1. RETAIL LEADERSHIP SUMMIT
7TH & 8TH FEBRUARY 2013
A presentation by Mr. Harsh C. Mariwala
Chairman & Managing Director
Marico Limited
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2. BOMBAY OIL INDUSTRIES
1971……..
Turnover
Rs. 5 crores
…amongst three businesses
No Professionals
… family managed
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3. Edible oils in bulk…
&
Contributing Rs. 50 Lakhs sales turnover…….
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4. BOMBAY OIL INDUSTRIES
Expanded Distribution Network & Promoted Brands
Packaging Changes
Built Organization Structure
While building up distribution simultaneously
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5. FORMATION
1990
Acquired Consumer Products Division of
Bombay Oil Industries Limited
Opportunity
to re-design the organization structure
to address skill gaps
Staffing – attracting managerial talent
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6. 6

7. DIFFERENTIATION THROUGH
A UNIQUE CULTURE
Induction of professionals
From different companies
Melting pot of diverse
cultures
Manifestation of different
styles
Need to integrate for a
common culture
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8. PROCESS FOR CULTURE BUILDING
Draft note : ‘Corporate Values’
Top Management Discussions
Work with a group of 3 levels of Managers
Communicating to members
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9. PROCESS FOR CULTURE BUILDING
Induction, training and
annual review
Combination of ‘top-down’
and ‘bottom-up’ initiatives
1991-94 : Non-workmen
1994 : Workmen
1995 : Business Associates
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10. HOW DID WE REINFORCE THESE VALUES?
Values Workshops
To understand / disseminate
Deeper meaning behind Values
Base level Values practice survey on a 4.0 point scale
Conducted in 1992
*Score of 2.82
Repeated in 1995
*Score of 3.24
Leadership buy-in critical to reinforcing Values practices
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11. BUILDING FOUNDATION OF
PARTICIPATIVE CULTURE
Organization Communication
Across locations
Group discussions
Open House
Relationship Management Program
Relationship Review
Goal Setting & Review
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12. MARICO CULTURE
OPEN Sharing of Information
INFORMAL First names – artificial barriers not there
PARTICIPATIVE Consensus, task force – group work
EMPOWERING Autonomy within direction
MERIT BASED Influence does not work – loyalty not rewarded
APOLITICAL No Gossip !!
JOB ROTATION Stimulus to organization & person
LEARNING Higher responsibilities, cross functional exposure
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13. PARACHUTE JOURNEY….
THROUGH INNOVATION
Parachute WM
created all season
usage ease
Created the coconut oil
usage explosion in
consumer packs with
HDPE
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14. PARACHUTE JOURNEY….
THROUGH INNOVATION
Parachute Flip – Top – enables ease
of identification of genuine
Parachute and leak – proofing of
pack
Market expansion through :
PCNO pouches
Parachute Mini ‘B’ Pack
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15. THREAT FROM HUL
HUL entered the coconut oil
market through the acquisition
of TOMCO
In 1999 HUL acquired
Cococare
Clear expression of
interest in category
Could Marico survive and
MNC onslaught?
Would Marico sell out?
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16. MARICO’S RESPONSE
1999 – 2000 : Nihar from HUL positioned as challenger to
Parachute :
Backed by disproportionate advertising spends
Strong distribution muscle
A mind set to be leaders in the category
Acquisition threat by Levers to take over Marico entirely
Marico shares in the stock market fell dramatically
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17. MARICO’S RESPONSE
On all fronts…
Product Promotion Distribution Our Passion
Superior “Contemporarizing” Ramping up our own Parachute Ki
product quality purity with the distribution Kasam
of Parachute Shuddhata ki Seal launched for
internal sales
Hi Value promotions
force
on Parachute
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18. OUTCOME
Nihar met with little success : Only took share
from small players
Marico acquired Nihar in 2006
Critical take-aways
Single minded focus can overcome brute force
Motivating people down the line critical in crisis
times
An emotional & psychological victory for Marico
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19. FROM A COCONUT OIL TO A BEAUTY BRAND
Innovations in the look and packaging of hair oil
Aftershower-Gels & Creams
Jasmine – Expand the
market through lighter,
fragrant oils
Parachute – Body
Lotion Therapie-First scientific
solution for Hairfall
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20. INNOVATION : THE MARICO EXPERIENCE
Role Culture – open, trust, flat, participative
Consumer in sighting – even R&D.
