1. SWOT ANALYSIS OF MARICO INDIA LTDSUBMITTED TO:SUBMITTED BYPROF. NIHIT JAISWAL AARTI BHAWSARMBA 3rdSEM SEC. P

2. DEFINITION OF THE BUSINESS & COMPANY The company was founded in 1857 By Kanji Morarjiand is headquartered in Mumbai ,India. Marico Limited, together with its various consumergoods and services in India, the Middle East, Asiancountries, Egypt, and the United States. The company provides coconut oils, edible oils, hairoils and other hair care products, fabric care products,processed foods, soaps, and baby care products, as wellas skin care and ayurvedic products. 3. VISSION & MISSION Consumers: For they are the reason we exist Membership: For a sense of ownership empowers us. Excellence: For it unleashes our potential Wealth: For on it hinges our growth Innovation: For it gives wings to ideas MISSION 2020 The Marico Innovation Foundations mission is to providethe nation with first: a belief that Innovation is possibleand is the way to leapfrog India into the center stage ofglobal business leadership, and second: a framework toleverage innovation for quantum growth. 4. Goals & Objective : wish to achieve by 2010 Company commit itself to improving the quality of peoples lives in several partsof the world, through branded Beauty & Companyl products and solutions. Company shall offer brands that enhance the appeal and nourishment of hairand skin through distinctive products and services based on the goodness ofcoconut, other natural substances . Company shall make available brands that contribute to healthy living, through,both products drawn from agriculture offered in natural or processed forms, andservices. Company shall develop, in parts of the world beyond the Indian Subcontinent, afranchise for the branded products and services. Company shall aim to be a leader in each of its businesses through heightenedsensitivity to consumer needs, setting up of new ideas. Company shall share prosperity amongst members, shareholders and associates,who contribute in improving equity and market value. Company shall acquire the status of a friendly corporate citizen, contributing tothe betterment of neighborhood communities,where Company are significantlypresent. 5. SHAREHOLDER NO OF SHARES %Arisaig Partners (Asia) Pte.35,353,269 5.8LtdT Rowe Price International22,040,548 3.62Inc.The Royal Bank Of Scotland19,092,286 3.13HDFC Trustee Company13,840,500 2.27Azim Hasham Premji11,589,417 1.9Franklin Templeton Mutual10,078,146 1.65FundAcacia Institutional Partners 9,949,3891.63Morgan Stanley Investment6,704,1161.1ManagementFranklin Templeton6,615,1631.09Investment Funds 6. Bankers Axis Bank Ltd Citibank HDFC Bank Ltd HSBC ICICI Bank Ltd Kotak Mahindra Bank Ltd Standard Chartered Bank State Bank of India 7. PRODUCT-MIXBRANDS TARGETED CUSTOMERS PARACHUTE Primary Target Women Of All Ages PARACHUTEADVANCEDYoung Girls (College & School Going) HAIR & CARE Appealing To Both Men & Women of All AgesPrimary User the Young Age Group SHANTI AMLA Customer Looking for Value for Money(H.OIL+Badam) SILK & SHINEPrimary Target Female Of age 18 34 AFTER SHOWERPrimary Target Young Males 18 34 MEDIKER Young Children Age Group 3-13 (Due to LiceProblem) SWEEKAR Primary Target Housewives (Due to Economic+Healthy Life for Family) SAFFOLA All Health Conscious Consumers (Specially for Heart Patients) REVIVEHousewives of Urban Area (Higher & Middle Class). 8. MARICO BRAND PORTFOLIO HAIR OIL HAIR CAREEDIBLE OIL OTHERCATEGORYCATEGORY CATEGORY PRODUCTSHAIR &SHANTIPARACHUTE CAREAMLA SIL JAM KAYAREVIVE AFTERMEDIKERSKIN SILK & SHOWER SHINE SAFFOLASWEEKAROIL 9. TOP MANAGEMENT Name-Designation Mr. Milind Sarwate : Cheif - HR and Strategy Mr. Rakesh Pandey:Chief Executive Officer - Kaya Mr. Vilas Shirhatti:Chief - Technology Mr. Saugata Gupta:CEO - Consumer Products Mr. Vijay Subramaniam:Chief Executive Officer - International Business Mr. Vinod Kamath : Chief - Finance and IT andCompl.Officer 10. COMPITITORS Amar Remedies Ltd. J L Morison (India) Ltd. Ador Multiproducts Ltd. JHS Svendgaard Laboratories Bajaj Corp Ltd.Ltd. Colgate-Palmolive (India) Ltd. Jyothy Laboratories Ltd. Dabur India Ltd. Jyoti Cosmetics (Exim) Ltd. Emami Ltd. My Fair Lady Ltd. Farmax India Ltd. Paramount Cosmetics (I) Ltd. Fem Care Pharma Ltd. Procter & Gamble Hygiene & Gillette India Ltd.Healthcare Ltd. RayBan Sun Optics India Ltd. GKB Ophthalmics Ltd. Velvette International Pharma Godrej Consumer Products Ltd.Products Ltd. Godrej Industries Ltd. Hindustan Unilever Ltd. 11. JOINT VENTURE 1.Marico Buys JV Partners Stakes(23 per cent stake) ;2003 2.ADANI (50:50 joint venture) 3.It acquires Oriental Extractions-Manjal from OrientalExtractions Pvt Ltd; Jan 03, 2006 4.It acquires