Uncommon sense

November 2008

1

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 be deemed to constitute an offer.

No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to the general business plans and strategy of Marico, its future financial condition and growth prospects, future developments in its industry and its competitive and regulatory environment, and statements which contain words or phrases such as ‘will’, ‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, etc., or similar expressions or variations of such expressions. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to risks with respect to its hair care, its healthcare business and its skin care business.

Marico may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation cannot be copied and disseminated in any manner.

No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such information or representation must not be relied upon as having been authorized by or on behalf of Marico. This presentation is strictly confidential.

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Marico Overview

� Beauty & Wellness

� Consumer Products, Services and Solutions

� Hair Care, Health Care, Skin Care

� A leading Indian FMCG Group

� Total Sales & Services (FY08) ~Rs. 19.07 billion

� Net Worth ~Rs. 3.63 billion

� Sustained Profitable Growth(3 year CAGR)

� Turnover 29%

� PAT 39%

3

Beauty & Wellness Brands

� Skincare� Cosmetic dermatological

� Services/ Products

� Ayurvedic skin care products

� Soaps

� Healthcare� Premium edible oils

� Functional Foods

� Kaya Life

� Hair Care� Hair Oils

� Pre wash and Post wash

4

Sustained Profitable Growth

Source: Marico Annual Reports, Consolidated Financials for respective years

Strong Growth in Sales and Income

11,439

15,56919,067

9,32912,044

0

5,000

10,000

15,000

20,000

25,000

FY06 FY07 FY08 H1 FY08 H1 FY09

(Rs.

Mio

)

CAGR 29% YoY 29%

• Growth from all businesses in Q2 FY09

• Organic Growth : 11%

• Inorganic Growth : 3%• Inflation led Growth : 16%

5

Sustained Profitable Growth

Source: Marico Annual Reports, Consolidated Financials for respective years

EBITDA and EBITDA Margins

1,440

1,986 1,3082,4621,496

12.4%

14.0%

12.9%12.8%12.6%

0

500

1,000

1,500

2,000

2,500

3,000

FY06 FY07 FY08 H1 FY08 H1 FY09

(Rs.

Mio

)

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%EBITDA EBITDA Margin

6

Sustained Profitable Growth

� Consistent Across Quarters *

�Sales and Services

�32 consecutive quarters Since Q2 FY 01

�Profit after Tax

�36 consecutive quarters Since Q2 FY 00

* Growth in quarterly performance measured by comparing quarterly performance of the relevant quarter compared to similar quarterly period of the previous year

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Turnover Growth –Organic & Inorganic

� Organic Growth

�Expand market

� for dominant brands

�Gain market share

� for No. 2, No. 3 brands

�New Offerings

�Products and services

� Inorganic Growth

�Contiguous Categories

� India

�Overseas

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India itself as a market

Hair Care Market

• India has 16% of the world population

• Average length of the human hair ~

Twice that of the world average

• India’s share in World hair – 28%

Heart Care Market

• Lifestyle Modification

Skin Care Market

• Currently a low percentage of disposable income

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Coconut Oil

• Grow the branded market

– Conversion from loose to packed

– Micro Marketing

• Focus on smaller market segments

Parachute

• Market Share 48%

(12 months ended August 2008)

• Volume growth Q2FY09 in rigid packs : 12%

Nihar

• Acquired from HUL in Feb 2006

– Adds another 7% - 8% market share

• Sustainable market growth in coconut oil – 7% to 8%

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Hair Oil

• Differentiated offering

• Gain market share

10.9%9.0%Bajaj

6.2%10.1%Dey’s Medical

20.4%17.8%Marico

29.9%35.6%Dabur

12 months ended August 08 FY04

All India Urban and Rural Market share for value added coconut oil, non-sticky

hair oils, Amla and cooling oils

Source: A.C.Nielsen

• Volume Growth (Rigids) Q2 FY09 : 14%

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Post Wash Hair Care

• More “Modern” and Youth Products

• Invest in category creation

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Heart Care in India

• WHO Statistics

• Increased awareness of heart care issues

• Lifestyle modification

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Saffola (Premium Refined Edible Oil)

• Strong “Good for Heart” positioning.

