A

DESK RESEARCH PROJECT REPORT ON

FAST MOVING CONSUMER GOODS
INDUSTRY
FOR
MARICO LIMITED
SUBMITTED BY
MRUNALI ANAND SHINDE
Institute Roll No: ZM2426211

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE
IN PARTIAL FULFILLMENT OF DEGREE
MASTER OF BUSINESS ADMINISTRATION SEM-II

UNDER THE GUIDANCE OF

Prof. Sonal Sharma

Zeal Institute of Management and Computer

Application (ZIMCA), Pune

2024-25

1
 CERTIFICATE
This is to certify that SHINDE MRUNALI ANAND, Roll No.:
ZM2426211 of MBA SEM-II has completed the Desk Research on

Fast Moving Consumer Goods Industry for Marico limited

fulfillment of MASTER OF BUSINESS ADMINISTRATION for
Savitribai Phule Pune University, Pune under the guidance of
Prof. Sonal Sharma. To the best of my knowledge and belief, it is
an original work and this project has not been submitted to this or
any other University or Institution for the award of any Degree.

Date:

Place: Pune

Prof. Sonal Sharma Dr. Tejaswinee Ingle

Project Guide DR Coordinator

Dr. Madhavi Shamkuwar Dr. Vinod Sayankar

Head DR & FP, ZGMI Director, ZIMCA

2
 DECLARATION BY STUDENT

To,
The Director,
ZIMCA, Pune

I, undersigned hereby declare that this Desk Research Fast Moving

Consumer Goods Industry for Marico limited developed and

submitted by me in partial fulfillment of the requirement of MASTER
OF BUSINESS ADMINISTRATION (Sem-II) under the guidance of
Prof. Sonal Sharma is my original work.

I further declare that to the best of my knowledge and belief, this project
has not been submitted to this or any other University or Institution for
the award of any Degree.

Place: Pune
Date: / /2025

MRUNALI ANAND SHINDE

3
ACKNOWLEDGEMENT
I extend my sincere gratitude to the Prof. Pandurang Patil, Head
Management Program, My special thanks to Dr. Vinod Sayankar ,
Director of ZIMCA for allowing me to carry out the study and for his
constant encouragement, valuable suggestions and guidance during the
project work.
I am thankful to my project guide Prof. Sonal Sharma for guiding me
throughout semester to complete this project successfully.
I extend my special thanks to Dr. Madhavi Shamkuwar, Head Desk
Research & Field Project, Dr. Rupali Kalekar, Academic
Coordinator-MBA, Dr. Tejaswinee Ingle, Desk Research
Coordinator for their kind cooperation and inspiration.
I extend my special gratitude to my dearest family members and friends
who encouraged and motivated me to complete the project report.

Place: Pune
Date: / /2025

MRUNALI ANAND SHINDE

4
 Index
CHAPTER DETAILS PAGE
NO
1 CHAPTER 1: Industry Analysis – the Basics 3 - 30
1.1 Industrial overview and market size & growth trends 3
1.2 Employment work force trend 11
1.3 Technology Advancement and Innovation in FMCG 17
Industry
1.4 Followers 23
1.5 Introduction to Niche Players 27

2 CHAPTER 2: Promoters & Management Ethos 31 - 37

2.1 Company Profile 31
2.2 C-Level Management 31
2.3 Product/Services Category 32
2.4 Key Strategies Of company 33
2.5 DROC OF COMPANY 35
CHAPTER 3: External Environment 38 - 40
3 3.1 Controlling Ministry & Regulators 38
3.2 Regulatory Policies at Different Levels and their 38
impact
3.3 Impact of regulatory policies on the Industry/ 38

Company
3.4 Key National & Global Issues Affecting the Industry 39

and company
40
3.5 Government Initiatives to Promote the Industry and
company
40
3.6 Regulatory actions and legal violation

4 CHAPTER 4: Financial Analysis 41 - 45

4.1 Profitability Trends 41
4.2 Revenue Growth Analysis 42
4.3 EBITDA Trends 42

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 4.5 Investment & Capex Trends 43
4.6 Key Cost Drivers 43
4.7 Liquidity Ratios (Current & Quick Ratio 44
4.8 Industry-Wide Trends Affecting Financials 45

