1. Business Strategies Definition
Business Strategy
The principles guiding how a business uses its resources to achieve its goals. A strategy states a
business's focus and indicates the basic steps the business will use to achieve it. The ultimate aim of any
strategy is to make money, but each company takes a different (sometimes very different) approach to
achieve this goal. Business strategies are widely studied and discussed in management consulting.
1. A business strategy, according to Rapid Business Intelligence Success, is a business plan that
takes place long-term in order to help achieve a specific goal or objective. The aim of a business
strategy is to strengthen a particular business so that its performance increases and, in turn, the
business becomes more profitable. Without a business strategy, a business has no guide to
follow and has an increased risk of not succeeding.
Significance
o A business strategy is necessary to maintain a business' performance. Business strategies
are motivating, informational and change-stimulating. If you aren't motivated to form or
complete the business strategy to see an end result, your business will most likely fail. A
business strategy is also a wonderful tool to use when monitoring how well your business is
doing over time and deciding the next step to take in your business in order to be successful.
Function
o A business strategy is used to increase the earning potential and success of a particular
business. Business strategies often have profitable results for business owners just starting
out. Business strategies can range from choosing the most profitable niche for a market to
successful ways business owners can promote a business. Many times, business strategies
are used to improve a business or make a business better than its competitors by making
use of one or more techniques.
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Planning a Business Strategy
o Like most things, business strategies require planning in order to be successful. In order to
plan a business strategy, business owners should make a list of areas where their businesses
need improvement and then brainstorm how their businesses can be improved. It is also
beneficial to analyze competition and what other similar businesses are doing that is
working for their particular market to improve their earning potential. Once a business
strategy is in place, incorporate this strategy into everyday business management.

2. Benefits
o Besides the earning potential related to a successful business strategy, business strategies
provide businesses a chance to become popular and unique in the business market. Some
business strategies also increase customer satisfaction if improvements are made.
Moreover, business owners are benefited, since a successful business strategy will remove a
particular danger a business may have of failing. Business strategies give business owners a
valuable means of avoiding mistakes and doing things right the first time.
Bad Business Strategies
o Not all business strategies are effective. Some business strategies can even hurt a business if
done the wrong way. For example, a well known business strategy is to promote your
business by taking advantage of social networks, such as Facebook and Twitter. However,
this business strategy is not effective if the business owner chooses to spam social networks
when attempting to promote the business, since this will harm the business' reputation and
the business will not receive many customers.
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History of Marico Ltd.
1988
- The Comp. was incorporated on 13th October, under the name of Marico Foods limited It obtained the
Certificate of commencement of business on 22nd November.
- The Comp. is engaged in the business of manufacture & marketing of branded personal care products,
edible oils, fabric care products and processed foods. The Company products are sold under the brand
names Parachute, Saffola, Sweekar, Marico Hair and Care, Revive and Sil.
1989
- The name of Comp. was changed to Marico Industries Limited w.e.f. 31st October.
- In December, the Comp. entered into an agreement with M/s. Rasoi Industries Limited for purchase of
its unit located at M.I.D.C. Industrial Estate, Jalgaon.
1990
- The Comp. entered into a Registered Users Agreement dated 26th September, with BOIL for use of
brands 'Parachute' and 'Saffola' for an initial period of 3 years commencing from 1st April.
1993

3. - The Comp. established a new plant at Kanjikode, Palghat District, Kerala to manufacture Parachute
Coconut Oil. This plant with capacity of 24000 tons of coconut oil per annum began commercial operation
in May.
- The products Parachute Coconut Oil, Saffola & Sweekar are manufactured at the Company factories.
The products Marico Hair & Care, Revive Instant Starch, Parachute Amla & Parachute Herbal are
manufactured on job work basis as per the Company quality specifications & under the brand names of
Company.
- The Comp. has two SSI Units namely M/s. Amardeo Plastic Industries having its factory at Mumbai.
- The SIL range of jams & food products are manufactured by Kanmoor Foods Limited [KFLs] & marketed
by Company.
- Saffola won the Most Outstanding `Brand of Year' Award instituted by the Advertising Club of Mumbai.
1994
- Agreements dated 21nd February 1994 & 16th November 1995 between the Comp. & The Bombay Oil
Industries limited for using the Trademark 'Parachute' & Saffola'.
1995
- The Comp. has acquired the Brand `SIL' from KFL in March for an aggregate consideration of Rupees
Three crores.
1996
- Memorandum of Understanding dated 2nd January, between the Company and Karvy Consultants
limited agreeing to act as Registrars to the Issue.
- In March, the Comp. made a fresh issue of 10,00,000 equity shares of Rs.10/- each, at a premium of
Rs.165/- per share, simultaneously with an offer for sale by promoters of 26,25,000 equity shares of
Rs.10/- each, at a premium of Rs.165/- per share.
- The Comp. decided to leverage on the strong equity of Parachute brand through appropriate extensions.
Accordingly, `Parachute Herbal' was launched.
- The Total Quality Movement within the Comp. has gathered speed and now embraces virtually all
locations.
- The Comp. has made major investments in information technology, a process which began four years
ago. Presently, all the establishments are covered by information technology & networked with the
Corporate Office.
- The Comp. has acquired a formidable reputation for its HR practices and has been recognised by
National HRD Network in the recent past.
1997
- Marico Industries has extended the Sweekar oil brand to introduce two new refined oils-Sweekar cotton
seed oil & Sweekar mustard oil.

4. - The Comp. has set up a factory near Jalgaon to process the cotton seeds & another factory near Jaipur
for mustard oil.
- The Comp. has launched branded refined mustard oil & cotton seed oil refined under its brand name
Sweekar Orange.
- Marico Industries has been one of few success stories in the fast-moving consumer goods segment.
- The Comp. has announced the extension of Parachute brand name to other products in the hair care
segment, thus making it an umbrella brand.
- Marico Industries has launched three new variants of coconut oil - light oil, nutra sheen liquid & nutra
sheen creme-under the brand name Parachute.
- Marico Industries Limited, the Rs. 400 crore consumer goods company has been selected as a Top
Performing Global Growth Comp. from India by the World Economic Forum, New Delhi.
1998
- The Comp. was originally a join venture between a Lever group company & Nissin of Japan, & its
products were distributed through HLL channels.
- Marico Industries Ltd has taken the lead in launching a refined oil in the soya segment with a new
variant called Sweekar Refined Soya Oil.
- The Comp. has recently launched a new variant in Postman called Sona, which is a sunflower oil.
- MIL launched an innovative fabric care product named Revive ColourFix which helps to fix the colour on
cotton fabrics.
- The Comp. has recently extended the brand equity of Parachute to coconut-based hair grooming
products like Parachute Lite & Parachute Nutra-Sheen. The Comp. is also considering testing Parachute
branded products in international markets like Europe & America.
1999
- Marico Industries Ltd is focussing on relaunching its SIL brands in its `healthcare' business, after a
successful repositioning of its Saffola & Sweekar brand.
- The Comp. is planning to introduce a range of vegetable soups.
- The Comp. is planning to set up a wholly-owned subsidiary in Bangladesh shortly.
- Marico Industries [Maricos] & The Bombay Oil Industries [BOILs] have reached an understanding in
terms of which the brands, Parachute and Saffola are being assigned to Marico.
- ICRA has retained the `A1+' rating for Rs. 7.5-crore commercial paper programme of company.
- The Comp. is planning to set up a local manufacturing unit is several other SAARC countries.
2000

