Marico Limited · NSE:MARICO
Marico — Investor Presentation (October 2020)
63 slides from Marico's investor presentation, October 2020
Slide 1: Investor Presentation October 2020
INVESTOR PRESENTATION October 2020
Slide 2: Disclaimer
DISCLAIMER This investor presentation has been prepared by Marico Limited (“Marico”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not
Slide 3: Table of Contents
TABLE OF CONTENTS • Company Overview………………… 4 • Strategy Framework……………….. 13 • India Business…………………......... 16 • International Business……………... 29 • Key Areas of Transformation…........ 35 • Financial Highlights………………… 48 • Sustainability …………………......... 51 • Stock Information………………...... 58 • A
Slide 4: Company Overview
COMPANY OVERVIEW Investor Presentation | October 2020 4 < Previous | Next >
Slide 5: Marico at a Glance
MARICO AT A GLANCE One of India’s leading Consumer Products companies operating in the Beauty & Wellness space. 30 Years $ 6.4 bn. 23% Operating since 1990 Market Capitalisation as on 30th September, 2020** Total Shareholder Return CAGR since listing in 1996 13,935 INR 7,315 cr. INR 1,043 cr. ($ 1.0
Slide 6: Interesting Facts
INTERESTING FACTS Parachute World’s largest coconut oil brand ~2,400 >5,000 Population of towns Size of Company workforce largely covered by Marico’s distribution network 1 out of 10 Coconuts grown in India are used by Marico 58% 118+ million of members in Marketing, HR, Technology are women Househo
Slide 7: Milestones in Marico's Journey So Far
MILESTONES IN MARICO’S JOURNEY SO FAR Harsh Mariwala, a Harsh discovers the Marico launches First overseas Nihar enters young graduate, joins ubiquitous Parachute Hair & Care, non- manufacturing facility Marico’s fold the family business blue bottle sticky hair oil in Bangladesh 1971 1974 1980 1990
Slide 8: Geographical Presence
GEOGRAPHICAL PRESENCE Marico aspires to be a leading emerging market MNC with a leadership position in the categories of Leave-in Hair Nourishment, Foods, Skin Care and Male Grooming in a few chosen markets in Asia and Africa. South India Africa Middle South East & East Asia North Bangladesh Africa
Slide 9: Board of Directors
BOARD OF DIRECTORS Mr. Harsh Mariwala Mr. Saugata Gupta Mr. Ananth Narayanan Chairman & Non-Executive Director Managing Director & CEO Independent Director Mr. B. S. Nagesh Ms. Hema Ravichandar Mr. K.B.S. Anand Independent Director Independent Director Independent Director Mr. Nikhil Khattau Mr. Raj
Slide 10: Management Team
MANAGEMENT TEAM Mr. Saugata Gupta Mr. Amit Prakash Mr. Gaurav Mediratta Managing Director & CEO Chief Human Resources Chief Legal Officer Officer Mr. Jitendra Mahajan Mr. Koshy George Mr. Pawan Agrawal Chief Operating Officer – Chief Marketing Officer Chief Financial Officer Supply Chain & IT Mr. Sa
Slide 11: Core Values
CORE VALUES Our value system in 3 simple words – “Make A Difference” Boundarylessness Opportunity Innovation Transparency Consumer Bias For Excellence Global Seeking & Openness Centric Action Outlook Our values form the base of our unique culture and is the guiding force behind our actions Investor
Slide 12: Living Marico's Purpose
LIVING MARICO’S PURPOSE “To transform in a sustainable manner, the lives of those we touch, by nurturing and empowering them to maximise their true potential” CUSTOMERS SHAREHOLDERS SOCIETY MEMBERS BUSINESS ASSOCIATES Investor Presentation | October 2020 12 < Previous | Next >
Slide 13: Strategy Framework
STRATEGY FRAMEWORK Investor Presentation | October 2020 13 < Previous | Next >