CHAPTER 5: Recent Developments 46 - 50

5.1 Impact of Latest Fiscal Policy on Industry and 46
company Both
5.2 Exim Policy Analysis for Export oriented industries 46
5.3 Effect of Import Regulations on Industry 47
5.4 Technological Advancements & Digital 48
Transformation
5.5 Labour Unrest & its impact 48
5.6 Role of First-Generation Entrepreneurs 49
5.7 Shifts in Foreign Direct Investment (FDI) 50

6 BIBLIOGRAPHY / REFERENCES 51 - 52
ANNEXURE:

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1.1 Industrial overview and market size & growth trends

Introduction

Fast-moving consumer goods are products that sell quickly at relatively low cost.
Fast-moving consumer goods (FMCGs) are products that sell quickly at relatively
low cost. FMCGs have a short shelf life because of high consumer demand (e.g., soft
drinks and confections) or because they are perishable (e.g., meat, dairy products,
and baked goods).
India’s Fast-Moving Consumer Goods (FMCG) sector grew 7.5% by volumes in the
April June 2023 quarter, the highest in the last eight quarters, led by a revival in rural
India and higher growth in modern trade.
The Fast-moving consumer goods (FMCG) sector is the 4 th largest sector of the
Indian economy. Total revenue of FMCG market is expected to grow at a CAGR of
27.9% through 2021-27, reaching nearly US$ 615.87 billion. In 2022, urban segment
contributed 65% whereas rural India contributed more than 35% to the overall annual
FMCG sales. Good harvest, government spending expected to aid rural demand
recovery in FY24. The sector had grown 8.5% in revenues and 2.5% in volumes last
fiscal year. In the January-June period of 2022, the sector witnessed value growth of
about 8.4% on account of price hikes due to inflationary pressures. In third quarter of
FY23, the FMCG sector clocked a value growth of
9.0% YoY — lower than the 9.2% YoY value growth seen in third quarter of FY22.
India’s Fast-Moving Consumer Goods (FMCG) sector grew 7.5% by volumes in the
April June 2023 quarter, the highest in the last eight quarters, led by a revival in rural
India and higher growth in modern trade.

▪ Key industries drives and challenges

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FMCG industries play a significant role in the global economy and are known for
their fast-paced nature and constant innovation. They are characterized by high
volume sales, low profit margins, and widespread distribution networks. Here are
some of the key industries considered FMCG industries.
1. Food and Beverages:

• Processed foods
• Snacks and confectionery
• Dairy products
• Beverages (soft drinks, juices, bottled water)

2. Personal Care and Cosmetics :

• Skincare products
• Hair Care products
• Bath and shower products
• Fragrances
• Makeup and beauty products

3. Household Products :

• Cleaning agents (detergents, soaps)

• Home care products (air fresheners, disinfectants)
• Paper products (toilet paper, tissues)
• Batteries

4. Tobacco Products :

• Cigarettes
• Cigars
• Tobacco accessories
•
5. Pharmaceuticals and Over-the-counter (OTC) Medicines :

• Non-prescription drugs
• Vitamins and supplements

6. Consumer Electronics :

• Mobile phones
• Television sets
• Small appliances (kitchen appliances, personal grooming devices)

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[Link] and Childcare Product :

• Diapers
• Baby food and formula
• Baby care accessories

[Link] Care Products :

• Pet food
• Pet grooming products
• Pet toys and accessories

These industries are highly competitive and rely on effective marketing strategies,
product differentiation, and brand recognition to capture consumer [Link]
changing consumer preferences and evolving market trends, FMCG industries
continuously strive to innovate and adapt to meet the demands of consumers
worldwide.

Biggest Challenges Faced by the

FMCG Sector :
The FMCG (Fast-Moving Consumer Goods) sector continues to be a vital part of the
global economy, providing essential products to consumers worldwide. However, the
industry faces various challenges in 2023 that require careful navigation and strategic
planning. These challenges range from shifting consumer preferences to evolving
market dynamics and technological advancements. Let us delve into 12 significant
challenges that the FMCG sector encounters in 2023.

