Enthused by its performance in Q1 FY10, Marico Ltd is drawing up a fresh gameplan for Q2 which includes acquisitions in Asia and Africa, expansion of existing franchises through investments in advertising & sales promotions (ASP) and new product launches. Incidentally, Marico has just filed writ petitions with the high courts of Goa and Kerala, to challenge changes made by the Central Board of Excise and Customs on excise duty levied on packaged coconut oil.
As part of its global growth strategy, Marico?s Bangla subsidiary is planning to tap the capital with its IPO soon. ?The IPO is a further step towards localising Marico?s business in Bangladesh through local ownership. For the first time, an overseas subsidiary of Marico is going public,? said Chaitanya Deshpande, head of mergers & acquisitions at Marico.
According to Deshpande, Bangladesh has been an important part of Marico?s global strategy. ?Over the past nine years, the group has consistently invested in Bangladesh.
The ?Think Global, Act Local? approach has helped the Bangla unit record a CAGR of 71% in turnover over the past three years,? he added. Marico?s total income has increased from Rs 599.19 crore for the quarter ended June 30, 2008 to Rs 699.86 crore for the quarter ended June 30, 2009.
To sustain its competitive edge in the Indian FMCG industry, Marico?s core strategy will be to focus on long-term sustainable growth. ?Apart from expanding existing franchises, the company will also launch and prototype new products. New launches and restaging of existing brands will contribute to the growth across Marico?s business,? said Deshpande.
According to Deshpande, Marico has identified acquisitions as an avenue for growth and will look for acquisition opportunities in beauty and wellness in its focus on geographies of Asia and Africa. As for its foray into new categories, Marico has begun prototyping two cooling oil variants – Nihar Naturals Coconut Cooling Oil in Bihar and Parachute Advansed Coconut Cooling Oil in Andhra Pradesh.?
On whether Marico is planning to sell its soap brands Camelia and Aromatic in Bangladesh, Despande said, ?Since their acquisition by Marico in 2005, the brands Camelia and Aromatic have played a role of providing wider distribution coverage for Parachute.