Slide 14: Choice Making Framework - Where to Play
CHOICE MAKING FRAMEWORK - WHERE TO PLAY Per Capita Population Maturity Retail Income Emerging Economies with Large Young Population – Low Penetration in our chosen High Proportion of Traditional Lower but Fast Growing Per Demographic Dividend categories. Lower Intensity of Retail Capita Income Compe
Slide 15: Inorganic Growth Opportunities - Playbook
INORGANIC GROWTH OPPORTUNITIES - PLAYBOOK Key Attributes Select Hair Male Healthy Existing Categories Markets Markets in Nourishment Grooming Foods Markets Asia New Markets o Market Leader Brand o Strong Distribution Past Acquisitions/Strategic Investments 2006 2007-08 2010 2011 Existing Markets o H
Slide 16: India Business
INDIA BUSINESS Investor Presentation | October 2020 16 < Previous | Next >
Slide 17: India Business Overview
INDIA BUSINESS OVERVIEW India Business Revenue (in INR cr.) India Business EBITDA (in INR cr.) CAGR 9% CAGR 13% Share of Group Revenues 77% 2012 2020 2012 2020 MEDIUM TERM EXPECTATIONS Revenue Operating Volume Growth Growth Margins 13-15% 8-10% (depending on 20%+ levels inflation) Investor Presentat
Slide 18: Portfolio: Beauty, Wellness & Hygiene (1/2)
PORTFOLIO : BEAUTY, WELLNESS & HYGIENE (1/2) Coconut Oil Leave-in Hair Healthy Foods Nourishment • Parachute • Parachute • Saffola Advansed • Saffola Fittify • Nihar Naturals • Nihar Naturals Gourmet • Oil of Malabar • Hair & Care • Coco Soul • Livon • Saffola ImmuniVeda Investor Presentation | Octo
Slide 19: Portfolio: Beauty, Wellness & Hygiene (2/2)
PORTFOLIO : BEAUTY, WELLNESS & HYGIENE (2/2) Male Grooming Hygiene Others • Set Wet • Mediker • Kaya Youth • Parachute • Veggie Clean • Mediker Advanced Men • House Protect and • Revive • Beardo Travel Protect • KeepSafe Investor Presentation | October 2020 19 < Previous | Next >
Slide 20: Coconut Oil
COCONUT OIL Market : ~INR 51 bn* (~USD 724 mn) Only Player with Nation-wide Reach – Dominant Market Leader Parachute 55% Nihar 6% Oil of Malabar 1% Total Volume Share ~62% Parachute Nihar Oil of Malabar ~4% 30-35% ~44% Last 5 Year Volume CAGR Estimated % of the Market (in volumes) FY20 India in Para
Slide 21: Value Added Hair Oils (1/2)
VALUE ADDED HAIR OILS (1/2) Market : ~INR 82 bn (~USD 1.2 bn) 24% 27% 14% 3% 18% 14% Not present Light Hair Oils Amla Oils Value Added Cooling Oils Anti-Hair Fall Others Coconut Oils Likely Medium Term Volume Growth – Double Digit Likely to see sustained growth Market Leader in Hair Oils FY20 India
Slide 22: Value Added Hair Oils (2/2)
VALUE ADDED HAIR OILS (2/2) Belief in benefits of Leave-in v/s Rinse-off solutions Improves Reduces Reduces Softens Improves Thickness, Protein Breakage Hair Shine Strength And Loss Length Over the years, with economic growth, consumers have been upgrading Base Oils Better Sensorials Functional Bene
Slide 23: Healthy Foods - Saffola
HEALTHY FOODS - SAFFOLA Evolution from an edible oil brand to a leading healthy lifestyle brand o On the back of increasing relevance of healthy living and in-home consumption ~20% FY20 India o Extension of brand equity into Healthy Foods for breakfast, in-between meals, superfood nutrition, meal re
Slide 24: Premium Hair Nourishment
PREMIUM HAIR NOURISHMENT Market : ~INR 2.2 bn (~USD 31 mn) Likely Medium Term Value Growth: Mid-Teens o o Tail wind category with low penetration Focus on driving category growth through innovation and consumer engagement ~65% Volume Market Share ~2% Leader in Leave-in Hair Conditioners India Busine
Slide 25: Male Grooming
