Marico Limited · NSE:MARICO
Marico — Investor Presentation (June 2024)
46 slides from Marico's investor presentation, June 2024
Slide 1: Investor Presentation June 2024
Investor Presentation June 2024
Slide 2: Marico at a Glance
MARICO AT A GLANCE One of India’s leading Consumer Products companies operating in the Beauty & Wellness space. 30+ Years $ 10.1 bn. 22% Operating since 1990 Market Capitalisation in June 2024 Total Shareholder Return CAGR since listing in 1996 25,492 INR 9,653 cr. INR 1,470 cr. FY24 Revenue FY24 Re
Slide 3: 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 and Male Grooming in a few chosen markets in Asia and Africa. South India Africa Middle South East & East Asia North Bangladesh Africa The Company
Slide 4: Board of Directors
BOARD OF DIRECTORS Mr. Harsh Mariwala Mr. Saugata Gupta Mr. Ananth Narayanan Ms. Apurva Purohit Chairman & Non-Executive Director Managing Director & CEO Independent Director Independent Director Mr. Milind Barve Ms. Nayantara Bali Mr. Nikhil Khattau Mr. Rajan Bharti Mittal Independent Director Inde
Slide 5: Management Team
MANAGEMENT TEAM Mr. Saugata Gupta Mr. Amit Bhasin Mr. Amit Prakash Managing Director & CEO Chief Legal Officer Chief Human Resources Officer Mr. Ashish Goupal Dr. Shilpa Vora Mr. Pawan Agrawal Chief Executive Officer – International Business Chief R&D Officer Chief Financial Officer Ms. Somasree Awa
Slide 6: Strategy Framework
STRATEGY FRAMEWORK Investor Presentation 6 < Previous | Next >
Slide 7: 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 8: Inorganic Growth Opportunities - Playbook
INORGANIC GROWTH OPPORTUNITIES - PLAYBOOK Key Attributes Premium Select Hair Healthy Existing Categories Personal Markets Markets in Nourishment Care Foods Markets Asia New Markets o Market Leader Brand o Strong Distribution Past Acquisitions/Strategic Investments 2006 2007-08 2010 2011 Existing Mar
Slide 9: India Business
INDIA BUSINESS Investor Presentation 9 < Previous | Next >
Slide 10: Portfolio: Beauty, Wellness & Hygiene (1/2)
PORTFOLIO : BEAUTY, WELLNESS & HYGIENE (1/2) Coconut Value Added Saffola Oil Hair Oils Edible Oils & Foods • Saffola • Parachute • Parachute Advansed • Saffola Fittify • Nihar Naturals • Nihar Naturals • Saffola Masala Oats • Oil of Malabar • Hair & Care • Saffola Honey • Saffola Munchiez Investor P
Slide 11: Portfolio: Beauty, Wellness & Hygiene (2/2)
PORTFOLIO : BEAUTY, WELLNESS & HYGIENE (2/2) Premium Others Personal Care • Livon • Mediker • Set Wet • Revive • Parachute Advansed Men Investor Presentation 11 < Previous | Next >
Slide 12: Coconut Oil
COCONUT OIL Market : ~INR 55 bn* (~USD 700 mn) Only Player with Nation-wide Reach – Dominant Market Leader Parachute 54% Nihar 6% Oil of Malabar 2% Total Volume Share ~63% Parachute Nihar Oil of Malabar ~30% 5-7% 37% Estimated % of the Market (in volumes) Medium-term India Business selling coconut o
Slide 13: Value Added Hair Oils (1/2)
VALUE ADDED HAIR OILS (1/2) Market : ~INR 80 bn (~USD 1 bn) 24% 27% 14% 3% 18% 14% Not present Light Hair Oils Amla Hair Oils Value Added Cooling Hair Oils Anti-Hair Fall Others Coconut Hair Oils Medium Term Value Growth Aspiration – Double Digit Likely to see sustained growth Market Leader in Hair
Slide 14: 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 15: Saffola
SAFFOLA Evolution from an edible oil brand to a leading healthy lifestyle brand o On the back of increasing relevance of healthy living 29% o Extension of brand equity into Healthy Foods for breakfast, in-between meals, plant-based India Business protein, healthy snacking and immunity boosting foods
Slide 16: Premium Hair Nourishment
PREMIUM HAIR NOURISHMENT Market : ~INR 2.2 bn (~USD 31 mn) Medium Term Value Growth Aspiration: 20%+ o Tail wind category with low penetration o Focus on driving category growth through innovation and ~50% Volume Market Share consumer engagement Leader in Leave-in Hair Conditioners o Key Channels: S
