Marico Limited · NSE:MARICO
Marico — Investor Presentation (May 2021)
60 slides from Marico's investor presentation, May 2021
Slide 1: Investor Presentation May 2021
INVESTOR PRESENTATION May 2021
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………………… 46 • Sustainability …………………......... 49 • Stock Information………………...... 55 • A
Slide 4: Company Overview
COMPANY OVERVIEW Investor Presentation | May 2021 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 $ 8.3 bn. 24% Operating since 1990 Market Capitalisation as on 30th May, 2021* Total Shareholder Return CAGR since listing in 1996 20,525 INR 8,048 cr. INR 1,162 cr. ($ 1.1 bn.)
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 | May 2021 12 < Previous | Next >
Slide 13: Strategy Framework
STRATEGY FRAMEWORK Investor Presentation | May 2021 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 | May 2021 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 8% Share of Group Revenues 77% 2012 2021 2012 2021 MEDIUM TERM EXPECTATIONS Revenue Operating Volume Growth Growth Margins 13-15% 8-10% (depending on 20%+ levels inflation) Investor Presentati
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 | May
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 | May 2021 19 < Previous | Next >
Slide 20: Coconut Oil
COCONUT OIL Market : ~INR 55 bn* (~USD 750 mn) Only Player with Nation-wide Reach – Dominant Market Leader Parachute 54% Nihar 6% Oil of Malabar 1% Total Volume Share ~61% Parachute Nihar Oil of Malabar ~6% ~30% ~43% Last 10 Year Volume CAGR Estimated % of the Market (in volumes) FY21 India in Parac
Slide 21: Value Added Hair Oils (1/2)
VALUE ADDED HAIR OILS (1/2) Market : ~INR 80 bn (~USD 1.1 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 FY21 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: Saffola Edible Oils and Foods
SAFFOLA EDIBLE OILS AND FOODS 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 ~27% FY21 India o Extension of brand equity into Healthy Foods for breakfast, in-between meals, superfood nutrition, m
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 ~63% Volume Market Share ~1% 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 Tactical foray into the Hygiene segment in FY21 – defocused from FY22 o o Multiple launches to cater to consumer demand through differentiated products Will continue to invest through innovation and brand buil
Slide 27: Strong Distribution Network
STRONG DISTRIBUTION NETWORK OVERALL REACH: 5.3 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 33% in outpaced the other channels. FY21. 85% 74% 67% 72% 33% 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 | May 2021 28 < Previous | Next >
Slide 29: International Business
INTERNATIONAL BUSINESS Investor Presentation | May 2021 29 < Previous | Next >
Slide 30: Marico International
MARICO INTERNATIONAL International Business Revenues (in INR cr.) 1,859 1,660 1,578 1,345 1,356 1,364 FY16 FY17 FY18 FY19 FY20 FY21 MEDIUM TERM EXPECTATIONS Share of Group Revenues Likely Organic Constant Currency Growth : Double Operates in geographic hubs leading Digit 23% to supply chain and medi
Slide 31: International Portfolio
INTERNATIONAL PORTFOLIO Bangladesh South East Asia Middle East South Africa Egypt 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 Babycare, Ma
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 | May 2021 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 | May 2021 33 < Previous | Next >
Slide 34: Market-wise Focus Areas
MARKET-WISE FOCUS AREAS Bangladesh Vietnam Middle East South Africa Egypt • 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 • Grow Value Added •
Slide 35: Key Areas of Transformation
KEY AREAS OF TRANSFORMATION Investor Presentation | May 2021 35 < Previous | Next >
Slide 36: Key Areas of Transformation
KEY AREAS OF TRANSFORMATION INNOVATION GO TO MARKET TALENT & CULTURE IT & ANALYTICS STRATEGY Investor Presentation | May 2021 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 | May 2021 37 < Previous | Next >
