business.



(49% of the International Business)

The business in Bangladesh grew by 12% in FY20 in constant currency terms, thereby delivering double-digit constant currency growth for the third year in a row. Parachute Coconut Oil posted 5% constant currency growth in FY20. With the category having matured in this market, the Company expect to grow this franchise in mid-single digits on a constant currency basis over the medium-term on the back of its dominant market share, distributive strength and consumption growth.

The non-Coconut oil in Bangladesh grew by 29% in FY20, in constant currency terms. Consequent to the consistent high double digit growth in Value Added Hair Oils, the Company retained market leadership in value terms on MAT basis and also attained leadership in volume terms on P3M (past 3 months) basis in Q4.

During the year, the Company also launched Parachute SkinPure Beauty Olive Oil. Made from the finest olives in Spain and enriched with Vitamin E & C, the product can be used for hair and skin nourishment.

The initial response to the recent launches - baby care range (Parachute Just for Baby), Male Grooming Range (Studio X) and Olive Oil (Parachute SkinPure), has been positive.

In Apr' 20, Marico Bangladesh launched Mediker SafeLife Hand Sanitizer and Hand Wash, bringing Mediker’s international expertise in care and protection to the country.

The non- Coconut Oil portfolio in Bangladesh constitutesover —30% of the total business in Bangladesh. The Company will leverage its strong distribution network and learnings from the India market to quickly scale up its new product introductions in Bangladesh. With this, the contribution of the non-coconut oil is likely to exceed 35% by F Y 22. The company remain confident of delivering double-digit constant currency growth in this geography over the medium term. The healthy macro indicators also provide the required thrust for growth.

South East Asia

(26% of the International Business)

The South East Asia business grew by 4% in FY20 in constant currency terms. The business witnessed limited impact in Q4 due to less stringent COVID-19-led restrictions in the region.

Vietnam posted a growth of 5% in constant currency terms as growth in the Home and Personal Care (HPC) segment moderated. In HI, the Company launched a new range - shampoo, shower gel and face wash, under the brand X-Men, aimed at converting the unisex users looking for functional benefits. The Foods managed to post decent growth.

To serve the pressing hygiene needs of its consumers, the Company launched X-Men Go Hand Sanitizer, a cleansing gel that gives 99% protection, in a convenient pack size for men to carry on the go. Launched in April, the product has been made available in both General and Modern Trade. The Company has initiated an aggressive cost management programme, which will enable resource generation for brand building. The company expect to deliver steady currency growth in this geography over the medium term. In F Y 21, the company expect normalcy to return faster compared to other regions due to well-implemented safety measures by the government.

Middle East and North Africa (MENA)

(12% of the International Business)

The MENA business declined by 18% in constant currency terms, further accentuated by supply chain disruptions in March 20 due to the COVID-19 outbreak. The recent crash in oil prices and volatile macro environment keeps it cautiously optimistic about the medium term outlook ofthese markets. The company remain cautious about Egypt at this stage and will be aggressive on cost management to give the business a fighting chance to survive and thrive.

South Africa

(7% of the International Business)

The South Africa business declined by 5% in constant currency terms, due to continued macro headwinds coupled with social distancing and other restrictions enforced to contain the outbreak of COVID-19 in the region during Q4 FY20. In Q4 FY20, the Company has recognised an impairment loss of Crore towards Goodwill arising out of South African Hair styling brand ISOPIus, which was acquired in 2017. The same is disclosed under 'Exceptional items' in the Consolidated Statement of Profit and Loss. The macros in the region continue to be weak. The company expect some revival in this business over the medium term on the back of a pipeline of new products.

New Country Development & Exports

(6% of the International Business)

With expansion in adjacent markets such as Nepal and Bhutan, exports to diaspora and other markets generated revenues of nearly IJS$ 14 Million in F Y 20. The business grew by 33% in constant currency terms in FY20. The Company remains positive on the future prospects of this business, as it incubates new geographies to expand its franchise. Early signs of easing of cross-border supply chain makes it confident of reviving growth in FY21.

Financial Highlights

In FY20, Marico revenue from operations of INR 7,315 Crores, which was marginally lower than the previous year. The underlying volume growth for the year was 2%. The business delivered an operating margin of 20.1% and INR 1,043 Crores, a growth of 13% over the last year on a comparable basis.

Marico India, the domestic FMCG business, achieved a turnover of INR 5,655 Crores in FY20, down 2% over the last year. The underlying volume growth was a muted 1%, vastly affected by the consumption slowdown witnessed in the economy through the year, which was further exacerbated by lockdowns enforced in the month of March 2020 to contain the outbreak of COVID-19 in India. The operating margin corporate allocations) for the India business was at 22%. The improvement in profitability was led by significant gross margin tailwinds, owing to a benign input cost environment.

During the year, Marico International, the International FMCG business, posted a turnover of INR 1,660 Crores, a growth of 5% over the last year. The business constant currency growth of 5%. The operating margin (before corporate allocations) for the International business expanded by 139 bps to 21.5%, led by gross margin expansion in the Bangladesh business.

Marico Consolidated December 2020 Net Sales at Rs 2,122.00 crore, up 16.34% Y-o-Y 3

January 27, 2021 Net Sales at Rs 2,122.00 crore in December 2020 up 16.34% from Rs. 1,824.00 crore in December 2019.

Quarterly Net Profit at Rs. 307.00 crore in December 2020 up 12.87% from Rs. 272.00 crore in December 2019.

EBITDA stands at Rs. 437.00 crore in December 2020 up 8.71% from Rs. 402.00 crore in December 2019.

Marico EPS has increased to Rs. 2.38 in December 2020 from Rs. 2.11 in December 2019.

Marico shares closed at 410.15 on January 25, 2021 (NSE) and has given 17.04% returns over the last 6 months and 21.20% over the last 12 months.

Recent developments

Marico eyes Rs 100 crore revenue from Saffola honey in FY22 4

January 29, 2021 Fast moving consumer goods (FMCG) company Marico has set a revenue target of Rs 100 crore in 2021-22 from its Saffola branded packaged honey.

"The brand (Saffola Honey) is expected to touch Rs 100 crores in revenues in FY22," Marico said in a BSE filing.

On January 28, Marico reported a 13.04 percent year-on-year increase in consolidated net profit to Rs 312 crore for the quarter ended December 31, 2020. The company's revenue from operations in Q3FY21 rose 16.33 percent YoY to Rs 2,122 crore.

According to a Mint report, Marico Chief Executive Officer Saugata Gupta said Saffola honey is "ramping up very well", ahead of the company's launch estimates.

"The company's aspiration is to touch the Rs 100 crore mark in revenues by next year, which will make it one of the fastest Rs 100 crore journey in the mid-sized foods category, considering that the company extended this brand nationally only in November-December 2020," Gupta said in an earnings call, as quoted by the paper.

"Looking at offtake trends, its growth was limited by supply-led capacity constraints, which the company plan to overcome in the next few quarters," he added.

Some of Marico's prominent brands also include Parachute, Mediker and Set Wet and Veggie Clean.


  1. ^ https://marico.com/india/about-us/overview
  2. ^ https://marico.com/investorspdf/Annual-Report-FY-2019-20.pdf
  3. ^ https://www.moneycontrol.com/news/business/earnings/marico-consolidated-december-2020-net-sales-at-rs-2122-00-crore-up-16-34-y-o-y-6404341.html
  4. ^ https://www.moneycontrol.com/news/business/marico-eyes-rs-100-crore-revenue-from-saffola-honey-in-fy22-report-6414921.html
Created by Asif Farooqui on 2021/02/16 18:39
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