5. - The Comp. launched Parachute Dandruff Solution Coconut Hair Oil in Calcutta, the first oil to combine
coconut oil with antidandruff properties in a single hair oil.
- The Comp. has launched the branded coconut oil in a tamper proof seal pack with a flip top cap.
- Marico Industries limited has a tied up with the International Association of Trichologists [IATs], a non-
profit organisation based in Australia.
2001
- Marico Industries has launched the Revive Anti-Bacteria starch.
2002
-Marico Industries Ltd has informed BSE that the Board approved the Issue of bonus redeemable
preference shares of aggregate face value of Rs 290 million. Ratio -- 1:1 on equity enhanced after bonus
issue of equity shares made by Board on April 18, 2002 & approved by shareholders on July 18, 2002.
The rate of dividend is 8% p.a.Increase in authorised share capital of Comp. from Rs 300 million to Rs
600 million.
2003
-Marico Industries Ltd have appointed Erehwon consultancy firm for initiatives of innovation in marketing
& management.
-Marico Industries have acquired a controlling equity interest in Sundari LLC.
2004
-Marico Industries' popular edible oil brand 'Saffola' launches a fresh advertising campaign. The
campaign by Grey Worldwide has a new tagline, Aaj se jeene ka andaaz sudhariye [Improve your lifestyle
todays], urges every Indian to take up healthy lifestyle. Earlier Saffola campaign used the tag line -
Saffola Swasth ParivaarKe Dil Ki Dhadkan
-High Court of Judicature at Bombay approves the Scheme of Amalgamation of Anandita Arnav Trading
and Investment Private Ltd, Madhav Nandini Trading and Investment Private Ltd, Rajvi Rishabh Trading
and Investment Private Ltd & Rishabh Harsh Trading and Investment Private Ltd with Marico Industries
Ltd on February 12, 2004
-Announces 1:1 bonus issue
- Marico Industries launches 'Saffola Gold, a blend of Ricebran & Kardi oils in a 70:30 ratio, which has
dual benefits of lowering cholesterol & enabling food cooked in it to absorb lesser oil
-Marico industries has announced its foray into the beauty products segment with the launch of Silk-n-
Shine, a post-wash haircare product
2006
-Marico acquires HLL`s Nihar for Rs 216 cr
2007

6. -Marico Ltd has appointed Mr. Anand Kripalu as an Additional Non-Executive Director on the Board of
Directors of Company.
- The Comp. has splits its face value from Rs.10/- to Rs.1/-.
2008
-Marico Limited has appointed Ms. Rachana Lodaya- Legal Manager, as Comp. Secretary & Compliance
officer of Company, with effect from August 01, 2008.
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Marico
Parent Company Marico
Category Consumer Products
Sector FMCG
Tagline/ Slogan Be more everyday
USP 1 out of 3 Indians uses a Marico product
STP
Segment Products and services for daily needs
Target Group Every Indian household especially the middle class
Positioning With Marico, your every single day needs are fulfilled
Product Portfolio
Consumer Products
1. Parachute 2.Hair & Care
3. Mediker 4.Revive
Brands 5. Kaya Skin Clinic

7. SWOT Analysis
1. Excellent distribution network and product availability
2. The product portfolio of Marico has brands covering Edible Oil, Hair
Oils, Skin Care, Fabric Care, etc.
3. Popular brands, good brand visibility and excellent advertising of
products has led to strong brand loyalty
4. Experience management and good R&D
5. Marico is present in more than 25 countries across Asia and the
African continent.
6. Marico reaches over 2.5 million outlets and around 130 million
Strength customers
1. Market share is limited due to presence of other strong FMCG
brands
2. Marico products has stiff competition from big domestic players
Weakness and international brands
1. Tap rural markets and increase penetration in urban areas
2.Mergers and acquisitions to strengthen the brand
Opportunity 3.Increasing purchasing power of people thereby increasing demand
1. Intense and increasing competition amongst other FMCG
companies
2.FDI in retail thereby allowing international brands
Threats 3. Competition from unbranded and local products
Competition
1. ITC
2. L'Oréal
3. Nirma Ltd
4. HUL
5. Colgate-Palmolive
6. Procter and Gamble
Competitors 7. Dabur

8. Turnaround strategy: Smaller stores are planned under Kaya with more focus on products than services.
By spinning off its skin care services business, Marico hopes to bring back fast growth to
its FMCG business.
February 10, 2013:
Harsh Mariwala, Chairman and Managing Director of consumer goods company Marico Ltd,
describes his penchant for taking business risks as removing the „escape buttons‟.
Once in a venture, there are no exits. At Marico, he believes in celebrating failures and actually hands
out increments to managers who have handled innovative businesses that have failed. The same
benchmark could be in use for the Kaya skincare business that was recently spun off as a subsidiary.
Keen to enter the retail business a decade ago, the entrepreneur decided to stay away from the
regular modern retail business. Instead, he went niche with the concept of skin-care solution clinics
under the Kaya brand.
The year was 2003 when Marico was a cash-rich, debt-free company and Mariwala could afford to
take risks. It was unconventional for an FMCG company to foray into retail services then as it was
unrelated to its original line of business.
“As there was a lot of interest in retail during that time, we decided to try out niche retail in the area
of dermatology as the cost of hiring a dermatologist would be much cheaper in India. After some
quick market research, we decided to set up a single incubation cell with a manager who would
report to me directly and head a small, entrepreneurial team,‟‟ reminisces Mariwala, quite aware at
that time that it was going to be a „long battle‟ in the retail business.