Hindustan Lever Ltd-Nihar from Unilever ;Jan27, 2006 5.It acquires Sundari a manufacturer of skin care products(7.5 per cent stake in Sundari) 6.It acquires Oil of Malabar from West Coast India; Nov 01,1999 acquired the aesthetics business, of the Singapore basedDerma Rx Asia Pacific Pte. Ltd. (Derma Rx), under theKaya portfolio 12. Operating Profit Margin(%) = EBIT/sales*100year calculation Total2010 320.58/2001.5016.012009 254.70/1921.8513.252008 196.18/1568.7812.502007 193.35/1371.6614.092006 139.10/1044.9113.31 Interpretation: companys revenue is left over after paying for variable costs of production such as wages, raw materials, etc. In the 2010 the Operating Profit Margin is 16.01% which is the highest in the last 5 years so that the Company will to be able to pay for its fixed costs, such as interest on debt. 13. Gross Profit Margin(%)=Gross Profit/sales*100year calculation Total2010 317.78/2001.5015.642009 235.92/1921.8512.272008 190.96/1568.7812.172007 185.98/1371.6613.552006 142.20/1044.9113.60 Interpretation: In the 2010 the Gross Profit Margin is 15.64 % which is the highest in the last 5 years so that the Gross profit margin will to be able to pay additional expenses and future savings. 14. Net Profit Margin(%) = Net Profit AfterTax/Sales*100year calculationTotal2010 235.02/2001.50 11.572009 142.12/1921.85 7.392008 143.42/1568.78 9.142007 122.36/1371.66 8.922006 101.14/1044.91 9.67 Interpretation: Net profit margin will to be able to pay the operational expenses .In 2010 the company is more able to pay the interest, tax, dividends and so on.rather than previous years. 15. EPS = Net Profit After Tax*PreferenceDividend/no. of equity share yearcalculationTotal 2010235.02/60.93 3.86 2009142.12/60.90 2.33 2008143.42/60.90 2.36 2007122.36*1.65/60.902.01 2006101.14/581.74Interpretation: Earnings per share serves as an indicator of a companys profitability. There isconsistence increase in EPS. No. of equity shares are stable in 2007, 2008 and 2010and not much diffrence in 2009 and 2010 so it shows that the policies of thedirector of the company is yery good. 16. Return on Net Worth(%) = EBIT/Total NetWorth*100year calculation Total2010 320.58/571.66 56.072009 254.70/367.68 69.272008 196.18/280.23 70.062007 193.35/183.49 105.372006 139.10/277.36 50.15Interpretation:There is decrement in Return on Net Worth from 2007 to 2010 continously so profit ofthe company generates with the money which shareholders have invested isdecreasing. Return on Net Worth measures a corporations profitability . 17. Dividend on Pay Out Ratio = DPS/EPSyearcalculationTotal20100.66/3.860.1720090.66/2.330.2820080.66/2.360.2720070.66/2.010.3220066.20/1.743.56 Interpretation: The Dividend on Pay Out Ratios are decreasing because now policy is that the company is reinvesting the profit in the firms activity rather than as a cash payout to shareholders 18. yearPBDIT Depriciatio PBIT PBTPATNet Profitn2010343.6225.21 318.41 300.11 292.57 235.022009222.1017.03 205.07 176.15 194.47 142.122008211.9518.93 193.02 173.27 173.27 143.422007191.9535.19 156.76 136.75 144.59 122.362006142.7233.23 109.49 104.47 106.69 101.14TOTAL 1112.34 129.59982.75 890.75 911.59 744.06 19. PERACHUTSCOCONUT OIL NIHAR,& KAYA SKINSAFFOLA (EDIBLE MAHAOIL), SILK NSHINE THANDA 20. 1.STAR It is represented a product having high relativemarket share and high market growth rate. It need capital over and above its cash flow tomaintain its market share. It provides cash for growingstars. It suggested Expansion Strategy for STAR .. E.G. KAYA SKIN CARE AND PERACHUTS COCONUTOIL IN MARICO AND IN THE INDUSTRY HLL ANDGODREJ COMES IN THIS CATEGORIES. 21. 2.QUESTION MARK ??? It represented by a Product having low relativemarket share and high market growth rate I.E lowmarket share in a growing market. It requires largecash due to market growth, but generates less cashdue to low market share.It requires additionalinvestment to increase its competitive advantage. E.G NIHAR, SAFFOLA AND IN THE WHOLEINDUSTRY DABUR COMES IN IT. These product company given more advertisement.Because these product not more popular in themarket. So company given more cash to these product. 22. 3.CASH COW It represent by a Product having high relative marketshare and low market growth rate. It is notattractive in long ran due to less market growth rate. E.G SAFFOLA (EDIBLE OIL), SILK N SHINE competitor -FORCHUN OIL , DHARA OIL etc. To meet the investment need of stars on questionmarks, over heads and growth strategy is suggested. 23. 