1. Changing Consumer Preferences: Consumer preferences are constantly

evolving due to various factors such as demographic shifts, changing
lifestyles, and increased awareness of sustainability and health consciousness.
FMCG companies must closely monitor these changes to understand the
needs and desires of their target consumers. This requires conducting market
research, analyzing trends, and staying updated on emerging consumer
behaviors.

2. Intense Competition: The FMCG sector is characterized by intense

competition, with numerous players vying for market share. Traditional
FMCG giants face competition not only from each other but also from nimble
startups and direct-to consumer brands. To thrive in this competitive
landscape, companies need to differentiate themselves through innovation,
product quality, packaging, pricing strategies, and effective marketing.

3. Rising Raw Material Costs: Fluctuating raw material prices pose a

significant challenge for FMCG companies. Factors such as geopolitical
tensions, climate change, and supply chain disruptions can lead to increased

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 costs of raw materials, packaging materials, and ingredients. These cost
fluctuations directly impact the profitability of FMCG companies, making it
crucial for them to closely monitor and manage their supply chains, explore
alternative sourcing options, and negotiate favourable contracts with
suppliers.

4. Supply Chain Disruptions: The smooth functioning of the supply chain is

vital for FMCG companies as any disruptions can lead to delayed deliveries,
product shortages, and dissatisfied customers. Disruptions can be caused by
various factors, including natural disasters, trade conflicts, political
instability, and global pandemics.

5. Sustainability and Environmental Concerns: Consumers are increasingly

concerned about the environmental impact of the products they purchase.
FMCG companies are under pressure to adopt sustainable practices
throughout their value chain. This includes reducing packaging waste, using
recyclable or biodegradable materials, optimizing energy consumption, and
implementing eco-friendly manufacturing processes.

6. E-commerce and Digital Transformation: The rise of e-commerce and

digital platforms has transformed consumer behavior, with online shopping
becoming increasingly popular. FMCG companies need to adapt their
business models to meet the demands of digital-savvy consumers. This
involves developing robust online strategies, optimizing their digital presence
through user-friendly websites and mobile apps, and leveraging data analytics
to personalize marketing and enhance customer experience.

7. Regulatory Compliance: FMCG companies operate in a highly regulated

environment, subject to various laws and regulations regarding product
safety, labeling, advertising, and data privacy. Compliance with these
regulations is crucial to avoid legal issues, reputational damage, and financial
penalties. Staying updated with changing regulations, implementing robust
compliance programs, and conducting regular audits are essential.

8. Talent Acquisition and Retention: Attracting and retaining skilled talent is a

persistent challenge for the FMCG sector. With the emergence of new
technologies and the need for digital expertise, companies require
professionals with diverse skill sets. FMCG companies should focus on
employer branding, offering attractive compensation packages, providing
opportunities for career growth and development, and fostering a positive
work culture.

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 ▪ Consumer Behavior

Consumer behavior refers to how individuals or groups make decisions to buy, use,
and dispose of products or services. Key factors influencing behavior include:

A. Psychological Factors
• Perception – How consumers interpret marketing messages and product
attributes.
• Motivation – Driven by Maslow’s hierarchy of needs (basic needs → self-
actualization). • Attitude & Beliefs – Brand perception influences buying
decisions.

B. Personal Factors
• Demographics – Age, gender, income, education level.
• Lifestyle – Interests, hobbies, values, and habits. • Personality – Introverts vs.
extroverts; trend-followers vs. traditional buyers.

C. Social & Cultural Factors

• Family Influence – Buying behavior shifts across different life stages.
• Social Groups – Friends, influencers, and peer recommendations impact
choices. • Culture & Subculture – Regional preferences and traditions affect
demand.

D. Economic & Technological Factors

 Income & Employment Trends – Higher disposable income increases

luxury spending.

 Digital Influence – social media, online reviews, and AI-driven

recommendations shape behavior.

