The key strength
of Marico’s in the Indian market is its extensive distribution network that has
reach to about 17 lakh retail outlets spread across the country. The
distribution network constitutes of 5 regional offices, 30 company depots and 6
consignment sales agents that in turn supply to 850 distributors in the urban
areas and 11 super distributors in the rural areas. The super distributors also
service more than 2600 stockists. A marketing and distribution alliance with
Indo Nissin Foods for Top Ramen has also been signed by Marico. The company has
6 manufacturing facilities located at Jalgaon, Saswad and Sewree in
Maharashtra, Palakkad (Kerala), Ponda (Goa) and Dehradun (Uttaranchal). Its products
also get manufactured through subcontractors.
Marico has three
subsidiaries – Marico Bangladesh Limited that manufactures and sells branded
coconut oil in Bangladesh, Kaya Skin Care Limited that provides skin care
services and retails products and Sundari LLC, USA which carries Ayurvedic skin
care products business. The majority stakeholders in the company with 66.6 per
cent share are the promoters. Foreign institutional investors own 12.1 per cent
of the shares and Indian financial institutions have 11.1 per cent share.
Indian public, non-promoter corporates, trusts and non-resident Indians hold
the remaining shares.
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Over the past
quarter century Marico has progressed into a consumer focussed FMCG company in
the beauty and wellness space via 12 well-established brands. It has primarily
has three business segments – Consumer Products (comprising the consumer
products business of Marico Limited, Marico Bangladesh Limited and MBL
Industries Limited), Skin Care (services and products retailed through Kaya
Skin Clinics) and Global Ayurvedics (Sundari).
Product lines in
the Consumer Products segment include coconut oil, hair care, anti-lice
treatment, refined edible oil, fabric care and processed foods. The brands in
this segment and their extensions occupy leadership positions with significant
market shares in their respective product categories. The flagship brand
Parachute has captured a market share at over 50 per cent in India in the
coconut oil category. In the skin care services segment, Kaya Skin Clinics
offer US FDA approved dermatological procedures like anti-ageing services,
permanent hair reduction, face rejuvenation, pimple removal, etc as well as
beauty products. Beauty products include skin lightening complex, under-eye
gel, moisturising sunscreen and night creme.