MARICO

Company Overview

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Marico

INTRODUCTION
Marico is one the leading Consumer Packaged Goods Company in India,
incepted in the year 1987, providing products and services in the areas of
health and beauty. The company has created one of biggest brands in India.
Today, 1 out of 3 Indians uses a Marico product. Every month over 70 million
packs from Marico reach approximately 130 million consumers in about 23
million households through a widespread distribution network of more than
2.5 Million outlets. Marico is present in more than 25 countries across Asia and
the African continent.
Tagline- Make a Difference
Values: Innovation, Transparency & openness, Consumer centric, Bias for
action. Excellence, Global outlook, Boundarylessness & Opportunity seeking

COMPANY INFORMATION
Founded in:

1987

Head Quarters:

Bandra, Mumbai

Leadership:

Saugata Gupta (MD & CEO) , Harsh Mariwala (Chairman)

Industry:

Consumer goods- health & beauty care

FINANCIAL STATISTICS

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KEY MANUFACTURING FACILITIES

Goa, Kanjikode, Jalgaon, Pondicherry, Dehradun, Baddi, Paonta Sahib and
Daman

PRODUCTS
Marico operates under 3 divisions:-

The Consumer Products Group (CPB)

The International Business Group
Kaya Skin Clinic

Marico offers its products and services under the following three brands:
Indian Brands:
Parachute coconut oil, parachute advanced body lotion, saffola (total,
fruit & nuts oats), hair & care, nihar, uttam, nihar naturals, livon, set
wet, zatak, mediker, revive, manjal
International Brands:
Parachute coconut oil, parachute advansed, parachute gold, parachute
secrets, parachute therapie, hair code, code 10, xmen / l'ovite / thuan
phat, fiancee, caivil, hercules, black chic, parachute extensions, baby oil
Kaya Skin Clinic:
Kaya Skin Clinic has a number of services and solutions for Skin Beauty,
Skin Concerns, Laser Hair Reduction and Anti-Ageing.
The product range has over 40 items for skin, hair & body for both
women and men.

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SUPPLY CHAIN STRATEGY

The strategic goal of Marico is to enhance long-term value of the
company brands by achieving excellence in distribution performance.
Also to sustain customer service, it focuses on scaling up supply chain
operations.
In the early years, Marico sourced its copra from terminal markets of
Kerala from agents and unions.
There was the transporter, who doubled up as trading facilitator; traders
undertook fumigation, drying and sorting; a workers' union also sorted;
another union filled copra into sacks, and stitched and loaded them; and
yet another union stacked the sacks in trucks.
All these activities cost around Rs 500 a tonne and gunny bags cost
another Rs 300 per tonne. Knowing that sourcing from terminal
markets couldn't go on, Marico diversified into buying directly from
individual traders, who moved truckloads of copra directly to its factory.
Marico started developing a sourcing base in Tamil Nadu to de-risk itself
from Kerala. Today, over 50% of copra procurement by Marico is
through its centres; the rest comes from normal trade.
Currently Marico sells over 150 SKUs through 3500 distributors to 2.5
million retail outlets. Thus it is critical for the company to have an
efficient supply chain management. With the increase in competition &
product mix, the company faced tremendous challenge in maintaining
the same service levels which resulted in stock out, rising inventory,
inaccurate forecast and delays in response to market requirement
causing dissatisfied customers.
To overcome this problem the company implemented mySAP SCM
across all its locations. It resulted in reduced forecast cycle from 30 days
to 15 days, decreased stock outs, reduced lost sales.

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The company also implemented VMI (vendor managed inventory) which

helps in linking the distributors to companies system thus further
reducing the forecasting cycle to 10 days.

Earlier, Marico would

buy only copra coconuts
sun-dried by its
vendors. This migration
from copra to coconut
is significant

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Marico

The Supply Chain Management of Marico is shown in the diagram below.

MARKETING
Introduction of more brands and tried to increase more reach
Extensive advertising, Innovation promotion schemes
Widespread distribution network of more than 2.5 million outlets in
India

RECENT NEWS
Marico is now present in categories ranging from health food to male
grooming products and hair oil.
In less than two years, Parachute Advansed has become the third largest
player in the segment with over 7 per cent share, after Hindustan
Unilever's Vaseline and Ponds.
With the acquisition of the personal-care portfolio from its owner,
Reckitt Benckiser, last year for about Rs 700 crore, it got into
competitive categories such as deodorants (Zatak), hair gel (Setwet) and
hair serum (Livon).
Marico has developed Nihar into a Rs 500- crore brand in terms of
turnover from Rs 120 crore at the time of acquisition with HUL.

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Marico may now launch only one product a year and grow it to a
respectable size before moving on to the next product.
References:
http://articles.economictimes.indiatimes.com/2013-1126/news/44486941_1_saugata-gupta-fmcg-major-marico-supply-chain

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