9. RESTRUCTURING
With the help of his friend Asif Adil (former Diageo MD) and his New Jersey-based financial and
advisory services company, Marico floated Kaya Skin Care Solutions with 24 per cent stake held by
Adil (subsequently bought out). Today, after a decade, the FMCG major is hiving off Kaya as a
subsidiary and listing it as Marico Kaya Enterprises (MaKe) to give a fresh impetus to the „yet-to-be-
profitable‟ retail business.
The restructuring has been done to consolidate its FMCG business by merging its consumer product
and the international businesses while keeping its skin care business as an independent entity, which
will take effect from April 1.
Today, Kaya contributes seven per cent to Marico‟s Rs 4,000-crore turnover. Kaya reported profits in
the September quarter of this financial year after a loss in the last financial year.
It has been steadily increasing its offerings under skin care solutions and technology-led cosmetic
dermatological services and products across 107 clinics, of which 82 are in India, and the rest
overseas. It has also acquired a profitable company in Singapore — Derma Rx, and has four Derma
Rx Clinics in Singapore and Malaysia.
„NOT A MISTAKE‟
“The skin care solution was a different business for us and we don‟t think we made a mistake by
entering it. We did go through the learning curve and the insight we got was that we ramped up too
fast. There will continue to be challenges with competition from smaller players with no overhead
costs,‟‟ explains Mariwala.
In the past decade, Marico‟s Kaya business has witnessed high-profile employee exits, including that
of an MD. “Kaya was being clouded by Marico‟s policies and did not have the required retail mindset
for the business. It was not being run as a retail company, coming as it did from an FMCG
background,‟‟ recalls an ex-employee of Kaya.
“After the announcement of Kaya‟s demerger, Marico‟s stock has been doing well and the return on
equity will improve. While the focus would go back to the FMCG business, there will not be any
major difference in the way the company is functioning,” says Abneesh Roy, Associate Director,
Edelweiss Capital.
After the demerger, Marico shareholders will be issued one share of Marico Kaya Enterprises with a
face value of Rs 10 each to be issued at a premium of Rs 200 for every 50 shares of Marico with a face
value of Re 1 each.
As Milind Sarwate, Group CFO, Marico, explains: “It has been a decade and Kaya did look at
expanding operations but it did not meet our expectations. We would be partitioning the balance
sheet of the two companies within the group and there will be no cross-holding between them.”
With this, Marico Kaya Enterprises will not carry significant debt on its balance sheet and will start
life on a clean slate. Kaya‟s losses will also get transferred without being a drag on Marico‟s
profitability.
While Kaya becomes a retail-focused entity, Marico will get a chance to consolidate its FMCG
business in India and abroad.

10. “The demerger will facilitate the consolidation of Marico‟s FMCG business in India and overseas.
Now that the international FMCG business has achieved certain scale, we see synergistic benefits
with the Indian business.
“This has become more pronounced after the recent acquisition of the youth portfolio from Reckitt
Benckiser. There can be benefits in areas such as buying of raw materials and packing materials and
cross-pollination of portfolio,‟‟ says Mariwala. (Exactly a year ago, Marico bought the consumer
brands business from Reckitt, which in turn had acquired it from Paras. These include brands such
as Set Wet and Livon, among others).
STRATEGIC INVESTORS
As for the Kaya business, it is likely to look at strategic investors to take the business forward as in its
initial days when the business was started in 2003.
“We are open to inputs, financial or strategic, for growing the Kaya business. But investment in Kaya
will continue. We are eyeing break-even in a couple of years but are open to resetting the target
depending upon the long-term needs of the business,‟‟ he adds.
But it is the long gestation period that took its toll on Marico. As Sunil Alagh of SKA Advisors, an
independent marketing consultancy, says, “While Marico made no error of judgment entering the
skin care business, it was the long gestation period which pulled down the bottomline of Marico‟s
core FMCG business. The decision to demerge is, therefore, a prudent one as it will lead to greater
focus on the skin care business by a different team, and also provide an option of remerging, once
this business becomes profitable.”
Marico is now on its way to proving that it can make a success of its retail business.
As Mariwala says, “After all it was our FMCG roots which provided a stronger foundation in the
consumer insights area. It was this self-belief on which we entered the skin care business. I do not
see any room for self-doubt. It is a matter of tweaking the execution and hopefully the new
entrepreneurial way of running the business will yield better results.‟‟
After all, Mariwala believes in removing all the „escape buttons‟ when in a new line of business.
More focus on products
In spite of Kaya‟s top-line growing, the same stores sales growth had slowed down to single digits.
But now with smaller stores planned under Kaya with focus more on products than services, a
turnaround in the skin care business may be imminent.
Five prototypes of Kaya Skin Bars are being planned in cities such as Delhi and Bangalore and these
would stock products rather than offer skin care services. The Kaya range is also being offered at
counters in Lifestyle stores.
“As we grow in the skin care business, we expect Kaya products to contribute almost 60 per cent of
the turnover while the balance would come from services,‟‟ says Ajay Pahwa, CEO, who will move out
of Kaya by March-end when Vijay Subramaniam takes over.

11. The Kaya brand would be adding 18 new skin care products and increasing the number of stock
keeping units to 54 with its extended Derma Rx range, which is a premium one, leading to higher
margins.
A recent report on the Indian consumer by Deutsche Bank states “For Kaya there is going to be light
at the end of the tunnel. The format may be some time away from profitability but the business is
showing strong growth. The focus on product sales has led to higher footfall through a shift from
„cure‟ to „prevention and cure‟ positioning. The smaller store format and the Derma Rx acquisition
are going to be the key reasons for the turnaround. The revenue per quarter of about Rs 40 crore has
jumped to Rs 91.5 crore in the second quarter of 2013.‟‟
purvita@thehindu.co.in
Future Strategy at Marico
Tejas: In these times when the buzz in retail is about countries like India, China and Vietnam, what
are the specific reasons why Marico is acquiring in countries like South Africa, Egypt and
Bangladesh?
HM: I think the primary driver for strategy at our end is growth. We need to drive growth and
growth from wherever growth can come in- be it India or other countries. Our strategy of going
international is to be in markets where can we add value and also those markets in which we can
emerge as market leaders. This value can be in terms of brand building, distribution and so on.
There is a whole rationale of going into these countries. It is because we see ourselves capable of
becoming market leaders and there are opportunities to leverage our strengths.
What you do need to realize here is that global expansion is not being done at the cost of Indian
business. There is a clear organization structure, a clear demarcation in terms of responsibility, a
CEO of domestic business and a CEO of international business. So there is no conflict of interest
in this case in the sense that if we are doing one it does not mean that we cannot do the other.
Tejas: You new initiative, Kaya, is one of the very few examples where an FMCG player is going into
solutions business. Why has Marico done this? Do you think this trend will continue?
HM: You are right. I think it is one of the only examples that I know of where a product player
has gone into what we call solutions. While I am not aware of the strategy of other players we will
be involved in going more and more towards solutions. There is a very strong reason for it. It did
happen a little bit by chance also but there was always a desire to go into solutions. If you have a
problem of your skin say pimples you will just go buy a cream. As opposed to this when you go to
Kaya you will get customized treatment by the doctor then you will have services, products and a
special recommended diet. The whole 360 degree approach to the skin is far more effective that
just using a product. So the belief is that if you need to address issue of skin or whatever else you
are doing - hair wellness etc., you can address it far more effectively through a 360 degree
approach that is customized to the customers' needs.
Another reason was that we wanted to enter the skin space and we felt that if we only went
through the product route it will be difficult for us to become market leaders in this highly
competitive market. So we can actually take it on through a service route and create a brand. And
then we also have products under Kaya.
Core Competence:
Core Competence Market leadership Wide distribution channel- Access to rural market Converted commodity into
product Created new niche categories for growth- E.g. Revive and Mediker

