Slide 1: Marico: make a difference, June 2014
mMaricoO make a difference June 2014
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: Marico: Snapshot
Marico : Snapshot Beauty & Wellness Solutions Hair Care, Health Care, Skin Care, Male Grooming A leading Indian MNC Group INR USD Market Capitalization 14,000 Cr 2.4 Billion Turnover FY 14 4,687 Cr 781 Million Profit FY 14 485 Cr 81 Million Turnover from overseas 25% Sustained Profitable Growth Turn
Slide 4: Portfolio: Beauty & Wellness
Portfolio : Beauty & Wellness Hair Care Hair Oils : Pre/Post Wash Hair Colour Healthcare Healthy refined edible oils Functional Foods Male grooming/ styling Deodorants Hair Creams/Gels/Wax Skincare Body Lotion Cosmetics 3
Slide 5: Category Choice Making Framework
Category Choice Making Framework • Enter Categories/Segments with ‘Right to Win’ – Strong Brand, shared channel, shared consumer and shared supply chain • Developing & Emerging markets of Asia and Africa • Underpenetrated categories with potential to grow – Changing consumer habits or affluence • Wi
Slide 6: Focus on Growth
Focus on Growth • Prioritize volume growth (consumer franchise expansion) over short term profit – Emerging markets with low/moderate penetration – Maintain unit gross margin within a band • Re-invest profits to reinforce established brands and build new growth engines for the future – Prototyping :
Slide 7: Inorganic Growth
Inorganic Growth • Focused on hair care, skin care and health care in India – International : primarily hair care, skin care and male grooming • Internationally focused on developing markets in Asia and Africa • Provides opportunity to enter a new market – New category in a core market – Achieve sca
Slide 8: Market Leadership: Key to Category Choice
Market Leadership: Key to Category Choice Penetr Indicative Market Brand Category Rank ation Share (%) # Level Parachute/Nihar Coconut Oil (India) ~ 56% 1 High Parachute Coconut Oil (Bangladesh) ~ 84% 1 High Super Premium Refined Edible Saffola ~ 55% 1 Low Oils Saffola Oats ~ 14% 2 Low Parachute Jas
Slide 9: Coconut Oil
Coconut Oil The only Company with a national presence in INR 28 bn (~USD 467 mio) branded CNO market Volume Market Share Parachute 45% Market Size Nihar 9% Oil of Malabar 2% Branded ~ INR 28 bn (~USD 467 mio) Total 56% Loose ~ INR 8 bn (~USD 133 mio) 30-35% market (by volume) estimated to be in loos
Slide 10: Hair Oils
Hair Oils Value Added Hair Oils Market : INR 45 bn (~USD 818 mio) Value Added Light Hair Oils Amla Oils Cooling Oils Anti-Hair Fall Others Coconut Oils 24% 23% 18% 10% 7% 18% Category Play : Significant participation in most key sub-segments • Marico’s Volume Market Share in Hair Oil Market ~ 28% Li
Slide 11: Hair Oiling Category
Hair Oiling Category • Likely to see sustained growth – Category growth rate in last 5 years : 17-18% • Belief in benefits of leave-in conditioner (oil) versus rinse off • Research to support benefits of hair oiling – Reduces breakage – Stress management – Reduces protein loss – Softens hair – Impro
Slide 12: Male Grooming
Male Grooming • Marico acquired SetWet & Zatak in May 2012 • Tail wind categories with low penetration • Synergies with existing business – Leverage widespread Distribution network • Gain access to cosmetic/chemist outlets Hair Gels/Creams Rs.200 Cr (USD 35 mn) • Deo market expected to consolidate i
Slide 13: Saffola
Saffola Evolution from an edible oil brand to a leading healthy lifestyle brand Riding a health care tailwind in India : Saffola 5 yr volume CAGR ~12% Leadership position in super premium refined edible oil segment (55% Volume Market Share) Entry into breakfast cereals market in 2010 (Saffola oats a
Slide 14: Recent Launches