MALE GROOMING o Marico acquired Set Wet in May 2012 and Beardo in June 2020 o Tail wind category with low penetration o Caters to millennials – therefore huge growth potential Hair Gels/ Creams Deodorants Beardo Market: INR 3.4 bn (~USD 49 mn) Likely Medium Term Value Growth: Mid-Teens Medium Term S
Slide 26: Hygiene
HYGIENE Realigning the portfolio to capitalize on changing consumer trends and preferences Fresh foray into the Hygiene segment o o Multiple launches to cater to consumer demand through differentiated products Will continue to invest through innovation and brand building ~1-1.5% expected contributio
Slide 27: Strong Distribution Network
STRONG DISTRIBUTION NETWORK OVERALL REACH: 5.1 MILLION OUTLETS OUT OF 10.2 MILLION OUTLETS – HUGE HEADROOM FOR GROWTH Channel Split: Modern Trade (includes E-Commerce) has Urban – Rural Split : Rural sales up from 26% in FY10 to 31% in outpaced the other channels. FY20. 85% 74% 69% 71% 31% 26% 22% 7
Slide 28: Brands with a Purpose
BRANDS WITH A PURPOSE o Nihar Shanti Amla “Chhote Kadam Pragati Ke Aur” o Saffolalife “Chhote Kadam – Dil ke Bade Kaam ke” o Promoting healthy recipes by engaging with the consumer via “Fitfoodie.com” Investor Presentation | October 2020 28 < Previous | Next >
Slide 29: International Business
INTERNATIONAL BUSINESS Investor Presentation | October 2020 29 < Previous | Next >
Slide 30: Marico International
MARICO INTERNATIONAL Share of International Business Revenues (%) International Business Revenues (in INR cr.) 1,660 1,578 1,345 1,356 1,364 FY10 53% 33% 11% 3% 1,284 FY20 49% 12% 7% 26% 6% Bangladesh MENA South Africa South East Asia Others FY15 FY16 FY17 FY18 FY19 FY20 MEDIUM TERM EXPECTATIONS Sha
Slide 31: International Portfolio
INTERNATIONAL PORTFOLIO Bangladesh Vietnam Middle East South Africa Egypt 49% 22% 9% 7% 3% Categories : Coconut Oil, Categories: Male Categories : Coconut Oil, Categories : Hair Care, Categories : Male Hair Care, Skincare, Grooming and Styling, Hair Care Healthcare, Skincare Grooming and Styling Bab
Slide 32: International Portfolio
INTERNATIONAL PORTFOLIO Bangladesh Coconut Oil, Hair Care, Skincare, Babycare, Male Grooming and Styling, Edible Oils, Hygiene Vietnam Myanmar Male Grooming and Styling, Foods Hair Care and Styling, Male Grooming Investor Presentation | October 2020 32 < Previous | Next >
Slide 33: International Portfolio
INTERNATIONAL PORTFOLIO South Africa Hair Care, Healthcare, Skincare MENA Coconut Oil, Hair Care, Male Grooming and Styling Investor Presentation | October 2020 33 < Previous | Next >
Slide 34: Market-wise Focus Areas
MARKET-WISE FOCUS AREAS Bangladesh Vietnam Middle East South Africa Egypt 49% 22% 9% 7% 3% • Leverage distribution • Grow market in male • Gain back lost share in • Build Scale in South • Grow core market network shampoo/shower gels hair oils, creams/gels Africa • Establish Value Added Hair Oils • G
Slide 35: Key Areas of Transformation
KEY AREAS OF TRANSFORMATION Investor Presentation | October 2020 35 < Previous | Next >
Slide 36: Key Areas of Transformation
KEY AREAS OF TRANSFORMATION INNOVATION GO TO MARKET TALENT & CULTURE IT & ANALYTICS STRATEGY Investor Presentation | October 2020 36 < Previous | Next >
Slide 37: Innovation - Premiumise Within Core Hair Oils
INNOVATION – PREMIUMISE WITHIN CORE HAIR OILS Parachute Advansed Aloe Vera Enriched Coconut Hair Oil Hair & Care Dry Fruit Oil Investor Presentation | October 2020 37 < Previous | Next >
Slide 38: Innovation - Building Categories of the Future
