Marico Moves To Functional Structure Of Operation

Mumbai, Nov 7: | Updated: Nov 8 2003, 05:30am hrs
Marico Industries is in consolidation mode. The company, in a bid to achieve better synergies, has gone back to its previous model of operating on a functional structure. Accordingly, it is also reorienting its sales and distribution.

A few years back, Marico had formed a system wherein each division such as nature care for its brands like Parachute, and health care for Saffola and Sweekar was headed by a chief executive officer (CEO). The move then was aimed at delivering better performance as each division operated as a strategic business unit. This aim was achieved, said sources, with the company reporting better performance over the years.

The move now to bring all marketing and sales aspects under one roof is aimed at bringing in operational synergies. When contacted, Marico Industries chairman and managing director Harsh Mariwala said the company has been operating through a functional structure for a few months now.

The move also comes at a time when some of its CEOs quit the organisation to pursue their personal interests.

Its nature care division CEO Shreekant Gupte had quit the company over a year ago to join Modi Online Lottery, while recently its health care CEO Pranab Datta quit the company to join Mahindra Gesco, a real estate company.

The Rs 787-crore maker of Parachute and Sweekar has broadened its horizon of growth by expanding its focus from hair oils to hair care, and from edible oils to healthy foods.

Marico had earlier roped in consulting firm Erehwon Consulting for initiatives on innovation in marketing and management. Several internal initiatives on innovation have led to Maricos foray into the skincare business with Kaya skin clinics.

Maricos entry in the US with Sundari range of skin care products marks its entry in the skincare category. The personal care market offers scope for value-added products and services. Over the last couple of years, Marico has broad-based its hair oil franchise to include all segments of the hair oil market.