This is a significant growth considering that in the fiscal 1998-99, the advertising and sales expenditure suffered a 4.4 per cent dip over the fiscal year 1997-98. Marico made an expenditure of Rs 40.7 crore in advertising and sales promotion during 1997-98.

Fiscal 2000 saw a significant step-up in the advertising and sales promotion support which was extended to new product launches and to the existing product range.

The high ad-spend is understandable as during 1999-2000, activities surrounding sales and marketing were high. While in the midst of a major acquisition spree - it acquired Oil of Malabar from West Coast India and Mediker from Procter & Gamble - Marico rolled out Parachute Dandruff Solution in the last quarter of the fiscal and backed it with a high voltage ad campaign.

The need to promote the product through a strong advertising campaign was essential so as to establish its presence in a new market such as anti-dandruff hair oil.

Sales of Mediker, which was acquired in the first quarter of the fiscal, also commenced towards the end of July 1999.

In the midst of heavy competition from Hindustan Lever, the company also increased advertising support to the flagship brand Parachute, along with running sales promotion schemes during the year. Further, to provide greater value to consumers, it introduced a new All Seasons' pack, which has made dispensation more convenient.

Parachute managed to resist increased competition and maintained its market share during the year at 53 per cent. The company also rolled out Parachute Lite Jasmine in the northern and western markets.

There were other marketing activities relating to Saffola value-added salt and Sil Jams. The latter was relaunched last year with new packaging and a new formulation with glucose. As a result, Sil's market share in the jams category during the year increased to over 12 per cent from about 10 per cent in the previous year.