Marico Limited · NSE:MARICO
Marico — Investor Presentation (September 2012)
24 slides from Marico's investor presentation, September 2012
Slide 1: Marico: be more. every day. September 2012
marico MalrlCO be more. every day. September 2012
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 Solutions, Male Grooming/Styling A leading Indian MNC Group Market Capitalization ~ Rs. 12,000 Crore + (~USD 2 Billion) Turnover FY 12 ~Rs. 4008 Crore (~USD 729 million) Profit FY 12 ~Rs. 317 Crore (~USD 58 m
Slide 4: Strong Management Team
Strong Management Team Harsh Mariwala Chairman & Founded Marico in 1990 Managing Transformed a traditional commodity driven Director business into a leading Consumer Products and Services Company. International India FMCG FMCG Kaya Support 70% of Group Turnover 24% of Group Turnover 6% of Group Turn
Slide 5: Marico: Brief History
Marico : Brief History Established in the year 1990 Erstwhile Consumer Division of Bombay Oil Mills Parachute Coconut Oil and Saffola Refined Edible Oils Turnover of ~Rs 100 cr (~ USD 18 mio), Profits of ~Rs 2 cr (~USD 0.4 mio) Perceived as a commodity based company Listed in BSE and NSE
Slide 6: Focus: Beauty & Wellness
Focus : Beauty & Wellness Hair Care Hair Oils Pre wash/Post wash/In wash Healthcare Healthy refined edible oils Functional Foods Skincare Cosmetic dermatological Services/Products Body Lotion Male grooming/ styling Deodorants Hair Creams/Gels 5
Slide 7: Coconut Oil
Coconut Oil The only Company with a national presence in INR 24 bn (~USD 436 mio) branded CNO market Volume Market Share Parachute 46% Market Size Nihar 9% Oil of Malabar 1% Branded ~ INR 24 bn (~USD 436 mio) Total 56% Loose ~ INR 8 bn (~USD 145 mio) 40% market (by volume) estimated to be in loose f
Slide 8: Hair Oils
Hair Oils Value Added Hair Oils Market : INR 40 bn (~USD 727 mio) Value Added Light Hair Oils Amla Oils Cooling Oils Anti-Hair Fall Others Coconut Oils 24% 23% 19% 10% 7% 17% Category Play : Significant participation in all key sub-segments • Marico’s Volume Market Share in Hair Oil Market ~ 25%, up
Slide 9: Saffola
Saffola Evolution from an edible oil brand to a leading healthy lifestyle brand Riding a health care tailwind in India : 5 yr volume CAGR ~15% Leadership position in super premium refined edible oil segment (58% Volume Market Share) Entry into breakfast cereals market in 2010 (Saffola oats, savory o
Slide 10: Male Grooming
Male Grooming • Tail wind categories with low penetration – Youth Brands • Favorable demographics: 70% of Indians will be of working age in 2025 Hair Gels/Creams • Marico acquired the Personal Care business Rs.180 Cr Market Growing at 20-25% of Paras (SetWet, Zatak, Livon) in May 2012 • Synergies wi
Slide 11: International Business Group
International Business Group Turnover (Rs Cr) 1200 955 1000 733 800 602 600 440 400 307 193 200 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 • Focus on emerging markets of Asia & Africa • Operates in Geographic hubs leading to supply chain and media synergies • Opportunities for expanding footp
Slide 12: Kaya Skin Care Solutions
Kaya Skin Care Solutions • Kaya offers Dermatological Skin Care Solutions • 107 Clinics – 82 in India, 19 in the Middle East, 2 in Bangladesh, 4 in Singapore and Malaysia • Customer base more than 600,000 – Derma Rx ~40000 • Near Term Challenges – Need to improve client retention • Services of repea
Slide 13: Market Leadership: Key to Category Choice
Market Leadership: Key to Category Choice Penetr Indicative Market Brand Category Rank ation Share (%) # Level Parachute Coconut Oil (India) ~ 46% 1 High Parachute Coconut Oil (Bangladesh) ~ 80% 1 High Super Premium Refined Edible Saffola ~ 58% 1 Low Oils Saffola Oats ~ 12% 2 Low Parachute Jasmine,
Slide 14: Leaders across Categories & Geographies
Leaders across Categories & Geographies #>2 #>2 #2 #2 #1 #1 #>2 #2 #1 Marico brands have a no 1 or no. 2 position in their respective segments over around 90% of its turnover 13
Slide 15: Broad-based Growth
Broad-based Growth • Reduced dependence on one category, segment and geography • New growth engines such as Value Added Hair Oils, Male Grooming, Breakfast Cereals, Body Lotion
Slide 16: Strong Distribution Network (India)
Strong Distribution Network (India) • Direct Reach: Over 800,000 outlets • Indirect Reach: ~ 4 million outlets Urban Rural Leveraged Modern Trade Channel to drive urban growth • 7% of India sales comes from modern trade Leveraged technology to drive impact Enhancing quality of rural reach • Appropri
Slide 17: Focus on Growth
Focus on Growth • Prioritize volume growth over short term profit • Volume growth to expand consumer franchise – Maintain unit margin within a band • Re-invest profits to reinforce established brands and build new growth engines for the future – Prototyping – Strategic Funding (% of profits each yea
Slide 18: Inorganic Growth
Inorganic Growth • Focused on hair care, skin care and health care in India – International : primarily hair care and skin care • Internationally focused on developing markets in Asia and Africa • Establish potential to add value in branding and distribution • Enhance depth of category knowledge in
Slide 19: Future Growth
Future Growth • 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 • Increase Share in other categories – Hair Oils in India – Hair creams & gels in the Mid
Slide 20: The Most Awarded FMCG
The Most Awarded FMCG • Featured amongst eight Indian companies in Standards & Poor’s list of Global Challengers • Marico ranked 18th in the Top Companies for Leaders 2011 from Asia Pacific in a study conducted by Aon Hewitt • Innovator of the year-Supply Chain for Agro Products” Award by Supply Cha
Slide 21: Financial Highlights
Financial Highlights Particulars (INR Crores) FY08 FY09 FY10 FY11 FY12 CAGR % Revenue from Operations 1905 2388 2661 3135 4008 21% Profit Before Tax 205 230 298 376 400 22% Profit After Tax 169 189 232 286 317 23% EPS: Annualized (INR) 2.80 3.10 3.80 4.70 5.15 22% Book Value per Share (INR) 5.20 7.4
Slide 22: Shareholding Pattern as on June 12
Shareholding Pattern as on June 12 21
Slide 23: 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 24: Thank You
Thank You 23 23