• Doctor recommended

• Safflower Oil and its blends

• Premium niche

• Volume Growth H1FY09 : 18%

14

New Product Pipeline

• Prototype Methodology– Enables experimentation & de-risked growth

• Products Successfully Prototyped– Saffola functional foods – Cholesterol and

Diabetes Management Atta Mix

– Revive Liquid Stiffener

– Parachute Advansed Starz - Cream Gel, Gentle Shampoo and non-sticky hair oil targeted towards kids

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Current Prototypes

• Maha Thanda– Ayurvedic Cooling Hair Oil with 21 herbs

which helps in reducing stress, headache and aids good sleep.

• Parachute Night Repair Crème

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Organic Growth

20%Saffola

46%Hair Oil (Rigid Packs)*

11%Parachute Coconut Oil

3 year CAGR

(upto FY08)Growth in Volumes

� Sustained growth in existing products� New prototypes and product launches to fuel growth� New categories: Post Wash Hair Care, Skin Care, Soap

* Hair Oil includes Nihar Perfume Oil acquired in Feb 2006

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Inorganic Growth

2007South AfricaHair Care and Health

Care

Caivil, Black Chic and

Hercules

2006IndiaCoconut Oil and

Perfumed Coconut OilNihar

2006EgyptHair Cream and GelsFiancée and HairCode

Year of

AcquisitionPrimary MarketsProductsBrands

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IBG – Gulf

• Commenced with targeting expat Indian

– Parachute coconut oil

• Introduced hair creams

– Targets Arabs too

– Market leader in the UAE

– Closing gap on leaders in KSA

• Cream Restaged on platform of nourishment and

protection from harsh water

– Addresses local need

– Supported by localized advertising using regional celebrity endorsement

19

IBG – Bangladesh

• Parachute gaining market share steadily

– 70% (12 months ended August 2008) up from 66% on a year-on-year basis.

• Retail Reach ~ 3,70,000

• Marico Bangladesh turnover (FY08) ~ 1.2 bn

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International Business

� Share of Group’s business up from 8.4% ( 2004) to 16% (2008)

� Leadership in coconut oil in Bangladesh� Significant market share in hair creams in UAE� More than 60% share of hair cream & gels in Egypt

Source: Marico Annual Reports

International Business Consumer Products Turnover

(Rs mio)

9551171

1931

3068

0

500

1000

1500

2000

2500

3000

3500

2004-05 2005-06 2006-07 2007-08

*

* Includes South African operation for part year (Rs 198 mio)

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IBG - Egypt

• Fiancée and HairCode acquired in Sep ’06 and Dec ‘06

• Achieved Rs. 883 mio turnover in FY08

• Margins ~ 18%

• Consistently gaining on market share since acquisition

– Current Share ~ 62%

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IBG – South Africa

• Acquisition of the consumer division of EnaleniPharmaceuticals Limited, South Africa in October 2007

• Entry into the South African ethnic Hair care and Health care market estimated to be in the region of ZAR 1.1 billion ( about Rs. 6 bn) growing at ~15%.

• Current annualised Turnover is about ZAR 95 Million (Rs 530 mn)

• Comprises 3 leading brands, viz. Caivil in premium ethnic hair care, Black Chic in VFM hair care, Hercules in OTC Health Care.

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Entrenched Brands

� Dominant brand categories: Parachute, Saffola, Mediker

� Sector defining categories: Revive, Kaya

2~ 21%Hair OilsParachute Jasmine, Shanti Amla, Hair & Care, Nihar

1~ 80%*Instant Fabric Starch Revive

1~ 90%*Anti Lice TreatmentMediker

1~ 98%Refined Safflower Oil and its

blendsSaffola

1~ 70%Coconut Oil (Bangladesh)Parachute

1~ 48%Coconut Oil (India)Parachute

RankIndicative Market

Share (%) #CategoryBrand

* Company Estimates, # Market share data sourced from A.C. Nielsen for 12 month period ending August 2008

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Sources of Competitive Advantage

Market Leadership

� Portfolio of well recognized brands and extensions

� Segment leaders and segment defining brands

� Parachute, Saffola, Mediker, Revive, Kaya

� Weak competition

Wide Distribution Network

� Strong pan India distribution network

� 32 C&F agents servicing 3,600 distributors and stockists

� Reaches approx 2.5 million retail outlets in India

� IT enabled connectivity with key distributors

Focus on Innovation

� R & D Centre, with over 30 technically qualified scientists

� Successful introduction of various product and packaging innovations

� Mediker oil, Saffola blends, Parachute Therapie, wide mouth jar

� Key new categories identified include Kaya Skin Care Clinics, Revive

Prudent Cost Management

� Structured process of identifying project ideas

� Projects in packaging designs, improving yields, tax structuring etc.