12. Achievements:
Achievements Marico’s “ Saffola Heart Day ” campaign won a Bronze at Asia Pacific Effie, Singapore 2008 Kaya -
Best retailer in the Beauty and Fitness category, India Retail Forum, 2007 One of India’s 10 Best Marketers Brand
leadership award at the Brand Summit, 2006
Marico to sell stake in Sundari
TNN Apr 23, 2009, 01.57am IST
MUMBAI: Marico, which owns leading brands like Parachute and Saffola, is divesting its
entire stake in wholly-owned subsidiary Sundari LLC, which is engaged in the
manufacturing and marketing of skincare cosmetics and accessories, primarily in the US
and Europe.
The company said it has agreed to sell its stake in Sundari LLC to US-based Wellness
Systems (WS), for an undisclosed amount. Wellness Systems is a limited liability company
promoted by two of Marico Group's senior managers who were in charge of the Sundari
business.
A majority of Sundari's revenue is generated from B2B sales to spas located within luxury
resorts and hotels globally. Marico had acquired a controlling interest in Sundari LLC in
2003, and has since then made investments to grow the business.
However, considering that Sundari constituted only a small share of Marico's revenue, the
divestment is a logical part of Marico's global strategy. The company's geographic focus has
come increasingly from Asia and Africa.
Marico recorded a turnover of Rs 2,388 crore for the year-ended March 31, 2009 (FY09), a
growth of 25% over FY08. Almost the entire growth during the year was attributable to
organic growth, of which volume growth comprised 12%.
During FY08, Marico made a one-time profit of Rs 10.6 crore on the sale of its Sil business.
Moreover, in FY09, the company has booked a one-time extraordinary loss of Rs 15.03 crore
on the sale of its Sundari business. Profit after tax was Rs 188.7 crore, a growth of 11.6%
over FY08. However, the growth, net of extraordinary items, was 15.7%.
The company said it has weathered the economic slowdown leveraging its robust flagship
brands Parachute and Saffola, both growing in volume in double digits.
HC slaps fine on Marico
PTI May 21, 2008, 02.30am IST
KOLKATA: The Calcutta High Court has asked FMCG company Marico Industries to pay Rs
52,000 to rival Dabur after dismissing a petition of the Mumbai-based company seeking the

13. latter to stop advertising campaign of its product Vatika hair oil. "The plaintiff (Marico)
would pay costs assessed at Rs 52,000 to the defendant (Dabur)," said Justice Sanjib
Banerjee.
Marico sells processed food unit
Bloomberg Mar 12, 2008, 12.00am IST
Marico, the country's biggest maker of coconut hair oil, agreed to sell its processed foods
division Sil, to Denmark's Good Food Group for an undisclosed sum on Tuesday.
Good Food's Scandic Food India unit will retain the employees at Sil, Mumbai-based Marico
said in an e-mailed statement on Tuesday.
The processed foods business makes jams, sauces, baked beans, Chinese vinegar and other
products.
Marico rose 4.7% to Rs 65.3 on the Bombay Stock Exchange on Tuesday.
The stock has fallen 4.9% this year, compared with Sensex's 21% decline.
Marico buys Enaleni arm for Rs 52cr
TNN Nov 1, 2007, 12.43am IST
MUMBAI: Marico on Wednesday announced the acquisition of the consumer division of South Africa's
Enaleni Pharmaceuticals for SA Rand (ZAR) 92.8 million (about Rs 52 cr).
Marico acquired this business through purchase of 100% shares in Enaleni Pharmaceuticals Consumer
Division (EPCD), an Enaleni subsidiary. The company plans to finance the acquisition through a US dollar
denominated term loan.
ToI was the first to report about Marico's interest in Enaleni's consumer division. It had, on October 2,
reported that Marico had emerged front-runner in the race to acquire the business from Enaleni. Marico
clinched this deal in a competitive bidding process, wherein some South African companies and India's
Godrej group were the interested parties.
The Durban-based EPCD is present across hair care segments. Its current annualised turnover is about
ZAR 95 million and it operates three leading brands—Caivil in premium ethnic hair care, Black Chic in
VFM hair care, Hercules in OTC Health Care.
On the acquisition, Marico Group chairman Harsh Mariwala said: "It provides us an opportunity to
participate in the rapidly growing ethnic consumer products market in South Africa. It helps us extend the
Marico footprint to a new geography with potential, thus taking us a step further towards becoming a
global player in beauty and wellness."
The market for ethnic hair care and relevant OTC healthcare products in South Africa is estimated to be in
the region of ZAR 1.1 billion (about Rs 600 crore), growing at over 20%. EPCD's market share in relevant
segments of hair care is about 5-6%, going up to 9-10% in OTC segments.

14. Marico leads race for South Africa's Enaleni
Namrata Singh, TNN Oct 2, 2007, 01.19am IST
MUMBAI: Marico is said to have emerged the front runner in the race to acquire the consumer products
division of South African company Enaleni Pharmaceuticals.
Sources said Marico's bid had been shortlisted by Enaleni because it had prima facie outbid other
companies in the fray, including the Godrej group. Among other South African companies in the race was
AMKA Products.
While Marico CMD Harsh Mariwala declined to comment, sources said Marico's bid stands at around
Rand 100 million ($15 million) for Enaleni's consumer business. Enaleni, said sources, expects bids in
excess of Rand 60-70 million(around $10 million) for the business.
Though the bidding process has been on for almost a month now, Enaleni is expected to take a while
before finalising the winning bid.
If this goes through, it will be Marico's third acquisition in Africa. The maker of Saffola edible oil and
Parachute hair oil had earlier acquired two hair care brands in Egypt — Fiancee and HairCode.
TOI had reported in its edition dated September 14, that Marico had joined the race to acquire the
consumer business of Enaleni. On September 4, TOI had reported about Godrej Consumer Products
initiating talks to acquire Enaleni's consumer business.
Enaleni has a market capitalisation of approximately 1.5 billion rands. It is one of the top 10 pharma
companies in South Africa.
Marico joins race for SA's Enaleni
TNN Sep 14, 2007, 12.20am IST
MUMBAI: The race to acquire consumer and vitality business of South Africa-based Enaleni
Pharmaceuticals is hotting up with more players joining the bidding process.
It is learnt from sources that homegrown FMCG major Marico, along with two other South African
companies, including a local firm AMKA Products, is throwing its hat in the ring. This is in addition to the
bid being submitted by Godrej group company, Godrej Consumer Products (GCPL).
TOI had reported on September 4 that GCPL had initiated talks to acquire the consumer products
business of the South African pharmaceuticals company.
According to sources, with the bidding process likely to close this week, the companies are said to be
considering putting in aggressive bids. Marico CMD Harsh Mairwala declined to comment.
Mariwala sells stake in Marico
TNN Jan 24, 2007, 01.25am IST
MUMBAI: The Mariwala family — promoters of the closely held Rs 1,150 crore FMCG company Marico —
has diluted its holding in the company by a little over 3% to 63.5% in the December quarter.

