Marico: Innovation, Brands & Leadership

Marico Limited is one of India’s leading consumer goods companies operating in health, beauty and wellness space. Marico is present in over 25 countries across emerging markets of Asia and Africa, having its headquarters in Mumbai. It nurtures leading brands across categories of hair care, skin care, edible oils, healthy foods, hygiene, male grooming, and fabric care.

Mr Harsh Mariwala joined the family business “Bombay Oil Industries” in 1971. He envisioned brands in FMCG market for coconut and edible refined oil in small consumer packs. Later in 1974, he set up a national distribution network for parachute. The consumer friendly blue bottle of Parachute is an innovation in the hair oil space.

(A) Product Portfolio of Marico

The Company divides its product portfolio in three categories:

product portfolio of marico ltd with detailed research report

Many products & brands of Marico stand as market leaders in their respective category.

(B) Market Share of Marico

analysis of products portfolio of marico ltd with details of market share
  • Market share in coconut oils including Parachute, Nihar Naturals and Oil of Malabar grew well over the years. Parachute coconut oil successfully maintained its leadership position in market.
  • VAHO (Parachute Advanced, Nihar Naturals, Shanti Amla and Hair & Care) reflected increase in volume market share. This is because of introduction of various innovative product variants under existing brands.
  • Saffola edible oils also leads the market in premium refined oil category inspite of tough competition in the category.
  • Livon comes under the category of premium personal care range. The market share of livon brand decreased. This id because of competition from various foreign brands in the category.
  • From company’s male grooming segment, Set Wet gels increased market share over the years.

(C) Product wise revenue share

portfolio analysis of marico ltd with revenue segmentation

(D) Revenue & PAT Growth of Marico

(i) Revenue growth of Marico Ltd over last 10 years:

net sales growth of marico ltd over last 10 years

(ii) Earning growth of Marico Ltd over last 10 years:

Earnings growth of marico ltd over last 10 years

Revenue of Marico grew at a CAGR of 11% over last 10 years. On the other hand, PAT grew at a CAGR of 16%. Thus, the company resulted in value addition for the stakeholders.

(E) Brands under Marico

Marico offers vast range of products in the category of Beauty, wellness and Hygiene under various owned as well as acquired brands.

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. 

(F) Market Leaders

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(i) The Best Coconut Oil

Parachute is the flagship brand of the company contributing 44% of the total revenue in the Indian business. Its performance is vital to Marico. Parachute was originally conceived in the family run business of Mariwala’s at Bombay Oil Industries. It was sold in huge tin cans of 15 litres each, mostly through wholesalers.

Later, Mr. Harsh Mariwala (Founder & Chairman of Marico) charted a plan to introduce Parachute in cheaper and more consumer friendly plastic bottles as well. As a result the Brand strengthened its leadership position with a gain of 2.68% in volume Market share in FY20.

Now, the volume market share of parachute in rural is 47% and in urban is 61%. The company is trying to improve the market share in rural area also.

Parachte is a Marico Bangladesh’s flagship brand and is a market leader in the country. The company is also a dominant player in Value Added Hair Oils (VAHO) space with brands such as Parachute Advansed Beliphool, Nihar Naturals Shanti Badam Amla & Parachute Advansed Extra Care.

(ii) The Saffola Family (Edible oils and Food)

(a) Power of Saffola refined oil

Like Parachute, Saffola is a legacy brand. At the time when it was introduced back in 60’s, just like Parachute, it was mostly sold in large tin cans. Little attention was paid to packaging or positioning. After that in the 90’s, Saffola began to establish itself as a serious player. The brand positioned itself as a ‘Life Insurance’ for heart patients. It came up with this new tagline & fancy packaging.

Saffola was able to sell itself as a premium brand for a healthy heart. Consequently, Marico enjoys strong brand equity with Saffola. Saffola oil contributes 23% to the revenues generated from India business. Marico maintained market leadership of its Saffola brand in the super premium refined edible oil segment, with a market share of 73%. Above all, the brand now is shifting to communicate a much broader value proposition that Saffola oil helps you maintain a healthy lifestyle.

Saffola sells its refined oil under 4 different sub-brands: Active, Tasty, Gold and Total.

saffola brand by marico hold number 1 position in India in premium refined oils category

(b) Saffola Foods

In foods, Saffola provides Saffola Oats, Saffola Masala Oats and Saffola salt.

Marico's brand saffola masala oats hold dominating position in indian breakfast industry segment

It maintains a strong market position in the oats (breakfast cereal) segment with 29% market share and market leadership in masala oats (with 72% market share) with double digit growth over past 5 years.

Value added products offering by Marico Ltd

Saffola Salt Plus offers less sodium making it an healthier alternative to regular table salt.

(c) Saffola Immuniveda

Marico forayed into the Ayurvedic segment with Saffola ImmuniVeda Kadha Mix and Saffola ImmuniVeda Golden Turmeric Milk Mix. These form immunity boosting offerings as a necessity for current times.

(d) Saffola FITTIFY Gourmet

In this range Saffola Provides

  1. Hi-Protein Slim Meal Shake
  2. Hi-Protein Meal Soup
  3. Green Coffee

(e) Saffola Arogyam Chyawan Amrut Awaleha

product expansion by marico ltd under saffola brand

(G) Other Value Added Products

Parachute Advansed Range by Marico

Parachute Advansed Men

product portfolio of marico ltd

Launched in 2017, Parachute Advansed Men is the second pillar of the male grooming portfolio in India.