� Consistent focus on effective cost management

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Kaya Concept

• Safe, effective, result oriented cosmetology

– in a spa like ambience

• Skin care solution clinics & Branded

products

– 77 Clinics

– 67 in India 20 cities, 10 in the Middle East

• High efficacy- Holistic methodology, world class technology

• Customer base more than 350,000, very high satisfaction levels

• Turnover in FY08 Rs. 1.0 bn

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Kaya Growth

• Clinic expansion 15 per year

• New Services

– Skin Renewal

• New Products

– Range of Anti-Ageing products under Kaya Revive and Firm

• New Initiatives

– Kiosks

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Kaya Middle East

� Kaya clinics present in 10 clinics

� 8 across UAE, one each in Oman and Saudi Arabia

� Plans to open more clinics in these territories

� Current turnover at about Rs 200 million

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• Holistic Weight Management

•Sustainable weight loss

•Synergy 4 System

•Three centers in Mumbai – Juhu, Malad and Bandra

Kaya Life

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Performance in Numbers

14.012.212.912.812.6EBITDA Margin (%)

0.690.772.81.91.5EPS (Rs.)

7.6

261

58

87

144

1,144

FY06

6574246199EBITDA

9.17.88.97.3PAT Margin (%)

266391315192Net worth

60.960.960.960.9Equity Capital

4247169113Net Profit after Tax

4646031,9071,557Sales/ Services Income

Three

months

ended

Sep 07

Three

months

ended

Sep 08

FY08FY07

(Rs. crore, except ratios)

Source: Marico Annual Reports, Consolidated Financials for respective years

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Capital Expenditure & Funding – 3 years

• Capex for Kaya Rs 750 million

• Normal Capex Rs 500 million

• New Office premises (net) Rs 1000 million

• Debt at present Rs 5.0 billion

• Operating cash flows sufficient to service this debt

• Acquisitions ???

• Decided to be conservative in dividend to conserve resources foracquisition opportunities

• May maintain quantum of dividend, reduce payout %.

• Fresh equity only if a large acquisition opportunity is available

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Challenges

� India

�New categories – Making a success

� International

� Integrating acquisitions

�Managing Currency risk and volatility

� Kaya & Sundari

�Balancing growth & profitability

� Corporate

�Resourcing- Human , Financial

� Taxation - Contain climbing Effective Rates

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Outlook

• Focus on maintaining the growth momentum

– 20% + growth with some stretch in the medium term

– Immediate term – some slow down in rates of growth

• Significant cost push in the recent past

– Could have some impact on operating margins in the short run

• No significant change in the competitive landscape

• Continue to invest in established and new brands / territories

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Recognition & Awards

• Parachute is the 6th Most Trusted Brand in Bangladesh – Global Brand Forum and AC Nielsen (2008)

• BusinessWeek’s Asia’s Hot Growth Companies (2007)

– Overall rank 40th in a list of 100 companies

– Rank 4th in a list of 13 companies from India.

• CNBC-TV18 India’s Employer of Choice Awards 2007

– India’s Employer of Choice Award

– HR Excellence Award

– Best Employer in the Consumer Products and Healthcare Sector

• Kaya – Best Retailer in Beauty and Fitness Category (Sep 2007)

– India Retail Forum (Images)

• NDTV Profit - Business Leadership Awards in the FMCG (Personal Hygiene) category (July 2007)

• Marico has been rated among the Top Eight Indian Global Challengers

– Standard & Poor’s global rating of mid-size companies as on December 31, 2006.

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Recognition & Awards

• International Business - Parachute - The Gulf Marketing Review (GMR) Awards (Referred to as the Oscar of Marketing Awards)

– Best Brand Extension Award (Gold) (2006)

– Outstanding Marketing Achievement Award (Silver) (2006 & 2007)

• Asia Pacific Effie Awards, Singapore, 2008

– “Saffola World Heart Day" campaign (Bronze)

• One of India’s 10 best marketers

– Business Today (Sep 2006)

• Brand Leadership Award

– India Brand Summit 2006 (Sep 2006)

• Kaya – Retailer of The Year Award

– Second consecutive Year

– Category – Beauty & Health - India Retail Summit 2006

Thank You