15. CMD Harsh Mariwala's holding, which forms the bulk of the promoter holding in Marico, has declined
marginally during the quarter to 51.7%. The reason behind the decline in promoters' holding in the
December quarter is the QIP issue to non-promoters.
Marico had privately placed 29 lakh equity shares through the QIP route to raise Rs 151 crore. This also
raised Marico's equity share capital to Rs 60.9 crore and brought on board a fresh cross section of FIIs
and Mutual Funds.
The FII holding in Marico has risen to 16.7% in the December quarter from 13.3% in the September
quarter. Given that the company was active on the acquisitions front, the QIP issue was undertaken to
raise debt at a short notice.
Close on the heels of acquiring Fiancee of Egypt, Marico acquired HairCode, a haircare brand in Egypt, in
the December quarter. In order to bring in additional interest from retail investors and contribute
towards enhancement in the liquidity in the Marico scrip on stock exchanges, the board of the company
has approved the sub-division of the nominal value of each equity share of the company from Rs 10 into
10 equity shares of nominal value of Re 1 each.
Adani Wilmar eyes Marico brand Sweekar
Namrata Singh, TNN Jan 3, 2007, 12.53am IST
MUMBAI: Adani Wilmar, the 50:50 joint venture between the Adani group and Wilmar Holdings of
Singapore, is said to be exploring the option of acquiring Marico's national refined sunflower oilbrand —
Sweekar.
According to industry sources, Adani Wilmar has been approached by merchant bankers and the joint
venture company is not closed to the idea of acquiring brands even as it charts its organic growth strategy
with leading brand Fortune refined edible oil.
When queried about its interest in Sweekar, Adani Wilmar assistant VP (sales and marketing) Angshu
Mallick told TOI: "We will explore it."
He said that the company was not averse to buying any brand, but it will have to first ascertain whether
the brand has good synergistic fit in the company's portfolio and the markets it operates in.
Fortune, which is present as a refined soyabean oil, sunflower oil, groundnut oil and mustard oil, is said to
have a market share of 18% in the entire edible oil market.
Sweekar contributes around 8% to Marico's turnover of Rs 1,000-plus crore, which makes it a Rs 80 crore
brand. Industry analysts peg Sweekar's valuation at anywhere between Rs 100-130 crore.
Besides Fortune, Adani Wilmar also has in its kitty brands like Raag (soyabean and mustard oil) and
Jubilee refined oil.
In a scenario where companies like Hindustan Lever and ITC have exited the low-margin edible oil
business, Adani Wilmar's edible oil business is said to be driven mainly by large volumes.
Meanwhile, Marico's reasoning behind keeping Sweekar "on float" stems from the fact that the brand
delivers low margins and is a drag on its overall margins. Marico is thus focusing on obtaining certain
minimum margin from Sweekar and, if required, it will sacrifice volume growth for that reason.

16. Marico CFO Milind Sarwate had earlier told TOI that divestment would be only one of the various ways in
which one could deal with low focus brands. The Rs 17,000 crore Adani group is one of the fastest growing
corporate houses with business interests in ports, trading, BPO and retail among others.
Marico to acquire HairCode
TNN Dec 21, 2006, 12.47am IST
MUMBAI: Close on the heels of acquiring Fiancie, Marico Ltd has announced a strategic
alliance with the Cairo-based Pyramids group for acquiring HairCode, a leading haircare
brand in Egypt.
The alliance, for an undisclosed consideration, envisages for Marico, direct investment in a
company with manufacturing facilities in Egypt, apart from the acquisition of the brand
HairCode. The Pyramids Group will continue to distribute the brand for the medium term
and has agreed for a non-compete in certain segments.
The alliance parties expect that they can grow the brand's turnover from its current base to
over Egyptian Pounds 50 million in the next financial year. Marico had recently raised Rs
150 crore through the QIP (qualified institutional placement) route. This was to enable the
company to raise debt at a short notice to fund any acquisition opportunity by restoring the
balance in its financial gearing.
Marico CFO Milind Sarwate said:"This alliance makes Egypt an important geographical
segment of Marico's operations. This helps us in leveraging the resources deployed in the
country optimally. Egypt is a profitable market and we have made an entry into the country
at the right multiples."
Marico buys Egyptian co Fiancie
TNN Sep 13, 2006, 11.43pm IST
MUMBAI: The Rs 1,150 crore Marico group on Wednesday acquired Egypt's hair-care market leader,
Fiancie, from Ready group for an undisclosed consideration.
This is Marico's fifth acquisition in 18 months. It not only marks the company's direct entry into Egypt,
but also provides a fillip to its international operations.
Marico's international business turnover during FY 2006 was Rs 117 crore — about 10% of the group's
revenue. Fiancie range includes value-for-money creams and hair gels.
As a market leader, Fiancie commands a share of 20% of the Egyptian pound 215 million (Rs 170 crore)
hair care market.

17. The deal gives Marico access to the manufacturing and sales infrastructure for the brand, which has been
developed by the Ready group over the last 15 years.
Marico group chairman Harsh Mariwala, said: "This footprint in Egypt will help us widen our strides in
the international hair care market."
With Fiancie under its belt, Marico could target a turnover in the range of Rs 50-55 crore from Egypt
during the next fiscal.
The consideration for the deal will be paid out over the next six months in two tranches, based on brand's
performance.
Marico, using a short-term loan facility, has already paid one out. Marico would now take a fresh look at
its financing pattern and would modulate the debt and equity mix suitably.
The meaning in Marico's methods
Saugata Gupta, CEO (Consumer Products), on buying and shedding brands, core
competence and consumer insight.
Like many of its peers in the consumer goods industry, Marico, maker of blockbuster brands such
as Saffola and Parachute, has been on an acquisition binge abroad, taking over brands in South
Africa and South-East Asia. In this interview at the Marico office in Bandra, Mumbai, Saugata
Gupta, CEO, Consumer Products, Marico Ltd, discussed the rationale behind these acquisitions,
Marico's growth strategy, commodity price fluctuations and the impact on its brands,
diversifications and much else. Excerpts:
Marico has seen a spate of acquisitions abroad. Are you looking at bringing those
brands into the country?
There's a huge threshold level of investment in creating a brand. To an Indian consumer, whatever
it's called doesn't matter, it's new anyway. What it has done is given us access to certain product
categories (in male grooming) and should we decide to participate in the category, it gives us access
to technology and shared sourcing. Common distribution, media footprint and consumers determine
a brand launch. But, I don't think we have acquired scale right now.
Is this a strategy that other Indian FMCG firms are pursuing? Acquiring companies in
Africa and South-East Asia? Does that insulate them from Indian competitive
pressures?
All of us are looking at multiple pillars of growth. If you look at Africa, there are lots of similarities.
Category penetration is low, the scope for potential growth, also, it's a complex market; one of the
competencies of Indian managers is to work in a slightly chaotic environment. The distribution
system is still not organised. Also, the market is still not competitive. These are the factors driving
acquisitions. It's still not a focus market for many MNCs, but a focus market for Indian companies.
While complexity is there, the relative competitive intensity being low, we're investing ahead of the
curve.
You have bought brands in categories in which you are not present in India, right?

