Marico Industries Ltd.

Incorporation year : 1988

Ownership group : Private (Indian)
Main activity : Vegetable oils

Much before Marico Industries was established, the Mariwala

family was already involved in the oil business. They controlled a
closely-held company called Bombay Oil Industries Ltd
(BOIL) which launched well-known brands such as Parachute
and Saffola. In Sep 1990, Marico Industries entered into an
agreement with Bombay Oil for the use of Parachute and Saffola
brands. Reports of June 2000 indicate that MIL would acquire
these brands from BOIL for Rs.30 crore and the acquisition
would be completed by the 1st quarter of 2000-01.

During 1992, the company launched Hair & Care, a non-sticky

hair oil. Parachute, as a brand, is nearly three decades old and
figures among the top 20 brands in the FMCG sector.

In 1998, MIL entered into a strategic alliance with Indo Nissin

Foods Ltd, a subsidiary of Nissin food Products Co Ltd of Japan,
for marketing and distribution of noodles under the brand
names of Top Ramen and Cup O'Noodles. It acquired
Mediker, the anti-lice shampoo brand from P&G India Ltd for
10 crore.

During 1999, MIL launched the following products: Parachute

Active Herbs, Revive Spray Starch, Revive Colourfix,
Saffola Salts, Saffola Atta and Saffola Corn + Kardi Oil
Blend. It acquired 'Oil of Malabar', the coconut oil brand from
West Coast India Ltd along with all associated business and
commercial rights.

Marico's plants are located at Jalgaon, Sewree and Saswadin

Maharashtra, at Ponda in Goa and at Palakkad in Kerala. The
Mariwala family has a 64% stake in the company.

During FY02, the volumes of the Company's Coconut Oil

Franchise (Parachute and Oil of Malabar (OOM)) were held
at FY01 level, despite a slump in the Coconut Oil (CNO) market.
Parachute continued to be the market leader in both, the
urban and rural markets. While the market grew at 1%, CNO
franchise recorded a growth of 4%
 Non-Fabric Care products (comprising coconut oils and
hair care products) recorded a volume growth of 6% for
FY02 over the previous year
 Fabric Care volumes rose by 18%
 Hair Oil franchise continued its good run and posted a
volume growth of 88% over FY01.
 Saffola franchise rose by 8% in volumes, while Sweekar
Sunflower Oil de-grew in volumes.
 The CNO franchise continued to be the market leader while
in the ROCP segment, held the No. 1 / No. 2 slots for most
part of FY02.

International Business:
On a consolidated basis, international business grew 29% over
the previous year. The operations of Marico Bangladesh
Limited (MBL), the wholly owned subsidiary of MIL, have now
fully stabilised. MBL has performed well both in terms of
turnover and profit, turnover of Rs. 246 million and 93% growth
with Profit after Tax of Rs.7.3 million.

 The Coconut Oil manufacturing unit, set up at

Pondicherry with capacity of 18000 MT at an estimated
capital cost of Rs. 120 million, commenced operations in
Mar 2002.
 There’s a manufacturing unit at Damon for manufacture of
Personal Care products including Mediker. The unit was
set up at a cost of about Rs. 10 million, and commenced
commercial production in March 2002.

News Abstracts

22-Jan-2003 Marico Q3 net up at Rs 12.25 cr:

Marico Industries has recorded a net profit of Rs.12.25 crore
for the third quarter ended Dec 2002 as compared to net
profit of Rs.11.06 crore in the year 2001.
 Total income for the quarter has increased to Rs.196.20
crore from Rs.176.51 crore.
 The consolidated net profit for the quarter has
increased to Rs.13.92 crore from Rs.12.16 crore in the
 same period in the year 2001.
 Total revenues for the period have increased to Rs.206.25
crore from Rs.183.65 crore.
 The hair oil franchise of the company grew at 21%
 Refined oil segment de-grew marginally while maintaining
market share at 12%.
 Saffola was impacted by reduced availability of safflower
while the sunflower oil segment de-grew causing a drop in
volumes.
 Contribution of new products to the total turnover rose
from 11% to 16%.
 For the nine-month period ended 31 Dec 2002, Marico
reported a 17 per cent increase in profit after tax at
Rs.40.4 crore on a turnover of Rs.574.81 crore.

21-Jan-2003 Marico launches Medikar Anti-lice oil:

Marico Industries has launched Mediker Anti-Lice Oil, a coconut
oil-based product which includes neem and camphor. Mediker
Anti-Lice Oil is available in two sizes priced Rs.9.60 plus local
taxes for 25 ml and Rs.18 plus local taxes for 50 ml.

19-Dec-2002 Marico delivers Saffola kardi oil at doorstep:

Shortage of the kardi crop has made Marico Industries offer a
'Saffola helpline' service to deliver the oil at the doorstep of its
consumers. By adopting a service-oriented approach to
distribute the brand, Marico is currently offering this doorstep
sales service in Mumbai and Delhi. At present Saffola reaches
out to 1.5 lakh outlets across the country.

17-Dec-2002 MIL to extend top brands to new consumer

segments:
Parachute, Shanti Amla and Mediker are the brands chosen
for the company's foray into new categories, including the skin
care market. Apart from Parachute, which already dominates the
coconut hair oil category, Shanti Amla has a 13 per cent
volume share and enjoys second position after Dabur Amla in
the amla segment. Mediker already has a monopoly in the anti-
lice segment.

09-Dec-2002 MIL sees some positive developments:

First, the recent increase in import tariff values on soya and
palm oil could provide players in the branded sunflower oil
business with a measure of relief from competition. Over 2001,
players in the branded edible oil market have been losing market
share to cheaper substitutes such as refined soya oil and
palmolein.

07-Dec-2002 'Meal Maker' acquisition helps Marico enter

soya food segment:
Marico Industries's foray into health foods segment with its
recent acquisition of the brand 'Meal Maker' is a natural follow
through from its existing portfolio of edible oil product offerings,
a senior company official stated.
.
P&G India has informed that effective 1 Dec 2002, the
agreement between them and Marico Industries for
distribution of Old Spice after Shave Lotion and Shaving
Cream will stand terminated.

28-Nov-2002 Marico Industries plans to set up chain of

skin clinics:
Marico Industries plans to set up a chain of skin clinics called
Kaya Skin Clinic. The first clinic will open in Mumbai by the end
of year 2002. The company also has plans to expand the chain
across the country.

14-Nov-2002 Marico's health platform: Just what the

doctor prescribed:
The objective behind the move is to leverage on the 'health'
platform. Marketing initiatives are directed towards the Saffola
range of brands including newly launched 'Saffola Nutriblend'
and 'Saffola Tastiblend'

Other news clippings:

22-Nov-2002 Marico plans foray into beauty salons
01-Nov-2002 Marico and Godrej stay EVA-green in Q2
18-Oct-2002 Marico Q2 net profit up 17 per cent at Rs.13
Crore
18-Oct-2002 Marico net rises 19% as new products boost
turnover
14-Oct-2002 Marico readies its Mediker Oil for a
nationwide trip
11-Oct-2002 Block deals in Marico
04-Oct-2002 Indo-Nissin, Marico end marketing alliance
03-Sep-2002 Marico to develop palm application for sales
and distribution
01-Sep-2002 MRTPC rejects 'Sundrop' plea against Marico
31-Aug-2002 Marico to cut exposure in Saffola, focus on
non-oil health food