 Target Market Analysis A target market is a specific group of consumers

a business aims to serve. Identifying the right target audience ensures
effective marketing strategies.

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 ▪ Market Segmentation

1. Demographic Segmentation – Age, gender, income, occupation, education,

marital status.

2. Geographic Segmentation – Urban vs. rural, country, climate, and cultural

differences.

3. Psychographic Segmentation – Values, lifestyle, interests, personality traits.

4. Behavioral Segmentation – Buying habits, brand loyalty, usage rate,

benefits sought.

B. Identifying the Ideal Customer

• Customer Pain Points – What problems does the product solve?

• Purchase Intent – Need-based, impulse, or luxury purchases?

• Media Consumption – social media, TV, newspapers, word-of-mouth?

C. Tools for Target Market Research

• Surveys & Questionnaires – Direct customer feedback.

• Google Trends & Analytics – Online search behavior insights.

• Social Media Insights – Facebook, Instagram, LinkedIn audience analysis.

• Competitor Analysis – Studying similar businesses' marketing strategies.

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 ▪ Structure Of FMCG Distribution Channels:

The structure of FMCG distribution channels intricately weaves together a network

that ensures products seamlessly journey from manufacturers to the hands of
consumers.

[Link] to Wholesaler: Linking the Beginnings

Role: The initial link in the distribution chain where manufacturers supply bulk
quantities to wholesalers.

[Link] to Retailer: Bridging the Gap

Role: Wholesalers serve as intermediaries, connecting manufacturers to retailers.

[Link] to Consumer: The Final Touchpoint

Role: The last link in the chain where consumers directly access FMCG products.

[Link] vs. E-commerce Distribution Channels

The landscape of FMCG distribution has evolved, offering traditional and e-
commerce channels. Understanding these distinctions is pivotal for manufacturers
seeking to optimize their distribution structure.

What is the importance of the supply chain in the FMCG industry?

A well-functioning FMCG supply chain helps companies enhance product quality,
build a strong brand identity, and increase profit margins.

Stages of the Supply Chain in the FMCG Industry:

Supply of Raw Materials:

Goods are sourced from reliable suppliers, contracts are negotiated to secure
favorable pricing and delivery conditions, and delivery dates are set to ensure on-time
arrival.

In-plant Logistics:
In-plant logistics involve the seamless transfer of goods between various stages of the
production process, such as from storage to production and finishing facilities,
ensuring a smooth workflow.

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Storage:

This stage encompasses organizing production schedules, testing items for quality,
packing them for safe handling, and preparing them for release using a network of
warehouses across the distribution channel.

Transportation:

Transportation involves managing the efficient movement of goods via air, rail, and
sea from the warehouse to distribution centers, ensuring timely and secure transit.

Delivery:

Delivery ensures the final distribution of goods to consumers or retail stores by

coordinating with logistics partners and using efficient routing strategies.

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Employment work force trend

Employment Workforce Trends in the FMCG Sector (2024)

The Fast-Moving Consumer Goods (FMCG) sector is one of the largest employers
globally, known for its dynamic workforce and evolving employment trends. Here
are the key trends shaping FMCG employment:

o Employment Workforce Trends

Employment workforce trends are constantly evolving due to technological

advancements, demographic shifts, economic conditions, and changing workplace
expectations. Understanding these trends helps businesses, employees, and
policymakers adapt to the future of work. Below is a comprehensive analysis of key
workforce trends shaping employment today and in the future.
1. Rise of Remote and Hybrid Work
One of the most significant shifts in the workforce is the increasing adoption of
remote and hybrid work models. The COVID-19 pandemic accelerated this trend,
proving that many jobs can be performed effectively from home. Employers now
offer flexible work arrangements to attract and retain talent. Remote work has also
led to:
• A shift in workplace culture, emphasizing results over physical presence.

• Increased use of collaboration tools like Zoom, Microsoft Teams, and Slack.

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 • Expansion of the global talent pool, allowing companies to hire employees
from different geographical locations.

2. Growth of the Gig Economy

The gig economy, which includes freelance, contract, and temporary work, is
expanding rapidly. Platforms like Uber, Upwork, and Fiverr have made it easier for
individuals to work independently. The benefits of gig work include:
• Flexibility in work schedules.