18. Essentially it's in nourishment and styling. In the case of Vietnam, there are shampoos and gels; in
South Africa, it's a lot of ethnic hair care products. Here we have a wider range and more
sophisticated products, so there is obviously an opportunity.
If you do bring in products, would they be under the Parachute brand, where you
already have male grooming products, or a new brand?
That will depend on the size of the opportunity. For me, it makes strategic sense if the existing power
brands are stretched to the extent possible.
What about taking your brands to those markets?
Parachute is already in the Middle East market. Again, it's the same thing, do you want to use an
existing brand name and stretch it? For example, we have Code 10 in the South-East Asian markets,
which we bought from Colgate, it is available in surrounding markets apart from Malaysia. I think
what is interesting is tech formats and category knowledge that will help, not necessarily the brand
transfer. Our approach is essentially market-forward and not necessarily category-forward. But,
having said that we have a method by which we focus on certain categories. While we have been
defining beauty and wellness, we are ensuring that we are getting critical mass in that.
What about the other thrust area for you, functional foods? You
launched attaadditives earlier?
Yes, we launched oats, which is doing well. Atta additives is small, but we are serious about foods
and are looking at other stuff in health foods. You will see some more this year.
All your forays in food will be under the Saffola franchise?
Health food will be under Saffola. I don't see Saffola getting into indulgence, but we will get Saffola
into areas where taste and family values are involved.
You said you would look at products that are in the ready-to-cook area, not so much
ready-to-eat?
I was talking in general about the market, not particularly about Marico. In India, I don't see RTE
products having a big market, because there is still a concept of „fresh', there's labour available and
the housewife would still like to prepare the food. Now, because of time and convenience, what she
doesn't like is negative labour, it could be cutting vegetables, preparing a masala, there's a huge
market for intermediate foods. For example, the breakfast category has grown on the health and
convenience plank. There's an increase in double-income families and people are time-poor in the
morning. You can have help cook a meal later in the day, but you won't have help cooking breakfast.
Talking generically, that's why the breakfast category has grown.
Has Marico's attempt been to reduce the dependence on the commodity cycle? You
sold Sweekar, but Parachute too remains prone to these cycles, doesn't it?
There is a difference between Parachute and Sweekar. Parachute is a strong brand and can command
a premium, there would be some fluctuations in margins but our ability to pass on to the consumer is
reasonably high. What is most critical is to provide certain values to consumers, long-term benefits,
and not look at short-term profits. If there is commodity inflation, we need not pass on everything to
the consumer. Parachute is a far stronger brand. Sweekar was different — it was a combination of

19. two things: One, we didn't see a huge growth opportunity. It was a drag on our bottomline and
growth. In edible oil there are only two business models: extremely high levels of volume and
economies of scale, like what Fortune has achieved. But, the other is the Saffola model, which is a
strong brand and has the ability to command a premium. So you have to continuously innovate. If
you're in the middle, you are stuck, you are neither a volume player or a premium one. Sweekar, we
were looking out for buyers for a long time. At the end of the day, we were ensuring that in the last 3-
4 years, we were maintaining the brand value, not destroying it and it contributed 6-7 per cent of our
revenues. Obviously, there is a right time when we got out of it. At no point was there desperation to
sell.
You are not showing an aversion to buying or selling brands — you've acquired many
but also sold brands such as Sil and Sweekar?
The reason is that Sil didn't give us strategic fit at that point of time.
But, weren't processed foods the way to go? And Sil as a brand had gained some
traction?
We have said that we will be in the beauty and wellness space. Apart from that, Sil was a marginal
player. If you don't have a certain scale or brand investments, you have to make choices. One of the
things we did in the last two years, which is beginning to help us, is focus. We were chasing too many
small things and too many initiatives across the organisation. One of the things we decided was to
have a „stop doing' list! Even the brands which we are supporting or putting in our investments — we
had a few big bets, and are persisting with it. Opening up multiple channels, obviously the escape
button is up. That's one key strategic shift we've done and we've seen results and will continue to do
so.
The mistakes people make, if you look at a growing market such as India, you will come up with the
same list of categories which are attractive. What is critical for any organisation is the ability to win
in that category and that happens when you have shared customers and supply chain. People don't
look at competencies. One of the reasons we withdrew this brand called Sparsh … the product was
wonderful but we didn't have a right to win because for its distribution, the key influencers were
paediatricians and mothers, but our target group did not have shared consumers. The mother wants
a safe product, she does not want to experiment.
For example, I have about 25 lakh Saffola households. Now, if I can cross-sell even to 10 per cent of
this, I have a Rs 250-crore business. We have power brands and a set of loyal customers. The extent
of extensions possible, that we need to see.
Yes, we have to reduce our dependence on commodities but that doesn't mean I can get into every
category which looks attractive. We need the entire competencies across. Many companies fail
because they think they have been successful in one category, they can move on to others without the
real ability to win.
So, a lot to be said for C.K. Prahalad and his core competency concept?
A lot of companies falter in their growth; any sector which has heady growth, process and capability
follows that growth. But in a sector which is reasonably stable, process and ability should lead
growth, otherwise, growth falters because of a lack of processes. So, they are critical. For us, the India
business is Rs 2,000 crore, from 2003, our journey has been upward from Rs 500 crore, we had to
have the next level of organisational capability to drive upwards. We believe a strong foundation is