INNOVATION – BUILDING CATEGORIES OF THE FUTURE Premium Healthy Foods Male Hygiene Personal Care Grooming Livon Saffola FITTIFY Set Wet Mediker Kaya Youth O2 Gourmet Beardo Veggie Clean Coco Soul, Travel Protect and Saffola Honey House Protect Saffola ImmuniVeda KeepSafe Investor Presentation | Octob
Slide 39: Innovation - Premium Hair Care
INNOVATION – PREMIUM HAIR CARE Livon Shake & Spray Serum | Livon Colour Protect Serum | Livon Serum for Dry & Unruly Hair Investor Presentation | October 2020 39 < Previous | Next >
Slide 40: Innovation - Premium Skin Care
INNOVATION – PREMIUM SKIN CARE Kaya Youth O2 Skin Care Range – Face Wash | Day Cream | Micellar Water | Face Wipes Investor Presentation | October 2020 40 < Previous | Next >
Slide 41: Innovation - Broaden and Scale-up of Healthy Foods Portfolio
INNOVATION – BROADEN AND SCALE-UP OF HEALTHY FOODS PORTFOLIO Green Coffee Virgin Coconut Oil (including Saffola Honey Kadha Mix Moringa Green Tea infused versions) Golden Turmeric Milk Mix Hi-Protein Meal Soups Peanut Coconut Butter Hi-Protein Meal Shakes Coconut Sugar Superfood Quinoa - – Poha and
Slide 42: Innovation - Extend into Complete Range in Male Grooming
INNOVATION – EXTEND INTO COMPLETE RANGE IN MALE GROOMING Set Wet Global Edition Set Wet Gels Perfume Sprays Set Wet Waxes Beardo Investor Presentation | October 2020 42 < Previous | Next >
Slide 43: Innovation - Hygiene
INNOVATION – HYGIENE Mediker Hand Sanitiser | Veggie Clean | House Protect and Travel Protect | KeepSafe Investor Presentation | October 2020 43 < Previous | Next >
Slide 44: Innovation - Diversify Play in Key International Markets
INNOVATION – DIVERSIFY PLAY IN KEY INTERNATIONAL MARKETS Parachute Advansed Petroleum Jelly in Bangladesh ‘Parachute Just for Baby’ Baby Skin Care range in Bangladesh ‘Parachute Naturale Shampoo’ range in Bangladesh Investor Presentation | October 2020 44 < Previous | Next >
Slide 45: Go-to-Market: Building Future-Ready Distribution
GO-TO-MARKET : BUILDING FUTURE-READY DISTRIBUTION Leverage IT & Analytics • PDAs, ISRO, RETINA New-Age & Specialty Channels • NAGTM – C&C, Foods • Specialist GT, Modern Trade, E-Commerce Distribution Expansion • Direct Reach & Wholesale Investor Presentation | October 2020 45 < Previous | Next >
Slide 46: Talent Value Proposition & Culture
TALENT VALUE PROPOSITION & CULTURE Early Empowerment Tapping global resources for Learning & Development Young Board & Reverse Mentoring Leveraging Network of Experts Seeding “Engine 2” Investor Presentation | October 2020 46 < Previous | Next >
Slide 47: IT & Analytics
IT & ANALYTICS Digitize Operations AUTOMATION LISTEN ANALYTICS INTEGRATED CONSUMER REACH End EXPERIENCE Consumers SELL ENGAGE Innovate Business INNOVATE Models Investor Presentation | October 2020 47 < Previous | Next >
Slide 48: Financial Highlights
FINANCIAL HIGHLIGHTS Investor Presentation | October 2020 48 < Previous | Next >
Slide 49: 5 Year Trends
5 YEAR TRENDS Revenues & EBITDA Margin PAT & PAT Margin 14.3% 20.1% 13.5% 12.6% 19.5% 12.9% 11.8% 18.0% 18.1% 17.5% 6,024 5,936 6,333 7,334 7,315 711 799 814 926 1,043 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Revenue (in INR cr.) EBITDA Margin (%) PAT (in INR cr.) PAT Margin (%) Net Worth a
Slide 50: Dividend Payout
DIVIDEND PAYOUT Focus on maximization of shareholder value Payout has been increasing over the years with higher cash generation FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 Dividend Payout Ratio 30% 70% 64% 78% 76% 96% Dividend pay-out shall remain at current levels, unless any organic/inorganic growt
Slide 51: Sustainability
SUSTAINABILITY Investor Presentation | October 2020 51 < Previous | Next >