Slide 17: Male Grooming
MALE GROOMING o Marico acquired Set Wet in May 2012 o Tail wind category with low penetration o Caters to millennials – therefore huge growth potential Hair Gels/ Creams Deodorants Waxes Medium Term Value Growth Aspiration: 20%+ Medium Term Strategy o Growing the market through continuous product an
Slide 18: Strong Distribution Network
STRONG DISTRIBUTION NETWORK OVERALL REACH: 5.8 MILLION OUTLETS OUT OF 11.3 MILLION OUTLETS – HUGE HEADROOM FOR GROWTH Urban – Rural Split : Urban salience is ~70% of sales while Channel Split: Alternate channels (Modern Trade and E- rural contributes the remaining ~30%. The split has largely Commerc
Slide 19: International Business
INTERNATIONAL BUSINESS Investor Presentation 19 < Previous | Next >
Slide 20: Marico International
MARICO INTERNATIONAL International Business Revenues (in INR cr.) 2,521 2,414 2,179 1,859 1,660 FY20 FY21 FY22 FY23 FY24 Share of Group Revenues Operates in geographic hubs leading to supply chain and media synergies 26% Investor Presentation 20 < Previous | Next >
Slide 21: 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 & Styling, Hair Care Healthcare, Skincare Grooming and Styling Babycare, Male
Slide 22: 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, Female personal care Hair Care and Styling, Male Grooming Investor Presentation 22 < Previous | Next >
Slide 23: International Portfolio
INTERNATIONAL PORTFOLIO South Africa Hair Care, Healthcare, Skincare MENA Coconut Oil, Hair Care, Male Grooming and Styling Investor Presentation 23 < Previous | Next >
Slide 24: 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 hair oils, creams/gels Africa • Establish Value Added gels/deodorants Hair Oils • Grow Va
Slide 25: Strategy Outlook
STRATEGY OUTLOOK Investor Presentation 25 < Previous | Next >
Slide 26: Driving 4Ds to Make Marico Future-Ready
DRIVING 4DS TO MAKE MARICO FUTURE-READY Unlock the next leg of growth through… Diversification Distribution Digital Diversity …..and continue to maintain focus on Grow the Core Cost Management ESG Commitments Investor Presentation 26 < Previous | Next >
Slide 27: Diversification – Premiumise Within Core Hair Oils
DIVERSIFICATION – PREMIUMISE WITHIN CORE HAIR OILS Parachute Advansed Aloe Vera Enriched Coconut Hair Oil Parachute Advansed Onion Hair Oil Investor Presentation 27 < Previous | Next >
Slide 28: Diversification – Broaden and Scale-up in Foods
DIVERSIFICATION – BROADEN AND SCALE-UP IN FOODS Foods portfolio to be 2x of current scale in FY27 Saffola Honey Saffola Mealmaker Saffola Munchiez Soya Chunks True Elements Plix Saffola Peanut Saffola Butter Mayonnaise Investor Presentation 28 < Previous | Next >
Slide 29: Diversification – Digital First Portfolio
DIVERSIFICATION – DIGITAL FIRST PORTFOLIO Aim for Digital-First brands to achieve 2x ARR in FY27 Investor Presentation 29 < Previous | Next >
Slide 30: Diversification – International Portfolio Expansion (1/2)
DIVERSIFICATION – PORTFOLIO EXPANSION IN INTERNATIONAL MARKETS (1/2) Bangladesh South-East Asia - Vietnam X-Men Face Wash Range Lashe ‘Parachute Naturale Shampoo’ range Hair Care and Shower Gel Range Red King Men’s Cooling Oil Purité de Prôvence, Ôliv Female Personal Care ‘Parachute Just for Baby’ B
Slide 31: Diversification – International Portfolio Expansion (2/2)
DIVERSIFICATION – PORTFOLIO EXPANSION IN INTERNATIONAL MARKETS (2/2) MENA - Middle East MENA - Egypt Fiancee Nourishing Hair Oil Range Saffola Masala Oats Savoury Oats Range Parachute Advansed Hair Oil Range Fiancee Nourishing Hair Cream Parachute Skinpure Aromatic (Pump and Jar Packs) 100% Organic
Slide 32: Distribution: Building Future-Ready Go-To-Market Infra