• Increased opportunities for diverse income sources.

• Companies reducing fixed labor costs by hiring on a project basis.

However, gig workers often lack job security, benefits, and protections that
traditional employees receive, leading to ongoing discussions about labor laws and
worker rights.

3. Automation and AI Impact on Jobs

How will artificial intelligence disrupt the FMCG industry?

Sustaining profitability in highly competitive sectors is a major challenge for
businesses. This is felt more in the FMCG sector where customers are becoming
choosier and fickler, despite personalized offers and services. The need of the hour
for FMCG businesses is better decision-making driven by highly accurate predictions
of user behavior. Increasing operational efficiency while keeping in mind customer
choices, changes in demand patterns, etc., helps businesses sustain profitability. The
overall goal should be improved customer experiences, which can be achieved
through key insights. However, the exercise needs to be cost-effective too. Hence,
the insights need to be derived from data gathered across all aspects of the supply
chain.
This is where artificial intelligence (AI) plays an important part and enables a direct
connection between businesses and their customers. This point is very significant as a
great part of the FMCG business is conducted through third parties like retailers.
From using virtual assistants to offering innovative shopping experiences, AI is
disrupting the FMCG industry. Many global FMCG giants use AI to power
intelligent experiences for their consumers. From understanding social media
behavior to incorporating technology, they are constantly innovating.

AI can disrupt the FMCG industry in the following ways:

• Improving workflows

• Understanding customer behavior

• Improving product designs

• Making the best of marketing and ad spends

• Ensuring better customer experiences Improving workflows:

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Today, there is no better technology than AI to improve workflows and gain
operational efficiency. Automating inventory and logistics management and other
complex processes, tracking employee performances, managing the load of customer
support agents, etc., are some AI application scenarios that can help businesses
achieve operational efficiency. They gain by way of reduced cost and time, and
improved speed and accuracy in all workflows.

Reduced human errors is a significant gain achieved through automated workflows or

robotic process automation services. More importantly, AI can help FMCG
businesses ensure regulations. Once regulatory requirements are fed into the AI-
powered systems, they can be monitored for any violations. By having an impact on
processes such as identifying defective products not meeting the standards and safety
lapses in food items, AI can improve the quality of workflows by leaps and
bounds.

4. Skills-Based Hiring Over Degree-Based Hiring

Employers are increasingly prioritizing skills and experience over formal education.
Companies now recognize that traditional degrees may not always reflect the
capabilities required for modern jobs. As a result:
• Certifications, boot camps, and online courses are becoming more valued.

• Companies like Google and IBM offer skill-based hiring programs.

• Soft skills such as critical thinking, adaptability, and emotional intelligence

are becoming essential.

5. Demographic Shifts in the Workforce

Changes in demographics are influencing workforce trends in various ways:

• Aging Population: Older workers are delaying retirement, leading to a
multigenerational workforce.

• Gen Z and Millennials: Younger generations prioritize work-life balance,

mental health, and meaningful work.

• Diversity and Inclusion: Organizations are focusing on creating inclusive

workplaces with equal opportunities for all.

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Financial Performance and Investment Trends

Financial markets and investment strategies are constantly evolving due to economic
conditions, technological advancements, regulatory changes, and investor
preferences. Understanding these trends helps businesses, investors, and
policymakers make informed decisions. Below is an in-depth analysis of key
financial performance and investment trends shaping the global economy today.