Slide 38: Innovation – Building Categories of the Future
INNOVATION – BUILDING CATEGORIES OF THE FUTURE Premium Hair Healthy Foods Male Nourishment Grooming Saffola Honey Livon Set Wet Saffola Oodles Beardo Saffola Mealmaker Soya Chunks Saffola Arogyam Chywan Amrut Investor Presentation | May 2021 38 < Previous | Next >
Slide 39: Innovation – Premium Hair Nourishment
INNOVATION – PREMIUM HAIR NOURISHMENT Livon Shake & Spray Serum | Livon Colour Protect Serum | Livon Serum for Dry & Unruly Hair Investor Presentation | May 2021 39 < Previous | Next >
Slide 40: Innovation – Broaden and Scale-up of Healthy Foods Portfolio
INNOVATION – BROADEN AND SCALE-UP OF HEALTHY FOODS PORTFOLIO Saffola Honey Saffola Oodles Saffola Mealmaker Saffola Arogyam Soya Chunks Chyawan Amrut Investor Presentation | May 2021 40 < Previous | Next >
Slide 41: 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 | May 2021 41 < Previous | Next >
Slide 42: 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 | May 2021 42 < Previous | Next >
Slide 43: 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 | May 2021 43 < Previous | Next >
Slide 44: 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 | May 2021 44 < Previous | Next >
Slide 45: IT & Analytics
IT & ANALYTICS Digitize Operations AUTOMATION LISTEN ANALYTICS INTEGRATED CONSUMER REACH End EXPERIENCE Consumers SELL ENGAGE Innovate Business INNOVATE Models Investor Presentation | May 2021 45 < Previous | Next >
Slide 46: Financial Highlights
FINANCIAL HIGHLIGHTS Investor Presentation | May 2021 46 < Previous | Next >
Slide 47: 5 Year Trends
5 YEAR TRENDS Revenues & EBITDA Margin PAT & PAT Margin 20.1% 14.4% 19.8% 13.5% 14.3% 18.0% 18.1% 12.9% 19.5% 12.6% 5,936 6,333 7,334 7,315 8,048 799 814 926 1,043 1,162 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Revenue (in INR cr.) EBITDA Margin (%) PAT (in INR cr.) PAT Margin (%) Net Worth
Slide 48: Dividend Payout
DIVIDEND PAYOUT Focus on maximization of shareholder value Payout has been increasing over the years with higher cash generation FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Dividend Payout Ratio 70% 64% 78% 76% 96% 83% Dividend pay-out shall remain at current levels, unless any organic/inorganic growt
Slide 49: Sustainability
SUSTAINABILITY Investor Presentation | May 2021 49 < Previous | Next >
Slide 50: 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 Over 80% of total energy We account Scope I, II and III Achieved ~68%* reduction in Perundurai operations has been sourced in our opera
Slide 51: 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 Marico has undertaken • In FY21, we completed collection and safe disposal of 16,30,000 kg of In FY21, we replenished 100%
Slide 52: Impact Till Date (3/4)
IMPACT TILL DATE (3/4) FARMERS MARICO INNOVATION FOUNDATION (MIF) Marico flagship program: About 39,000+ farmers Innovate2Beat Covid Challenge – KALPAVRIKSHA launched in enrolled under the program till MIF aims to nurture 680 proposals were received, 20+ 2017 – has improved coconut date innovation i
Slide 53: 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 54: External Ratings
EXTERNAL RATINGS Marico has been rated by MSCI ESG Ratings from 2015 onwards Our 2020 rating stands at ‘A’. A A A A BBB BBB 2016 2017 2018 2019 2020 2021 Marico paved its way into Marico Perundurai unit has Marico Head Office and list of the 16 top Indian been rated ‘PLATINUM’ in MARKS Office (R&D)
Slide 55: Stock Information
STOCK INFORMATION Investor Presentation | May 2021 55 < Previous | Next >
Slide 56: 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 ICICI Prudential Mutual Fund ICICI Prudential Life Insurance
Slide 57: Awards & Accolades
AWARDS & ACCOLADES Investor Presentation | May 2021 57 < Previous | Next >
Slide 58: 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 | May 2021 5
Slide 59: 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 60: 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