Mindset creation for all – training is a good medium
Prototyping
High collaboration – continuously align all stakeholders
Over commitment of resources – no escape buttons
Persistence – keep integrating new members
Beyond great ideas – need high rigor in implementation and detailed execution
Exposure to Thought Leaders
Creation of in-house facilitation
Brining in outside – travel fairs
Perpetual reinforcement – Top Management reviews of Brand plans, sales plans, workshops
Capturing ideas from Members
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21. EMERGING BEAUTY & WELLNESS PLAYER
Low margin High margin
Indian Global
Oils FMCG Products
Beauty and Wellness
FMCG Products
solutions
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22. • BUSINESS PERFORMANCE & EXPANSION
1990 2012
Brands 2 20 + Brand Extensions
Sales (Rs. Cr.) 80 4008
Intl. Buss. (Rs. Cr.) 955
Profit Before Tax (Rs..) 4.5 317
ROE 28.4%
Last 20 years
Revenue grew at CAGR of 18%
PAT grew at CAGR of 27%
Shareholder returns since IPO - 30% p.a
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23. Price Indexed to 100
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Apr-02
Dec-02
Aug-03
Apr-04
Dec-04
Aug-05
Apr-06
Dec-06
Marico
Aug-07
Apr-08
Dec-08
Marico v/s BSE FMCG Index
FMCG Index
Aug-09
Apr-10
Dec-10
Aug-11
Apr-12
Dec-12
MARICO MARKET CAP JOURNEY
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24. THE MOST AWARDED FMCG
• Kaya Ltd. won the ‘Most Admired Retailer for Health & Beauty' at the Images Retail Award
2009.
• Parachute was ranked the 2nd Most Trusted Brand in Bangladesh - The Bangladesh Brand
Forum
• Marico was awarded NDTV Profit Business Leadership Award 2009 - in the FMCG (Personal
Hygiene) category
• Parachute was awarded the Super Brand Status in the UAE by the Super brands Organization in
2009
• Mr. Harsh Mariwala wins the Talent Management Award at the CNBC TV18 India Business
Leader Awards – 2009
• Mr. Harsh Mariwala wins the Ernst & Young ‘Entrepreneur of the Year Award’ 2009 in the
Manufacturing Category
• Marico is awarded the IMC Ramkrishna Bajaj National Quality Award (RBNQA) 2009 –
Outstanding Achievement Trophy, in the Manufacturing Category
• Marico won the Silver Edge Award for Automation of Banking Transaction & PDA based Sales
Force Automation.
• Marico Case Study of implementing Red Hat Linux for SAP awarded the Red Hat Consumer
Showcase Award 2010
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25. ROLE OF CEO / TOP MANAGEMENT
Show interest in softer aspects
• Be focused - depth
• Strong belief in People
• Be open to ideas
• Operate from trust paradigm
• Build constructive “no men” and not “yes men”
• Willingness to experiment and learn from failures – fail
fast – prototype
• Agility – MBA – analysis paralysis
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26. ROLE OF CEO / TOP MANAGEMENT IN
MAKING THIS HAPPEN
LEAD – Be a Role Model
• Walk the Talk
Identify what is relevant for business success
• Prioritize
• Delegate
Get the right people on board
• Place them in roles based on strength
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27. What makes India Unique
India is Young!
Rapid Urbanisation
Rural Development
Digitisation
Global Participation in Retail
Working Women
Increased Age Span
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28. What makes India Unique
Shifting Socio-Economic Strata
McKinsey Situational Analysis
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29. What makes India Unique
Shifting Consumption Patterns
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30. What makes India Unique
Low Penetration Levels
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31. Triggers for Innovation
Culture of Innovation
Getting the right Talent
Outside In Learnings
Consumer Insighting
Leveraging Shopper
Behaviour
Leveraging Analytics
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32. Apply Conventional Thinking
and you will only come up with
Conventional Solutions.
But open your Mind
and you will find a World of
Opportunities opening up before You.
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33. www.ascentfoundation.in
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34. What is ASCENT
A “Peer-to-peer” enabling platform for Growth-ready Entrepreneurs
– CORE Model…
• Self-sustaining, Facilitated Trust-Groups of 8-12 non-competing diverse
Entrepreneurs at similar scale & stage
– With Perimeter access
• to Eco-system of Knowledge Gurus, Inspirational Role-Models & Enablers
– Eligibility Criteria (annual turnover)
• 50 Lacs (& Above) – Services
• 2.5 crs (& Above) – Manufacturing
- Selection Criteria
- Personal - Ambition to grow
- Profitable Business with Growth potential
- Willingness to learn and share
• Not for profit, Section 25 Company
– No membership fees - Funded personally
“Being an Entrepreneur can be very Lonely!”
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35. Journey, so far . . .
(9 months)
202 8,800+ crs
400+ Members
INR
60+
61
Applications Aggregate Annual Diverse
DIVERSE
20 turnover
(so far…)
INDUSTRIES
Industries
Trust Groups
Revenue Spectrum 10% 33%
50 Lacs – Women
Entrepreneurs Family Business
Age Spectrum
1,450 crs 40 : 60
23 – 56 yrs
INR p.a. SPLIT BETWEEN
MANUFACTURING & SERVICES
Welcome to the Billion $ + +
Circle of Trust ! 35

36. Road Ahead
Next
Waves
1st Wave
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37. For details & to apply visit
www.ascentfoundation.in
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