Parachute Advansed Scalp Therapie

product portfolio analysis of marico ltd

Parachute Advansed Coconut Creme Oil

Hair & Care

Hair & Care is youthful and contemporary brand. Moreover, it is an addition to VAHO segments of the company. With this, Marico focused on young girls hair care range.

Coco Soul

products portfolio analysis of marico ltd

In a bid to strengthen its premium product portfolio, Marico Ltd. launched a new brand, Coco Soul. ​Coco Soul Virgin Coconut oil (VCNO) is 100% pure and natural with a rich nutrient profile.

Revive

analysis of product portfolio of marico ltd

Revive was launched in 1993 and is another Marico product that created a market where none existed. The brand is available as Revive Liquid and Revive Powder. Revive Powder gave consumers the convenience of an instant cold water starch at home. After that in 2007, Revive Liquid launched, which, unlike traditional powders, leaves no patches on colored clothes.

True Roots

analysis of product portfolio of marico ltd under its brand True Roots

True Roots Botanical Hair Tonic, is a first-of-its kind innovation in hair care.

Keep Safe

analysis of product portfolio of marico ltd under its brand Keep Safe

Marico introduced an intimate hygiene products for easy sanitization of everything you get in contact with.

Veggie Clean

analysis of product portfolio of marico ltd under its brand Veggie Clean

Travel Protect – Instant Surface Disinfectants

analysis of product portfolio of marico ltd under its brand Travel Protect

(H) In organic growth strategy of Marico

Other than owned brands, Marico acquired various other brands in order to reduce competition and to increase the market presence of the company.

marico followed strategy of acquired brands for market expansion

(i) Nihar Naturals

Nihar Naturals is an acquired brand of Marico from Hindustan Lever. It entered the Marico business in 2006. Its portfolio includes Nihar Naturals Coconut Hair Oil and Nihar Naturals Shanti Badam Amla Hair Oil.

Nihar Naturals Shanti Amla is leading among sub – brands in value added hair oil category.

(ii) Nihar Naturals Coconut oil

analysis of product portfolio of marico ltd under its acquired brand nihar naturals

A 100% pure coconut oil from the house of Nihar, available in a modern packaging that keeps it pure till the last drop.

(iii) Mediker

In the year 1999 Marico acquired Mediker from Procter & Gamble. Today Mediker is a household name that the nation trusts.

analysis of product portfolio of marico ltd under its acquired brand Mediker

As hand hygiene became more critical than ever before. Marico also forayed into the hand sanitizer category under its long-standing brand, Mediker.

(iv) Set Wet

Marico acquired Set Wet from a British consumer goods company Reckitt Benckiser in 2012. After that Marico re-launched the brand in 2014 with the core offering of gels.

analysis of product portfolio of marico ltd under its acquired brand Set Wet

Set Wet, a male grooming masterbrand, always played to win.  Set Wet plays a key role by standing by the man of today, showcasing the very best of him to boost his confidence and self-esteem. 

Under Set Wet brand Marico also included Set Wet Deo, Set Wet wax and Set Wet gel.

Livon

analysis of product portfolio of marico ltd under its acquired brand Livon

In 2012 Marico acquired Livon which is a hair lotion brand from Reckitt Benckiser to make an addition in youth portfolio. The Livon brand includes 2 offerings – Livon Serum & Hair Gain Tonic.

(I) International Business Share

Marico has strong presence in various international markets. International Business of Marico Contributes around 23% of total revenue of the company. The revenue under international business diversifies as:

International market holding of Marico Ltd

(J) Some Acquisitions in International Market

(i) Bangladesh

Hair code

HairCode is the leading Hair Dye in Bangladesh.

(ii) Egypt

Fiancee Gold

Fiancée Gold oil is a great solution for weak, dry or damaged hair

Hair Code

Hair Code is a leading hair care brand in the men’s styling category that was launched in the mid 1990s and was a pioneer in the Egyptian hair care market. It now exports its products to other countries in the region (Morocco and Pakistan).

HairCode has products that span across 3 segments – gels, creams and cream-gels. 

Fiancee

Fiancée is a styling brand in the men’s hair care products category in Egypt spanning hair gels, hair creams and hair cream-gels. The brand is also considered a pioneer in hair cream gels, and commands a dominant share in the sub category.

(iii) Malaysia

Marico entered Malaysia’s hair styling market in January 2010, with the acquisition of the Code 10 brand. Today the brand is amongst the market leaders in the male grooming and hair styling category.

(iv) South Africa

In 2007-08, the company entered the South African market by acquiring brands like Caivil, Black Chic, Just for Kids and Hercules. Today, Just for Kids has become a market leader in its segment.

(v) Vietnam

X-Men

X-Men is a range of personal care products for men. Launched in 2003, X-Men successfully paved the way for male grooming market in Vietnam with its breakthrough perfumed men’s shampoo and shower gel. X-Men is currently the leading brand in men’s grooming products, providing high quality products in hair care, body wash, deodorants & hair styling. 

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References:  Annual Reports, News Publications, Investor Presentations, Corporate Announcements, Management Discussions, Analyst Meets & Management Interviews, Industry’s Publications. 

Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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