Marico Explained

Marico
Type:	Public
Location:	Santacruz, Mumbai, Maharashtra, India
Area Served:	Worldwide
Key People:	Harsh Mariwala ^[1] Saugata Gupta ^[2]
Industry:	Consumer goods
Revenue:	(FY24)
Operating Income:	(FY24)
Net Income:	(FY24)^[3]
Assets:	(2024)
Equity:	(2024)^[4]
Num Employees:	1,631 (2020)
Founder:	Harsh Mariwala

Marico Limited is an Indian multinational Consumer goods Company^[5] providing consumer products and services in the areas of health, beauty and wellness. With its headquarters in Mumbai, Marico is present in over 25 countries across Asia and Africa. It owns brands in categories of hair care, skin care, edible oils, health foods, male grooming, and fabric care.^[6]

As of 2019–2020, the company generated a turnover of ₹7,315 crores. Marico has 8 factories in India located at Puducherry, Perundurai, Kanjikode, Jalgaon, Paldhi, Dehradun, Baddi and Paonta Sahib.

Leadership

Harsh Mariwala is the chairman and Saugata Gupta assumed the role of the managing director in March 2014 and is currently the MD and CEO of this organisation.^{[7] [8]}

History

Marico Limited was established on 13 October 1988 under the name of Marico Foods Limited. Later, in 1989 the name of the company was changed from Marico Foods Limited to Marico Industries Limited.^[9] The first International office for Marico was set up in Dubai in year 1992. Marico was first listed on the Indian stock exchange in 1996.^[10]

Timeline

• 1974 – Harsh Mariwala set up a branded national distribution network for Parachute.
• 1990 – Marico was established in India.
• 1991 – Marico launched Hair & Care, a non-sticky hair oil. Sweekar sunflower oil went national.
• 1992 to 94 – Marico established its first overseas office in Dubai.
• 1994 – Revive cold water starch is marketed.
• 1996 – Marico is listed on the Indian Stock Exchanges.
• 1999 – The company expanded with its first overseas manufacturing facility in Bangladesh. Marico acquired Mediker in the same year.
• 2003 – Marico Innovation Foundation, responsible for executing the Corporate Social Responsibility of Marico was formed. In the same year Marico set up copra collection centres to procure directly from farmers increasing their margins.
• 2006 – Nihar entered the Marico fold.
• 2006-7 – Marico acquired Fiancée and Hair Code in Egypt and Caivil, Black Chic and Hercules in South Africa.
• 2009 – Marico made a public offering of equity in Bangladesh; a first for one of its overseas subsidiaries.
• 2010 – Marico launched Saffola breakfast, Masala Oats in India.
• 2011 – Parachute Advanced entered the skin-care category with the launch of Parachute Advanced Body Lotion (PABL), another innovation by Marico. The year also marks the launch of Parachute Gold hair cream in the Middle East market, which was targeted at women. Marico acquired a male grooming, skin care and food portfolio in Vietnam the same year.
• 2012 – India's Gen Next got styled by Marico as it launched its male grooming brand, SetWet.^[11]
• 2015 – Marico's Market Cap toped ₹25,000 crore.
• 2017– Marico acquired South African hair styling business Isoplus;^[12] launched Saffola Active^[11] Slimming Nutri-shake (marking entry into nutraceuticals category) and acquires a 45 percent stake in Zed Lifestyle (Beardo)^[13]
• 2018 – Marico invested in Revolutionary Fitness (Revofit);^[14] launched a new brand – True Roots^[15] that delays hair greying and launched its first digital exclusive brand – Studio X;^[16] launched Saffola Fittify.^[17]
• 2019 – Marico announced association with Kaya to create a skincare sub-brand, Kaya Youth.^[18]

Brands

The organisation holds a number of household brands such as Parachute, Parachute Advanced, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet, Mediker and Revive. In the international market, Marico is represented by brands like Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men and Thuan Phat.

• Male grooming – Set Wet, Beardo, Parachute Advansed Men Aftershower Hair Cream^[8]
• Hair Care – Parachute, Parachute Advansed, Nihar Naturals, Nihar Naturals Uttam, Hair & Care Fruit Oils, Mediker, Livon
• Edible Oils – Saffola
• Skin Care – Parachute Advansed Body Lotion
• Fabric Care – Revive
• Healthy Foods – Saffola Masala Oats & Saffola Fittify

Parachute

See main article: Parachute (brand). Parachute is the flagship brand of Marico which consists of edible grade coconut oil. Marico manufactures and markets its coconut based hair oils under its brand – Parachute "Advanced" and a series of extensions thereof.^[19]

Others

Saffola is essentially blended refined edible oil. It is marketed under the names of New Saffola, Tasty and Active. All of them contain blended vegetable oils in various ratios. The main type of oils which are blended include rice bran oil, Kardi oil or safflower oil, corn oil and soya oil.

