green supply · pdf filemarico : snapshot beauty & wellness ... •portal menu and sop...

Green Supply Chain

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MARICO PERSPECTIVE

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Marico : Snapshot

� Beauty & Wellness Solutions

� Hair Care, Health Care, Skin Care, Male Grooming

� A leading Indian MNC Group INR USD

� Market Capitalization 31,000 Cr 4.7 Billion

� Turnover FY 16 6,132 Cr 920 Million

� Profit FY 16 573 Cr 110 Million

� Turnover from overseas : 22%

� Sustained Profitable Growth

� Turnover 16% Profits 19% (5 yr CAGR)

� Hair Care

� Hair Nourishment

� Oils/Serums/Tonic

� Healthcare

� Healthy refined edible oils

� Oats

� Male grooming/ styling

� Deodorants

� Hair Creams/Gels/Wax

� Skincare

� Body Lotion

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Portfolio : Beauty & Wellness

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What is supply chain ?

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Integrating Environment thinking into Supply ChainManagement, including product design, procurement,

manufacturing processes, delivery of product and end life

management of product.

What is Green supply chain ?

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Green supply chain – Marico perspective

Product & process design

Procurement

Manufacturing

Logistics

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Procurement

Manufacturing

Logistics

8

Product & Process Design

1

Recycle

Reduce

ReuseRefuse

Reform

Purchase of environmentally

burdensome materials

waste material

Waste material

without processing

Design for current

Or other use

materials as

resources

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• Majority products are oil based which natural oils like coconut oil,

sesame, sunflower, rice bran oil and herbal extracts

• Natural colors are used in products

• Zero toxin contents and no impact on biodiversity as formulations

are based on natural ingredients which are commonly traded

• Recyclable material used in 98% of our products as packaging

material

1

Recycle

Reduce

Reuse

Refuse

Reform

10

Product & process design – Material conservation

Projects of design & spec optimization in last 4 yearsProjects of design & spec optimization in last 4 years

Categories of Packing materialCategories of Packing material

% Packing material / Kl saved% Packing material / Kl saved

57

10

1

3.5

Recycle

Reduce

ReuseRefuse

Reform

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• Lean processes are designed to reduced waste

• Solid waste and byproducts are reduced year on year with efficiency

improvement projects

• Packaging material design is most optimized as compared to

benchmarks through multiple innovation collaborating with

suppliers and technical expertise

• Packing material is recycled as well as reused with stringent quality

protocols

1

Recycle

Reduce

ReuseRefuse

Reform

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Procurement

Manufacturing

Logistics

Procurement - Spend

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Agri.

Commodities

67%

Raw Materials

20%

Packaging

Materials

13%

Chart Title

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Procurement – Green Initiatives

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Indigenization

Disintermediation

Farmer Remuneration improvement

Awareness Training &

propagation

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Indigenization Program for High Oleic Safflower

Long Term Development of

Seeds

Long Term Development of

Seeds

Seed Production with

Isolation

Seed Production with

Isolation

Effective deployment on farms through

extension

Effective deployment on farms through

extension

2Target to reduce 50% import dependency by 2020Target to reduce 50% import dependency by 2020

Partners in development

� DOR

� Tamilnadu Agriculture University

(TNAU)

Disintermediation – E-buying

Disintermediation – E-buying Challenges

• Portal menu and SOP in local languages

• Basic computer training to vendors

• Second generation brought into the business

• Portal menu and SOP in local languages

• Basic computer training to vendors

• Second generation brought into the businessIT Literacy

• Tie up with local/nearby town internet cafe

• Helped them select and buy computers

• Designed SMS option

• Tie up with local/nearby town internet cafe

• Helped them select and buy computers

• Designed SMS optionConnectivity

• Lightweight and with many features

• Integration of portal with SAP

• Bidding engine with rate segregation and reject features

• Validation and Integration of SMS

• Lightweight and with many features

• Integration of portal with SAP

• Bidding engine with rate segregation and reject features

• Validation and Integration of SMS

Tech Support

Disintermediation - e-buying portal - Benefits

• Farmers/Convertors can sell directly

• Access to archived data 24X7

• Availability of quality data helps take corrective action

• Sense of belongingness - trust on MARICO by enabling access to live info on SAP

