After acquiring Singapore-based Derma Rx Asia Pacific last month, FMCG major Marico is scouting for acquisitions in Africa and Asia. With such acquisitions, Marico expects 45% of its skincare revenues to come from overseas. As part of its global strategy, it plans to set up skincare clinics in Singapore and Thailand soon. In the domestic market, Marico is looking at acquisitions in the beauty and wellness segment. To take on rivals in FY 2010 -11, Marico is currently drawing up a fresh game plan which includes, expansion of its manufacturing facility, distribution network, hike in ad budget and a new corporate strategy.
On the company’s growth strategy, Marico head (M&A) Chaitnaya Deshpande said, ?Our core strategy is to expand consumer franchise of all our brands in India and overseas. This will be achieved through a combination of brand building initiatives and by expanding distribution network.? At present, Marico’s distribution network covers 33 lakh retail outlets across the country. During 2009-10, Marico Group had a turnover of Rs 2,661 crore. Its brand portfolio includes, Parachute, Saffola, Sweekar, Hair & Care, Nihar, Mediker, Revive, Kaya, Fianc?e, and Hair Code, among others.
According to Deshpande, Marico has made investments in a new plant at Poanta Sahib which got commissioned during Q4FY10. ?This facility is for hair oils and value added hair care products. It entailed a capital expenditure of about Rs 23 crore and is expected to take care of the company?s growth aspirations in this segment over the next few years., ? he added.
?Since the acquisition of ?Manjal? (herbal soap) in Kerala in 2006, Marico has been scouting for southern skin care brands for a while. And now it has turned its attention to global markets too,? said an analyst based in Mumbai. In 2006, Marico had bought out Hindustan Lever’s Nihar brand for a Rs 227 crore. In the same year, the firm also acquired Fiancee from Egypt-based Ready Group.
As part of its global strategy , Marico has been leveraging its presence in different markets and have taken some of them across boundaries. Last year, Marico launched Hair Code hair dye in Bangladesh. ?We have plans to leverage our distribution network in Bangladesh and introduce Saffola refined edible oil in that market. We have launched Parachute Gold hair oil in Egypt and Parachute Therapie anti hairfall solution in West Asia,? Deshpande said.