Marico recorded its sixth consecutive quarter of over 20% year on year growth in its topline. During Q2FY08, Marico achieved a turnover of Rs 464 crore, an increase of 23% over the corresponding quarter in the previous year.
This comprised 16% organic growth accompanied by 7% inorganic growth. Healthy growth across all its businesses, those of consumer products in India, international business and Kaya skin solutions contributed to the overall growth.
Together with this topline increase, the bottom-line also recorded a growth of 62 %. Profit After Tax (PAT) during the quarter was at Rs 42 crore as against Rs. 26 crore in Q2FY07.
Q2FY08 is in Y-o-Y growth terms, the: • 28th consecutive Quarter of growth in Turnover and • 32nd consecutive Quarter of growth in Profits
The Board of Marico Limited, at its meeting held on October 24, 2007, declared an interim dividend of 15% on its equity share capital of Rs. 60.9 Crore.
Marico's overall performance and its growth story have received external recognition. In July 2007, Marico won the NDTV Award for the “Best Business Leader for FMCG in the Personal Hygiene category”. Earlier in the year, Marico featured amongst eight Indian companies in S&P (Standard & Poor's) list of Global Challengers 2007.
Over the last few years, Marico has focussed on a consistent strategy of growing the coconut oil market by encouraging conversions from loose oil to branded oil.
At the same time Parachute has also worked on increasing its market share in pockets where the scope to do so is higher than in its strongholds, through various micro-marketing initiatives. The brand's market share in the 12 months to August '07 was about 48% in volume terms.
Marico had acquired Nihar, one of its chief competitors in February 2006. This has also helped the brand to consolidate its position in the coconut oil market. Marico now commands a 57% market share in the branded coconut oil market.
Recent months have seen the entry of new competition in the category from the brand Fortune. No significant offtakes have been reported as yet.
The company would keep a watch on its progress together with that of existing competition. For now Marico does not envisage any change in its current strategy for Parachute.
The “Gorgeous Hamesha” campaign of Parachute Advansed endorsed by film personality Deepika Padukone has been received well. This together with the “One hour Champi” campaign from Parachute Advansed is expected to encourage increased usage of the brand both pre-wash and post wash.
In the perfumed coconut oil rigid category, Parachute Jasmine and Nihar perfumed oils grew by 9.6% in volume. Marketing support has ensured continued performance in the market place.
Between these two brands, Marico continues to dominate the perfumed coconut oils market with a market share of rigid packs at 79% (12 months to August 2007). Nihar's perfumed hair oil's “Aami Nandini” campaign won Bronze at this year's Effie awards.
marketing@alchempro.com