• Farmers/Convertors can sell directly

• Access to archived data 24X7

• Availability of quality data helps take corrective action

• Sense of belongingness - trust on MARICO by enabling access to live info on SAP

Vendors

• Paperless transaction

• Resource light model

• Managerial time freed up from non-core activities

• Real time data visibility

• Paperless transaction

• Resource light model

• Managerial time freed up from non-core activities

• Real time data visibility

Marico

Enhanced supplier base reaching to small and marginal vendors

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2

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1. Collection Centres• Started from 2003

• Transparent and inclusive buying process for small and

medium size farmers

• Assured buying channel for farmers

2. Kera Ratna program for Farmers• Loyalty program to incentivise farmers

• Demonstration and training through Farm Care Centers

Disintermediation – Collection centers

Copra Market & Collection Centre

Coconut Farmer

Copra Converter

Local Broker/Transporter

Copra traders in terminal market

Vandikaran (Market Broker)

Brokers

Oil Millers

Transportation Charges/Brokerage

VandikaranCommission

Trader Commission

Trader ProfitBrokerage

Coconut Farmer

Copra Converter

Collection Centre

Center Buying Process

Farmer brings copra to CC

Withdrawal of sample for Q Inspection

• Quality Inspection

• Moisture Analysis

Weighment of Total Lot

Preparation of payment document

• Payment (Cash/ Cheque)

More than 50% sourcing through this route

( Over Half billion nuts )

Increasing farmer remuneration

Improved

Profitability

Water Pumping by selecting electrified

villages

Partnering with Netafim/Jain

Irrigation

Reduce cost by getting them

subsidies

Growth Promoters/POP Dissemination

Monitoring through IT

enabled platforms

Water Storage Mechanisms

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2

0

0.5

1

1.5

Safflower productivity

Productivity improved from 9%to 23%Productivity improved from 9%to 23%

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2

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• Hybrid Coconut Sapling

Propagation

• Scouting for innovation in eco-

system

• Providing organisational support and

infrastructure to help scale up

innovations

• Training programs /Free Samples

and Model Farms across TN & Kerala

• 200 coconuts/tree/year vis a vis 120

nuts by local variety

• Starts yielding in 4 years vis a vis 7

years for local variety


2525

• Cluster Program in Kerala

• Launched in 2007 in Kerala with Coconut Development Board

for boosting farmer income per acre by intercropping and

adequacy in fertiliser usage.

• Marico led formation of clusters and program management to

ensure successful execution

• 8000 farmers enrolled and benefited so far.


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2

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• Promoting Scientific Farm Management Practices

• Pest & Disease Management Sessions/Booklet for Farmers

• New Productivity Improvement Techniques training to Thanjavur District.

Almost 2 sessions per week with groups of 25 to 30 farmers

Apiculture Biochar Micro-nutrient


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Procurement

Manufacturing

Logistics

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Manufacturing

3

Jalgaon Edible oils

CNO Kanjikode

CNOPondicherry

VAHO Dehradun

VAHOPaonta Sahib

Edible oils Baddi

Perundurai CNO OM

VAHO Guwahati

Foods Coimbatore

Youth category - DeosAurangabad

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Sustainability Initiatives ( Renewable Energy )

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Wind Power for In-house and suppliers’

operations

Total KWH per annum to be used from wind in locations

-20 L Units

Co2 emission in terms of Ton

– 1000 Tons of CO2

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Manufacturing – Renewable energy

3

37.6

73.982.6 83.8

0

20

40

60

80

100

FY '13 FY '14 FY '15 FY '16

Biomass % in Energy consumption

1.42

1.24

1.15

1.2

1.25

1.3

1.35

1.4

1.45

FY '15 FY '16

Thermal Energy intesity GJ / KL

Go

od

Go

od

• Usage of renewable bio-fuels

• Improvement in thermal

efficiencies in generation,

distribution and usage

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Manufacturing

3

13821

51033456 3213

0

4000

8000

12000

16000

FY '13 FY '14 FY '15 FY '16

GHG Emissions tCO2 ( Scope 1 )