4.DOG It represents a product having low relative marketshare and low market growth rate. It has very lowcompetitive position due to high costs, poor quality,poor marketing etc.It also has low growth potentialdue to low market growth rate. The preferred strategyis retrenchment. EX. MAHA THANDA Copititor-navaratn cool 24. AWARDSMarico has also won various other Awards, such as the following: Marico won 4 Awards for excellence in Employer branding &Advertising to Talent at the Remmy Awards 2009 . Saffola won Media Abby Gold for the World Heart Day Radioentry - " Radio goes silent" at the Goa Fest 2009 . Marico was awarded the IMC Ramkrishna Bajaj National QualityAward in Manufacturing Category by the Indian MerchantsChamber . Parachute won the Asia Star Award for the Parachute bottlewarmer awarded by Asia packaging Federation . Parachute ranked 6th Most Trusted Brand in Bangladesh by TheBangladesh brand forum - an affiliate of the Global BrandForum, Singapore in 2008 . Parachute won the Outstanding Marketing AchievementA w a r d - S ilv e r in 20 0 8. 25. STRUCTUREA Flat Structure : Marico has a flat organizational structure,with just five levels between the Managing Director andthe shop floor operator. At Marico, everyone is a memberand not an employee. As a member, each individual isempowered..Profit Centers: This division manufactures & markets Maricos 10leading consumer product brands like Parachute,Saffola, Kaya Skin Clinics under the banner of KayaSkin Care Ltd. All the above profit centers have theirdedicated marketing teams, distribution channels,sales force. 26. Finance: The company is strongly supported by the FinanceDivision, which handles the legal, treasury, tax, controlsystems and management information support.HR: Equal support comes from HRD team, which expendsits energies, formulating and building strategies tobuild a stable and high - talent organisation. 27. Domestic Business CategoryMarket share range %BrandsParachute, Oil Of Coconut Oil 55Malabar, NiharHair Oil (Hair & Care,Hair Oils 22Parachute Jasmine, HairOils 22Parachute Advansed,Shanti Badam Amla,Nihar)Saffola Refined Safflower oil 98Mediker Anti-lice Treatment 90ReviveInstant fabric starch 80 28. Strength FINANCE Centralized payment Decentralized collection Low invest Source of funds Management of funds 2009-10, the company generated a Turnover of aboutRs.26.6 billion (USD 600 Million) In 2008-09 13.6billion (about 380 million) 15%profits-over last 5 years 30%* market share (640 billion) 29. Marketing widespread distribution network of more than 2.5 Millionoutlets in India and overseas. innovative approach :focused on meeting the emergingneeds of the modern day consumers Wide variety of product Understanding of Indian consumer behavior in the hair oilsegment Large distribution network all over India.Rural marketreach one of the largest amongst Indian FMCG company. Marico reach approximately 130 Million consumers inabout 23 Million households No. 2 player in the growing VACNO (Value Added CoconutOil) 30. Strong brand equity Wide global presence High bargaining power Diversification of business by expansion 31. Operation Plant location as per raw materials availability Low cost operations Absorb imported technology R & D system is so good MIS system of operation and control system Plant location Production system Operation and control system Strong in inventory control (28 days) In house production no outsourcing-high reliabilitysupplierssuperior quality assurance. India and foreign production location-spread benefit. 32. Cntd. Use JIT (just in time) approach for handling of rawmaterial Known for their which reliability which comes fromefficient operations 33. HR a flat organizational structure empowered : everyone is a member and not an employee Maricos structure is dynamic & constantly Good personnel system Good industrial relation with other company Personnel system Organisational and employee characteristics Industrial relations Quality and motivation of personnel rated as one of the most innovative companies by BusinessToday -Monitor Group 34. Weakness FINANCE Fixed price Sales of Rural Area was Slowly Decreasing.Marketing Not strong within the shampoo segment, havinghardly any share Not having any antidandruff hair oil whose marketpotential is worth 25% of the total oil market in India. Low company image Low promotion Low export level 35. Contd Operation High cost of branded products HR High dependence on Parachute High leverage compared to peers Indian labour laws are relatively unfavorable to the trades and there is an urgent need for labour reforms in India 36. OpportunityFinance Indias Rs.460 billion FMCG market Increase Income Level With Result in Faster Revenue Growth.Marketing Need to concentrate within the various others market potentialzones like hair shampoo, hair colorants etc. Large