marico investor presentation_fy13

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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