Go

od

0.0834

0.076

0.074

0.076

0.078

0.08

0.082

0.084

FY '15 FY '16

GHG Intesity tCO2/Kl ( Scope 1+2 )

• Consistent efforts YoY to reduce carbon

footprint through green energy

• Solar illumination / LED lights

• Process design improvements

• Baddi unit is ISO 50001 certified

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Water conservation

0102

0304

Water RecycleAll units have treated waste

water recycling facility

Water reductionEdible unit of Jalgaon received

CII water conservation award

Corporate office has

installed water free urinals

Water free Urinals

Zero DischargeAll units are zero discharge

3

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Operations Excellence

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Act Now!Marico’s Operations Excellence

Model

� Developing lean

culture

� Focus on efficiency

improvement

� Capability building &

problem solving inputs

� Green practices

� Creating a visual

factory

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Recognitions

National Energy Conservation Award

(Ministry of Power) -

CII Excellence in energy

management State energy conservation award National Energy Conservation Award

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Procurement

Manufacturing

Logistics

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Logistics

4

13 Manufacturing units

32 depots

1100 distributors & stockists

Over 15 Lac retail outlets

Half Billion Consumers

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Logistics

4

Pull based system( Ship what sells )

Route optimisation

( shortest route )

Truck Utilisation

( load efficiently )

Backhaul

( reduce idle

Run )

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Pull based system

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Demand Driven – Produce what sells

Reduced Wastages – Materials, Expiries, Returns

Strong IT Infrastructure – Faster Response

Replenishment led order Management System

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Route optmization

4

Reduced miles on the road

Fuel saving – decrease in carbon footprint

Hubrid distribution model to maximise efficiency

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Truck utlization

4

Maximizing benefit through load maximisation

Appropriate selection of vehicles for each route

Correct SKU-mix to maximize vol/wght utilisation

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Backhaul

4

Maximising vehicle run on road – High asset RoI

Reduced idle time for business acquisition

Collaboration with Peers in Industry

Collaboration with transport vendors

Planning and TAT for loading/unloading critical

Marico’s

Corporate Office

Is a

Green Building

Certified by

US Green Building Council

with

Gold Certification

Green

Building

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Organisation purpose – Make a difference

To transform in a sustainable manner,

the lives of all those we touch,

by nurturing and empowering them

to maximize their true potential

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What helped

• Inclusiveness – Power of Members &

Associates

• Measure and improve

• Focussed program management

• Challenging status quo

• Sustenance

• Pride among members

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What helped

• Inclusive Growth

• Sustainable sourcing

• Value enhancement

Sustainable Profitable Growth for company

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Business benefits

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Market Leadership: Key to Category Choice

Brand CategoryIndicative Market

Share (%) #Rank

Penetration Level

Parachute/Nihar Coconut Oil (India) ~ 57% 1 High

Parachute Coconut Oil (Bangladesh) ~ 82% 1 High

SaffolaSuper Premium Refined Edible

Oils (India)~ 60% 1 Low

Saffola Oats (India) ~ 25%* 2 Low

Parachute Advansed, NiharNaturals, Hair & Care

Hair Oils (India) ~ 30% 1 High

X-Men Male Shampoo (Vietnam) ~ 38%* 1 Low

Fiancée / Hair Code Hair Styling (Egypt) ~ 58%* 1 Medium

Set Wet / Parachute Advansed Hair Gels & Creams (India) ~ 52%* 1 Low

Livon / Silk & Shine Post Wash Hair Serum (India) ~79% 1 Low

Parachute Advansed Body Lotion

Body Lotion (India) 6% 5 Low

# Dec’15 rolling 12 month volume market share data sourced from AC Nielsen

* Value Market Share

Marico brands have a no 1 position in their respective segments over around 90% of its turnover

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Business benefits

Sustained stock performance against industry index

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"We are what we repeatedly do.

Excellence, then, is not an act, but a

habit."

- Aristotle

Thank You

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green supply · pdf filemarico : snapshot beauty & wellness ... •portal menu and sop...

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