20. required for the next level of growth. Culturally, we prefer doing and talking! That's why we say we
are boringly consistent, but then we are growing at 20 per CAGR. The exciting news is less, but that's
okay, as long as the pace of growth is good. The focus is something we believe in.
What about growth in the hair oil category? Is it set for a slowdown as consumers cut
back on the practice of oiling their hair?
If you look at the value-added category of hair oil, in certain top-end markets there is a reduction in
frequency, but if you really look at it, as a category it has grown the same way / rate as any other
personal care category. People have an inherent belief in the nourishment category. A lot of usage
has moved from post- to pre-wash. This is something which we are cognisant of and therefore our
endeavour is to improve benefits. Specifically, for hair fall, we've introduced a product that is doing
well in the South, Parachute Advansed for hairfall; developed along with the Arya Vaidya Sala.
Marico to demerge its services business Kaya into a
separate listed company, this move can help improve
valuations
ET Bureau Jan 8, 2013, 04.00AM IST
(The move will also help centralise…)
MUMBAI: Packaged consumer goods firm Marico plans to demerge its services business Kaya into a
separate listed firm in a move that could help improve valuations of the parent company that has been
weighed down by the weak performance of its services arm.
"Kaya requires a completely different mindset to grow. So we have taken off the Marico hat from Kaya
and unshackled it from the Marico rules," Harsh Mariwala, chairman at Marico, said. "It will have the
wealth creation opportunities present in Marico and help establish an entrepreneurial culture that will drive
growth."
The move will also help centralise the leadership structure and offer different career paths and larger
roles to the Marico talent pipeline, Mariwala said. Saugata Gupta, who currently heads domestic
consumer business, will lead the overall FMCG firm as CEO, while international business head Vijay
Subramaniam will take over as CEO of Kaya, effective April 1.
Marico Kaya will be listed separately on the Bombay Stock Exchange and the National Stock Exchange
and will have its own board of directors distinct from Marico's board. The maker of Saffola and Parachute
oil will also combine its consumer products business and international business group for operational cost
benefits. Analysts consider it a positive move for investors who have been raising concerns about Kaya's
business model for some time now.
"There were some reservations from minority investors on Kaya's performance for the last 2-3 years and
splitting the business should help Marico's valuations," Nitin Mathur, consumer research analyst at
Espirito Santo Securities, said. "However, re-rating of the stock will happen only if on-
ground investments in terms of advertising or marketing will be accounted for separately," he added.
A decade-old Kaya, which offers skincare solutions through 106 clinics, contributed around 7% to
Marico's consolidated revenue of .`4,000 crore in 2011-12, but had a loss of Rs 29.1crore at the EBIT
level. Company officials said there were strong cultural differences between Marico and Kaya that limited
the growth prospects for Kaya.

21. "Kaya is a feminine business; 85% of Marico's employees are male, which created a macho system that
did not understand the requirements of Kaya where 85% of employees are women," Milind Sarwate, CFO
at Marico, said. Officials also said the company is also open to the possibilities of roping in a
strategic private equity player into Kaya once its growth plans are in place.
While Marico slowed down Kaya's expansion in the past two years, the services arm turned in a profit of
Rs5.7 crore in the second quarter ended September, but is still a loss making business at an overall level.
However, the management is optimistic on its turnaround plans. Since the last few months, Kaya clinics
have been selling high-margin products from the portfolio of its acquired firm DermaRx, taking the retail
contribution to over 20%. Cost rationalisation through smaller stores and affordable services, along with
increased focus on high-margin Derma Rx product sales via clinics, has also helped its same-store sales
growth over the past eight quarters.
Marico restructures business, Kaya to be demerged
Mumbai-headquartered Marico Ltd has initiated a restructuring exercise, which will see the demerger of its skin
solutions division Kaya into a separate listed company called Marico Kaya Enterprises (MaKE). The restructuring is
effective April 1 and the new company, MaKe, will be listed on the bourses by June-July this year, said Milind
Sarwate, chief of finance, human resources and strategy, Marico.
Kaya’s incumbent Chief Executive Officer Ajay Pahwa will make way for Vijay Subramaniam, the international
business head at Marico, who will be the new CEO of MaKe. Saugata Gupta, currently CEO of the domestic
consumer products division at Marico, will be the CEO of the consolidated fast-moving consumer goods (FMCG)
business, which will include both local and international operations. He will continue to report to Marico’s Chairman
and Managing Director Harsh Mariwala. “The skin solutions division is a separate business from the consumer
products division and it was time it got focused attention," said Sarwate. “The consolidation of the domestic and
international consumer products divisions will help in driving synergies," he added.
Kaya contributes seven per cent to Marico’s Rs 4,000-crore top line, but has been a drain on the company’s bottom
line, incurring a loss of Rs 29.10 crore at profit before interest and tax (PBIT) level in the last financial year. Marico’s
core FMCG business, on the other hand, has faced some pressure in recent quarters on account of a slowdown in
discretionary spends. This has been visible in brands such as Saffola, one of Marico’s key products besides hair oil
Parachute. Company executives have said they see this pressure on discretionary spends continuing for some time.
Brokerages turn positive on Marico on restructuring
plans
ECONOMICTIMES.COM Jan 8, 2013, 04.25PM IST
NEW DELHI: Analysts at top two brokerage firms are of the view that the restructuring plan is positive for
Marico and will result in value creation for shareholders and create the possibility of a strategic
investment.
The board of directors of Marico has approved the restructuring of businesses, corporate entities and
organization involving a) the demerger of Kaya Skin Care Solutions into a separate company by
name Marico Kaya Enterprises Ltd (MAKE) and b) formation of a unified FMCG business.
Citigroup is of the view that the restructuring is positive for the company and will result in shareholders
value creation opportunity with the demerger and listing of Kaya.
The global bank is of the view that Marico is well placed to deliver superior earnings of 22 per
cent CAGR over FY12-15E driven by healthy volumes & steady margins.

22. Citigroup upgraded the stock to 'buy' from 'sell' earlier and has also raised its target price to Rs 260 from
Rs 205 earlier based on 30x FY14E core EPS estimates. The restructuring increases the possibility of a
strategic investment and value creation opportunities, said the Citigroup note.
Kotak Institutional Equities has retained 'add' rating on Marico, but has upped the price target from Rs
220 earlier to Rs 240. The brokerage says the demerger of Kaya business will lead to value creation and
is valuing the business at 3 times 2014 sales.
Demerger of Kaya into a separate listed entity will lead to price discovery of the business. Kotak
estimates Kaya to report sales of Rs 4.1 bn and breakeven at the PAT level in FY2014E.
Analysts are of the view that hive-off of the loss making Kaya business would also boost the earnings
growth, albeit modestly. Kaya has been a loss making venture for Marico and during FY2012 Kaya made
a loss of Rs 29cr at the PBIT level on net sales of Rs 279cr
"The demerger of the loss making venture would result in Marico turning into a pure FMCG play enjoying
superior return ratios," Angel Broking said in a note.
At the current market price, Marico is fairly priced, trading at 28x FY2014E earnings. The Mumbai-based
brokerage firm maintains a 'neutral' rating on Marico.
Currently the promoters of Marico have a 60 per cent stake in Marico and post demerger the
shareholding structure of MAKE will be identical to Marico's current shareholding structure.
"Shareholders of Marico will be allotted one share of MAKE for every 50 shares held in Marico," said the
Angel Broking report. "Demerger of the loss making venture would result in better return ratios for
Marico," said the Mumbai-based brokerage firm.
Marico's marathon man
“One needs to operate to one's strengths and the FMCG business is to my strengths and
the one that I love to do.”SAUGATA GUPTA, CEO,CONSUMER PRODUCTS, MARICO
LTD
Lunch and Mr Saugata Gupta were waiting for us when we entered his modestly-sized cabin at the
consumer goods company, Marico's headquarters at Rang Sharda, Bandra, famous for its auditorium
which hosts quite a bit of Mumbai's theatrical action. The dapper 43-year-old CEO of Marico's
consumer goods business leaps up to greet us, hospitable and informal as ever.
Over the next two hours or so, he'll talk passionately about his brands, his convictions and some
strategy, over large Subway sandwiches, which he has ordered as a working lunch for us.
The thing about these gargantuan Subway sandwiches, you soon realise, is as you bite into one end
with gusto, stuff starts spilling out at the other end. We decide to take turns plying him with
questions, interspersing our queries on Marico's brands with mouthfuls of unwieldy sandwich.
Maintaining a level of etiquette around Mr Gupta's small conference table, as cold beverage is served,
we ask him what's with the acquisition fever that has had Marico and many other FMCG companies
scouting for brands from Africa to West Asia and South-East Asia. “Isn't India where the action is, on
all things relating to consumption?” we „Sub'-intone.