Domestic Market Growth Marico, is betting big on its international business and isopen to acquisitions provided they fit in with its overall growthstrategy . Growth in international markets Successful entry into beauty and healthcare market Untapped rural market In rural markets, brands are non-existent 37. Operation Constant innovation access international technology Huge Distribution Network :including 2 million in 3,160towns and four million in 627,000 villages. Low education level. Foreign countries emerging as a leading buyer of the products Expand geographical presence Less developed infrastructure. HR India is rich in highly trained manpower Industry has large and diversified segments that provide widevariety of products Population 38. ThreatsFinance Maricos debt-to-equity ratio for FY 2008 was 1.1, which is the highest among the FMCG companies. Any further large acquisitions financed by increasing leverage. Tax and Regulatory structure Economic slowdown resulting in lower consumer spending Currency risk: Marico derives approximately 20% of its revenues from international markets.Marketing Maricos key raw materials include copra, kardi oil, sunflower oil, corn oil and rice bran oil, which are commodity crops whose availability isseasonal. Competition from the diverse players present in the market can cause loss of market share. Intense competition from global brands in international market 39. Operation High cost of Land Environmental regulations Infrastructural bottlenecks in terms of power, utility, road transportetc Inadequate transport Geographical Disadvantages Retailers are becoming stronger and are wielding more power overmanufacturersHR More job opportunities for the Human Resources around the world International labor Laws Despite technological advances, beverage sector remain labour-intensive Labor problems Any change in Government policy 40. Benchmarking Strategic BenchmarkingProcter & Gamble Hygiene & Healthcare Ltd is thebenchmark for the in strategic benchmarking. Competitive BenchmarkingHUL is the benchmark for the M&M in Competitive benchmarking Process Benchmarking HUL External Benchmarking Maricos shares on Wednesday closedat Rs112.25 on the Bombay Stock Exchange, down 0.22%. Daburclosed 1.19% higher at Rs180. The benchmark Sensex closed1.76% lower at 17,380.08 points Internal BenchmarkingMarico is setting the example to others for his Internal benchmarking. 41. PLC MODEL OF MARICO INDIA LTD. KAYA SKIN SAFFOLANIHAR, SIL CARE AND(EDIBLEMAHAJAMPERACHUTS OIL), SILK N THANDA COCONUT SHINE 42. Stage CharacteristicsMarket introduction stage slow sales volumes to start demand has to be created makes no money at this stageGrowth stage costs reduced due to economies of scale sales volume increases significantly public awareness increases competition begins to increase with a few new playersin establishing market The preferred strategy is growth 43. ContdMaturity stage The preferred strategy is stability or modest growth sales volume peaks and market saturation is reached increase in competitors entering the market.(fortune,dhara) brand differentiation and feature diversification isemphasized to maintain or increase market shareSaturation and decline stage sales volume decline or stabilize prices, profitability diminish profit becomes more a challenge ofproduction/distribution efficiency than increased sales 44. STRATEGIESCORPORATE LEVEL STRATEGIES Emphasis on providing value goods to consumers, Joint venture and acquisition with players like Hll,adani & sundari. Sustained expansion in capacity to meet the growingdemand of Edible oil in India. Diversify geographic footprint, and enhance scale andreach of operations. 45. BUSINESS LEVEL STRATEGIES Early entry in business Accurate demand forecasting High capacity utilization Price based compition is so serve that cost becomes animportant factor. Company make product for skin is Kaya Skin Carethese is so nuch differentiation to other.Night cream is PARASHUTE NIGHT REPAIR CREME 46. FUNCTIONAL LEVEL STRATEGIES widespread distribution network. Strategy of PARASHUTE product on popular and premium range products. 47. Suggestion Marico is the leading industry in FMCG sector inedible oil,beauty n health care segment in India butcan also target other segments. Pay attion towards R & D. Adopt the eapansion strategy. Increase the Export. Increase the brand image Shanti Amla & Nihar Promotion Policy 48. Conclusion Company Marico has strong and long term associationwith the retailers in rural areas . Parachute is the most satisfied Brand/product,followed by Saffola, Silk & Shine Hair & Care, andSweekar Edible Oil & after Shower Gel. 49. THANK YOU!!!!!