Recent Launches Body Lotion (FY12) • Market Size : INR 800 cr (USD 130 mn) • Market Growth Rate : ~15% • Marico Market Share : ~6% • No. 3 position Oats (FY13) • Market Size : INR 250 cr (USD 40 mn) • Market Growth Rate : ~15% • Marico Market Share : ~14% • No. 2 position Livon Conditioning Cream Co
Slide 15: Strong Distribution Network (India)
Strong Distribution Network (India) • Direct Reach: Over 900,000 outlets 70% 30% • Indirect Reach: ~ 4 million outlets Revenue Revenue Urban Rural Leveraged Modern Trade Channel to drive urban growth • 7% of India sales comes from modern trade GTM Transformation initiatives planned Leveraged technol
Slide 16: Marico International
Marico International • Focus on : – Emerging markets of Asia & Africa – Hair & Skin Nourishment and Male Grooming • Operates in Geographic hubs leading to supply chain and media synergies • Opportunities for expanding footprint – From Bangladesh, Malaysia, Vietnam to Rest of South East Asia – From G
Slide 17: International Portfolio
International Portfolio Bangladesh Middle East Egypt Vietnam South Africa 44% 6% 13% 25% 9% Categories : Coconut Oil, Value Categories: Added Hair Oils, Categories : Male Categories : Categories : Hair Powdered Hair Oils, Hair Hair Grooming, Ethnic Hair Care, Dyes, Deodorants, Creams/Gels Skin Care
Slide 18: International Strategy
International Strategy Bangladesh Middle East Egypt Vietnam South Africa 44% 6% 13% 25% 9% * Leverage * Grow * Grow market in distribution Creams/Gels male network * Gain back lost market shampoo/shower * Build Scale in share in hair oils, * Grow Value * Establish Value gels SA creams/gels Added Hai
Slide 19: Future Growth Strategy
Future Growth Strategy • Expand Markets where we have significant leadership – Parachute coconut oil in India and Bangladesh – Saffola – Premium healthy refined edible oil – Hair Code/Fiancee – hair gels/creams in Egypt – Post Wash Conditioner/Hair Serums in India • Increase Share in other categorie
Slide 20: Dividend Distribution & Cash Deployment
Dividend Distribution & Cash Deployment • Focus on maximization of shareholder value • Marico has followed a conservative dividend policy over past few years – Deployed internal accruals to fuel organic & inorganic growth • With higher cash generation, increased dividend in FY14 to 350% (Rs.3.50 per
Slide 21: Talent Management & Succession Planning
Talent Management & Succession Planning • Professionally managed organization • Believes ‘Culture drives business’ • Fosters entrepreneurial spirit and sense of ownership in all members • Strategic Business Planning (SBP) articulates Marico’s future imperatives and capability needs – Translated to i
Slide 22: Financial Highlights
Financial Highlights Particulars (INR Crores) FY10 FY11 FY12 FY13 FY14 Revenue from Operations 2661 3128 3980 4596 4687 Profit Before Tax 298 376 400 552 695 Profit After Tax 232 286 317 396 485 EPS: Annualized (INR) 3.8 4.7 5.2 6.1 7.5 Book Value per Share (INR) 10.70 14.90 18.59 30.77 21.1 Capital
Slide 23: The Most Awarded FMCG
The Most Awarded FMCG • Featured amongst eight Indian companies in Standards & Poor’s list of Global Challengers • Super brands voted Parachute a Super Brand in UAE & Bangladesh • Marico won the Annual Supplier Award by Bharti Walmart and Joint Business Planning – Best Debutant for 2012 • • Innovato
Slide 24: Shareholding Pattern as on March'14
Shareholding Pattern as on March’14 23
Slide 25: Investor Relations Communications
Investor Relations Communications • One on one meetings with the Buy side and Sell side • Marico Website • Annual Report • Latest Quarterly Updates • AGM Notice • Shareholding Pattern • http://www.marico.com/html/investor/overview.php • Quarterly Results • Information Update • Media Release • Earnin
Slide 26: Thank You
Thank You