23. READY EXPLANATION
Mr Gupta has a ready explanation. Operating in Africa or West Asia may be complex, but
competition there is less bruising than it is at home.
“All of us are looking at multiple pillars of growth. It's still not a focus market for many MNCs, but a
focus market for many Indian companies. If you look at Africa, there are lots of similarities (with
India). Category penetration is low, so there's scope for potential growth. Also, it's a complex market;
one of the competencies of Indian managers is to work in a slightly chaotic environment. The market
(there) is still not competitive. While complexity is there, the relative competitive intensity being low,
we're investing ahead of the curve.”
But for all its appetite for African and Asian forays, Marico, he says, is a “boringly consistent”
company. Not for it that tall talk about a huge war chest, and being “on the prowl” for acquisitions.
“Yet we are growing at a 20-per-cent CAGR. The number of exciting news items is less, but that's
okay, but the pace of growth is equally good. The focus is something we believe in.”
Mr Gupta, a seasoned marketer who cut his teeth in Cadbury, is emphatic when he says he won't
launch a new brand or step into a new category just for the sake of it. Right now, he's content with
the brand stretch that his two power brands, Saffola and Parachute, are undergoing. Marico has
clearly defined itself, he says, in the “beauty and wellness” space.
“Should we want to participate in any new categories, we now have access to products. At the same
time, to market an unknown brand, common distribution, media footprint and consumers will
determine it. And, I don't think we have acquired that scale right now.”
One of the things Marico did in the last two years was to take a hard look at the brands and
categories it was supporting and deciding to shelve a few! Mr Gupta warns of the trap many FMCG
players fall into: pursuing the Indian “consumption story” too ardently.
“If you look at a growing market such as India, everyone will come up with the same list of categories
which are attractive. What is critical for any organisation is the ability to win in that category and
that happens when you have shared customers or a supply chain. One of the reasons we withdrew
Sparsh (a baby care brand launched by Marico) was that, the product was wonderful, but we didn't
have the right to win because the key influencers were paediatricians and young mothers. Our target
group (for its other products) did not have shared consumers.”
LEIT MOTIF
Focus, in fact, is a leitmotif right through Mr Gupta's conversation.
“We were chasing too many small things; one of the things we decided was to have a „stop doing' list!
We had a few big bets, and are persisting with it. That's one key strategic shift we've done and we've
seen results and will continue to do so,” Mr Gupta gesticulates emphatically.
So, while Saffola, the healthy oil brand, has been extended to functional foods and oats, coconut oil
brand Parachute has seen many extensions to make it more appealing, such as its recent hair fall
prevention oil which has found its way into the Kerala and Tamil Nadu markets, “and, doing very
well; consumers believe a „leave-on' product will nourish the hair better!”

24. INTERMEDIATE FOODS
By now most of the innards of our Subs are on the plate and we're trying to pick up the pieces. Mr
Gupta is already through, managing to polish off the sandwich even as he fielded our rapidfire
questions.
If Saffola has got into oats and other functional foods, will it look to be a breakfast foods brand, we
venture to ask?
Mr Gupta has an interesting take. “In India, I don't see ready-to-eat products having a big market,
because there is still a concept of „fresh' food, there's labour available and the housewife would still
like to prepare the food. Now, because of lack of time and convenience, what she doesn't like is
negative labour. That could be cutting vegetables, preparing a masala — there's a huge market for
intermediate foods.”
He also has an insight into why the same household may take to a breakfast cereal.
“Today with increasing double income families, they are time-poor as far as the morning is
concerned; you can have help cooking a meal later in the day, but you won't have help cooking
breakfast.”
Meal done (whew!) we glug our drink, shift gears and ask him about his career move from consumer
goods to insurance and back.
A chemical engineer from IIT-Kharagpur (“always wondered what use it was in my career, but at
least I'm not flummoxed when I see process plants!”), Mr Gupta went on to do an MBA from-IIM,
Bangalore.
Later, he was recruited into Cadbury by Ms Vinita Bali (Britannia MD) and then head of marketing
for the chocolates company. Mr Gupta spent nine years marketing Cadbury brands and made an
unlikely shift to head marketing at ICICI Prudential.
“The reason I went from FMCG to insurance is that I wanted to be with a start-up and start
something new. That time I was 32, age was on my side. I learnt quite a lot about managing
ambiguity and also about speed and aggression. A lot of learning and maturing as a leader happened
. But one needs to operate to one's strengths and the FMCG business is to my strengths and the one
that I love to do.”
Joining Marico as head of marketing, Mr Gupta was made CEO in 2007 at the age of 39.
“It's been exciting driving growth; also the organisation has changed a lot. Without disturbing the
fabric of the organisation which has a strong culture of transparency, openness, fairness, we have
brought in two new values: bias for action and a global outlook. The next challenge is as we scale up.
The domestic business has crossed Rs 2,000 crore and the group Rs 3,000 crore. We have gone
through times of volatility. That is the new challenge, inflation is here to stay, and we have to manage
it; that's' the new normal.”
As a dyed-in-the-wool marketer, Mr Gupta believes there is nothing like working the markets himself
to glean consumer insights.

25. He talks about how he validated his own strategy for Marico's Shanti Amla brand while sitting in
Agra's wholesale market sipping tea with the largest amla dealer. Simple, homespun views from the
dealer and Mr Gupta knew he was on the right track.
An inveterate traveller, as is his wife, a banker, both of them make sure that neither is travelling at
the same time to be with their 11-year-old daughter.
“And, if we need to travel to the same destination, we make sure we are on separate flights!”
One can see that his daughter, Sanjana, whose many pictures are in his cabin, has Papa wrapped
around her little finger. She's the one who brings him back to reality, he says, when sometimes she
throws up both her hands and quizzes, “Your numbers were okay, na, this month?”