DISTRIBUTION : BUILDING FUTURE-READY GO-TO-MARKET INFRA Leverage IT & Analytics • PDAs, ISRO, RETINA New-Age & Specialty Channels • NAGTM – Chemists, Cosmetics & Specialty Foods Distribution Expansion • Specialist GT, Modern Trade, E-Commerce • Direct Reach & Wholesale Investor Presentation 32 < Pre
Slide 33: Distribution: Project SETU to Drive GT Growth
DISTRIBUTION : Project SETU to drive GT growth through expansion in Direct Reach 3-Year Phased Plan A fit for purpose and FY27 fit for future GTM Model FY24 Market share Gain across categories in rural and urban 1 mn 1.5 mn Direct reach Direct reach To drive profitable growth and competitive advanta
Slide 34: Project SETU: Resource Re-allocation
Project SETU: Resource re-allocation to fund coverage improvement & demand generation Project SETU will be cost neutral BTL & Channel Coverage & Infra Spends Improvement Costs Optimize Wholesale channel spends Scaled up sales force, distributor (indirect distribution cost) & commercials, process sim
Slide 35: Digital: IT & Analytics
DIGITAL: IT & ANALYTICS Business strategy driven by digital Innovate Incubate Scale Digital strategy aligned with business strategy Enablers - Talent & Skills, Ways of Working, Technology, Data assets, Analytics Initiatives: Prioritized use cases Spends effectiveness tower Digital Quotient of Market
Slide 36: Diversity: Diverse Talent and Inclusive Culture
DIVERSITY: DIVERSE TALENT AND INCLUSIVE CULTURE Diversity: Diverse Talent and Inclusive Culture ‘Inclusion & Diversity’ will continue to be a strong business driver for Marico Gender Differently Abled Thought Inspiring Inclusive Growth Accelerate Amplify ‘Equal Opportunity’ Enhance Positive, Enablin
Slide 37: Sustainability
SUSTAINABILITY Investor Presentation 37 < Previous | Next >
Slide 38: External Ratings
EXTERNAL RATINGS Marico has been rated by MSCI ESG Ratings from 2015 onwards Our 2024 rating stands at ‘AA’. AA AA AA A A A BBB 2018 2019 2020 2021 2022 2023 2024 Marico paved its way into list Marico Perundurai unit has Marico Head Office and MARKS of the 16 top Indian been rated ‘PLATINUM’ in Offi
Slide 39: Awards & Accolades
AWARDS & ACCOLADES Investor Presentation 39 < Previous | Next >
Slide 40: Recent Awards and Recognitions
RECENT AWARDS AND RECOGNITIONS Awards and Recognitions Marico awarded the Quality Marico recognized amongst the Marico has been recognized with the Marico won Best Innovative Company Manufacturing Award at The Top 25 Digital Disruptors in India Food Safety and Quality Company of the of the Year Awar
Slide 41: Stock Information
STOCK INFORMATION Investor Presentation 41 < Previous | Next >
Slide 42: Stock Information
STOCK INFORMATION Top Institutional Shareholders Stock Data Bloomberg Ticker MRCO IN EQUITY Stewart Investors RBC Global Asset Management BSE Ticker 531642 Life Insurance Corporation of India Aikya Asset Management NSE Ticker Marico HDFC Mutual Fund Fidelity International Market Capitalization (INR
Slide 43: Financial Highlights
FINANCIAL HIGHLIGHTS Investor Presentation 43 < Previous | Next >
Slide 44: 5 Year Trends
5 YEAR TRENDS Revenues & EBITDA Margin PAT* & PAT Margin 10,300 17.7% 18.5% 21.0% 22.0% 1,600 15.2% 15.5% 19.8% 21.0% 12.9% 13.1% 8,300 20.1% 14.4% 15.0% 14.3% 20.0% 1,100 14.5% 6,300 14.0% 19.0% 4,300 13.5% 18.0% 600 13.0% 2,300 17.0% 12.5% 7,315 8,048 9,512 9,764 9,653 1,043 1,162 1,225 1,280 1,47
Slide 45: Dividend Payout
DIVIDEND PAYOUT Focus on maximization of shareholder value Lower payout in FY2023 was attributable to acquisitions during the year FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 Dividend Payout Ratio 76% 96% 83% 97% 45% 83% Dividend pay-out shall be at high levels, unless any organic/inorganic growth opp
Slide 46: Thank You
marico THANK YOU make a difference