Slide 52: Key Focus Areas and Targets
KEY FOCUS AREAS AND TARGETS RESPONSIBLE RESOURCE CIRCULAR ECONOMY CONSUMPTION • ‘Zero PVC' use in packaging by 2022 • 100% recyclable, reusable or compostable • Reduce energy intensity by 50% by 2022 from FY13 packaging portfolio by 2025 base year • 10% reduction in packaging intensity by 2025 from
Slide 53: Impact Till Date (1/4)
IMPACT TILL DATE (1/4) Marico’s environmental agenda is to achieve resource efficiencies and reduce the impact of our operations on the environment ENERGY EMISSIONS Achieved 32% reduction in 79% of total energy sourced We account Scope I, II and III Achieved 68% reduction in GHG energy intensity fro
Slide 54: Impact Till Date (2/4)
IMPACT TILL DATE (2/4) WATER SUSTAINABLE PACKAGING We have adopted the 3R approach – Reduce, Recycle and Replenish • About 95% of our packaging material is recyclable by weight as on FY20 Marico has undertaken • In FY20, we completed collection and safe disposal of 7,73,000 kg of In FY20, we created
Slide 55: Impact Till Date (3/4)
IMPACT TILL DATE (3/4) FARMERS MARICO INNOVATION FOUNDATION (MIF) Marico flagship program: About 21,000+ farmers KALPAVRIKSHA launched in enrolled under the program till MIF aims to nurture 2017 – has improved coconut MIF Scale Up program has date innovation in India across farmer’s yield by 15% com
Slide 56: Impact Till Date (4/4)
IMPACT TILL DATE (4/4) BRANDS WITH A PURPOSE EDUCATION “Saffolalife” continues with the vision of creating a ‘Heart Healthy “Nihar Mobile Pathshala” Nihar has enabled access to India’ houses quality education quality education for • The School Outreach Program – Safe and Nutritious Food at content t
Slide 57: External Ratings
EXTERNAL RATINGS Marico has been rated by MSCI ESG Ratings from 2015 onwards Our 2020 rating stands at ‘A’. A A A BBB BBB BB 2015 2016 2017 2018 2019 2020 Marico has responded to Marico Perundurai unit has Marico Head Office and CDP’s “Climate Change” been rated ‘PLATINUM’ in MARKS Office (R&D) & “W
Slide 58: Stock Information
STOCK INFORMATION Investor Presentation | October 2020 58 < Previous | Next >
Slide 59: Stock Information
STOCK INFORMATION Top Institutional Shareholders Stock Data Bloomberg Ticker MRCO IN EQUITY First State Investments Bajaj Allianz Life Insurance BSE Ticker 531642 Life Insurance Corporation of India Eastspring Investments NSE Ticker Marico Arisaig Partners ICICI Prudential Mutual Fund Market Capital
Slide 60: Awards & Accolades
AWARDS & ACCOLADES Investor Presentation | October 2020 60 < Previous | Next >
Slide 61: Awards & Accolades
AWARDS & ACCOLADES Honoured with 9 Marketing Awards Among India’s 5 Best IMC Juran Quality Medal at the first edition of Workplaces in FMCG Instituted by the IMC RBNQA exchange4media PLAY 2020 - Great Place to Work® Institute Trust won by Mr. Harsh (India) Mariwala Investor Presentation | October 20
Slide 62: Awards & Accolades
AWARDS & ACCOLADES Among India’s top 8 organizations Marico Perundurai unit rated Rockefeller foundation Award to FSSAI on Learning Health Index Survey - Marico is one of the Partners Platinum by Edcast Kalpavriksha initiative recognized as GreenCo Rating System by CII- Godrej Green Business Centre
Slide 63: Marico Limited Investor Relations
MARICO LIMITED CIN - L15140MH1988PLC049208 7th Floor, Grande Palladium 175, CST Road, Kalina, Santa Cruz (East) Mumbai- 400 098 www.marico.com More Websites: www.artofoiling.com www.saffolalife.com www.niharnaturals.com www.saffolafittify.com www.hairsutras.com www.fitfoodie.in www.parachuteadvansed