Marico has a significant presence in Bangladesh, South East Asia, Middle East, Egypt and South Africa. In Bangladesh, Marico operates through Marico Bangladesh Limited, a wholly owned subsidiary. Its manufacturing facility is located at Shirirchala, in Dhaka Division.

Mineral oil in hair oil

Parachute "Advanced" hair oils contain around 50% (v/v) to 80% (v/v) mineral oil, along with coconut oil. Advanced Aloe Vera Enriched Coconut Hair Oil contains: Coconut oil (50% v/v), Mineral l (49.6% v/v), BHT, Aloe Vera extract & Perfume.

Mineral oil is known to cause skin cancer.^[20] Even though highly refined oils (classified as Group 3) are not suspected to be carcinogenic, available information is not sufficient to classify them as harmless.^[21]

Shareholding Pattern

Shareholding pattern^[22] !Shareholders (as on 30 June 2024)!Shareholding

Promoter and promoter group	59.28%
Total Institutions	35.71%
Total Non Institutions	5.01%
Total	100.0%

Marketing

NRI in the Middle East had been smuggling Parachute oil with them for their daily use when export of the oil was restricted prior to the 1991 economic liberalisation. Marico decided to try to sell products in that market after liberalisation, but found out that the Arab customers did not like the scent of coconut, wanted a less sticky hair product, and needed a product to counteract the high level of chlorination in their water. When Marico reformulated its product, its market share in the Middle East grew from 2% in 2002 to more than 20% by 2008.^[23]

Notes and References

1. Web site: Harsh Mariwala, Marico. Outlook India. 17 May 2018.
2. News: Harsh Mariwala steps down as Marico managing director . 28 August 2016. The Economic Times. 25 March 2014. Bhushan. Ratna. Malviya. Sagar.
3. News: Sreedhar . Vidya . Marico Q4 Results: Cons PAT rises 20% YoY to Rs 302 crore, sales growth muted . 27 June 2023 . The Economic Times . 5 May 2023.
4. Web site: Marico Ltd. Financial Statements . moneycontrol.com.
5. News: 5 big data analytics stories from India . . . September 2014 . 12.
6. News: Jha . Sneha . How Marico's digital crusader Mukesh Kripalani is fueling growth with digital innovation . . 28 August 2017.
7. News: Agarwal . Sapna . Marico CEO Saugata Gupta takes over MD role . . 25 March 2014.
8. Web site: 2020 . Annual Report . marico.com .
9. News: Marico Ltd.. Business Standard India. 2021-06-07.
10. Web site: Marico Limited. 2021-06-07. marico.com.
11. News: Malviya . Sagar . Marico enters soup segment, plans healthy snacks too . . 20 November 2017.
12. News: Chatterjee . Purvita . Marico acquires South African hairstyling brand Isoplus for Rs 36 cr . . 11 January 2018.
13. News: Datta . Aveek . Srivastava . Samar . Marico and Beardo to style beards together . . 18 March 2017.
14. News: Marico to invest in health startup . The Times of India. 18 April 2018.
15. News: Marico newest brand 'True Roots' delays hair greying from the roots . Adgully . 25 September 2018.
16. News: Marcio plans online-only brands . . 13 December 2017.
17. News: Malviya . Sagar . No fear of failure: Marico again sights health & wellness . . 24 December 2018.
18. News: Malviya . Sagar . Marico to launch Kaya Youth . . 8 February 2019.
19. News: Kumar . Abhineet . The game changes for Marico . 17 March 2021 . Business Standard India . 28 May 2013.
20. Cancer from mineral oil. . 1630563 . 5354827. 4. 5681 . 1969. 443–4. 10.1136/bmj.4.5681.443.
21. Web site: Agents Classified by the IARC Monographs, Volumes 1–102 . International Agency for Research on Cancer . International Agency for Research on Cancer . 17 June 2011 . . Lyon, France . 3, 19 . 11 November 2011 . dead . https://web.archive.org/web/20111025122327/http://monographs.iarc.fr/ENG/Classification/ClassificationsGroupOrder.pdf . 25 October 2011.
22. Web site: Marico Ltd. Shareholding Pattern. www.screener.in.
23. Book: Kumar, Nirmalya . India's Global Powerhouses . Nirmalya Kumar . 2009 . . 978-1-4221-4762-7 . 136–8 . India's Global Powerhouses .