o Overview of Financial Market in India

India’s financial market plays a crucial role in the country’s economic framework.
The market encompasses a wide variety of financial instruments, including stocks,
bonds, mutual funds, and derivatives. Each instrument provides distinct avenues for
investment and risk management, catering to diverse investor profiles.
The versatility of financial platforms contributes significantly to India’s robust
economic framework. Stock exchanges, such as the Bombay Stock Exchange (BSE)
and National Stock Exchange (NSE), facilitate equity trading, offering investors
access to a broad spectrum of listed companies. The bond market, both government
and corporate, provides essential financing avenues for entities while presenting
investors with secure income options.
Foreign Direct Investment (FDI) inflows represent a vital component of India’s
financial market. These inflows stimulate growth by providing capital, technology,
and management expertise. Regulations initiated by the Government of India, such as
the Foreign Exchange Management Act (FEMA), govern these investments, ensuring
a conducive environment for foreign stakeholders.
The Reserve Bank of India (RBI) functions as the apex regulatory authority
overseeing the financial market. Its regulatory framework fosters stability, ensures
sound banking practices, and manages monetary policy. This oversight safeguards
investor interests while promoting transparency and efficiency in transactions.
Continuous technological advancements impact the financial market positively.
Digital trading platforms and mobile applications simplify access for investors,
enabling real-time transactions and informed decision-making. An increasing number
of retail investors engage with the market, driving demand for financial literacy
initiatives.
Taxation policies also significantly influence investment decisions in India.
Instruments like Equity-Linked Saving Schemes (ELSS) offer tax benefits under
Section 80C of the Income Tax Act, encouraging individual investors to explore
equity markets.

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The diverse financial instruments, regulatory frameworks, and technological
innovations collectively shape India’s financial landscape. Stakeholders in the market
must navigate these elements to leverage opportunities while understanding
associated risks effectively.

1. Interest Rate and Inflation Impact on Investments

Macroeconomic factors like interest rates and inflation significantly affect investment
decisions:
• High inflation reduces purchasing power and impacts bond yields.

• Rising interest rates make borrowing costlier, slowing down economic

growth.

• Investors shift to defensive sectors like consumer staples and healthcare

during uncertain periods.

2. Alternative Investments on the Rise

Investors are diversifying beyond traditional stocks and bonds into alternative assets
such as:

• Real estate investment trusts (REITs).

• Hedge funds and private debt.

• Collectibles, art, and commodities like gold and silver.

3. Retail Investing and Social Trading

The rise of commission-free trading apps (e.g., Robinhood, eToro) has led to:

• Increased participation of retail investors in stock markets.

• Social trading platforms where investors follow strategies of experts.

• Volatility driven by meme stocks and online communities (e.g., GameStop,

AMC)

Conclusion
Financial performance and investment trends are constantly evolving due to global

15
economic changes, technology, and investor behavior. Successful investors and
businesses must adapt to these trends by staying informed, diversifying portfolios,
and leveraging new technologies.

Financial Market in India: Insights, Trends, and Investment

Opportunities

Future Outlook and Emerging Trends in Industry Classification

Industry classification helps categorize businesses based on economic

activities. It is essential for market research, investment strategies, and
policymaking. Here’s an overview of the future outlook and emerging trends
across industries:

1. Industry Classification Overview

Industries are classified into broad sectors using global standards like:
• NAICS (North American Industry Classification System)
• ISIC (International Standard Industrial Classification)
• GICS (Global Industry Classification Standard – used in finance and stock
markets) Key Industry Sectors
1. Primary Sector – Agriculture, Mining, Forestry
2. Secondary Sector – Manufacturing, Construction
3. Tertiary Sector – Retail, Financial Services, Healthcare
4. Quaternary Sector – IT, R&D, AI, Data Analytics
5. Quinary Sector – Government, High-Level Decision Making

1. Future Outlook & Emerging Trends by Industry Technology & IT

Future Outlook:
• AI, Cloud Computing, and 5G revolutionizing businesses
• Web3, Blockchain, and Cybersecurity shaping digital infrastructure Emerging
Trends:
• AI-driven automation
• Growth in Software-as-a-Service (SaaS)
• Rise of Metaverse & Virtual Workspaces Financial Services Future
Outlook:
• Digital banking, fintech startups, and cryptocurrency innovations
• AI-driven risk assessment and fraud prevention Emerging Trends:
• Decentralized Finance (DeFi)
• ESG (Environmental, Social, and Governance) investing

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 • AI-powered robo-advisors for investment management Healthcare &
Biotechnology Future Outlook:

• Personalized medicine and AI-driven diagnostics

• Telemedicine and remote healthcare expansion Emerging Trends:
• Wearable health technology (smartwatches, remote monitoring)

Technology Advancement and Innovation in FMCG Industry :-

Fast-moving consumer goods are one of the most significant sectors that supply
consumers with things when they need them. Maintaining a business's profitability
is a major task. AI technology is already being used by the majority of FMCG
companies in their core systems to improve their operations, deliver excellent
customer service, and outperform their competitors.
The Fast-Moving Consumer Goods (FMCG) industry evolves to meet demands for
convenience, adapt to market impacts, and address shifts in customer behaviour.
FMCG companies adopt omnichannel sales and e-commerce strategies, leveraging
big data, analytics, and AI to gain a competitive edge.

 FMCG Technology and innovation key points

1. Sustainability in FMCG
Climate change awareness is developing among customers, leading to a shift in their
tastes. They now preference towards companies is prioritize social responsibility and
offer sustainable options for the product.

2. Digitalization
In the fast-moving consumer goods (FMCG) industry, digital transformation is
improving. Brands are connecting with consumers through a range of online and
offline channels, sources, such as social media platforms, websites, and mobile
applications of FMCG digital trends. Additionally, it enables FMCG brands to better
interact with their customers and turn one-time purchasers into repeat customers.

3. Omnichannel
Omnichannel in B2C refers to the strategy of allows customers make purchases using
any channel they choose. Voice assistants, smartphones, desktop computers,
marketplaces, and other platforms can all be used to access belongings. Its approach
to sales channels is generally fluid, and the designs of the building may be easily
expanded to include new touch points.

4. Marketplaces

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Because they can address one of the most prevalent problems, marketplaces are
crucial to the sector. That is the low level of sales channel diversification. By
resolving this problem, you may expand your sales channels and minimizing
expenses.

Example: If you sell your goods online, you need to be very careful about how you
integrate them with sites like Amazon. You can quickly create your own market or
connect with any external marketplace using trendy eCommerce systems.

5. E-Commerce
Both B2C and B2B sales are increasing in the FMCG industry due to e-commerce.
This change in customer purchasing patterns toward online channels has been
expedited by the
COVID-19 epidemic. In an effort to boost customer engagement, brands are
improving their online visibility.

Example :- Social media platforms, such as Instagram, are becoming significant e-

commerce players, with an increasing number of items sold via these platforms.
FMCG startups are utilizing diverse media, including mobile and headless
commerce, for product marketing.
6. Big Data & Analytics
Big data is revolutionizing the FMCG industry, providing valuable insights into
customer behavior. FMCG analytics offer a deeper understanding of purchasing
habits, driving product development. These technologies also enable market trend
forecasting, aiding strategic planning.

7. AI in FMCG
AI-powered solutions, such as machine learning (ML) and natural language
processing (NLP) are transforming the FMCG industry. Voice-based systems offer
round-the-clock support, assisting consumers in product discovery. Recommendation
engines, another AI application, deliver personalized product suggestions, enhancing
the customer experience. Further, AI contributes to the predictive maintenance of
manufacturing equipment, reducing downtime and boosting productivity.

8. Direct-to-Consumer Distribution
Direct distribution is becoming a popular strategy among FMCG companies, aiming
to boost customer loyalty and growth. Manufacturers are establishing direct
interactions with end customers via their own distribution channels, both online and
offline. This strategy not only increases profit margins but also provides consumers
with a direct link to their preferred brands.

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 Example: - This strategy offers cost savings and pricing flexibility by lowering
dependency on middlemen. The FMCG industry's direct distribution trend is in line
with the expansion of e-commerce as well as the pervasive use of smartphones and
the internet.

 Economic Impact of Industry

The economic impact of industry is significant, as it acts as a primary driver of

economic growth by generating employment, producing goods and services vital for
daily life, contributing to a country's exports, stimulating technological innovation,
and influencing overall market trends and productivity levels across various sectors;
essentially, a thriving industrial sector is considered a cornerstone of economic
prosperity.

Key aspects of the economic impact of industry:

I. Employment generation: Industries create a substantial number of jobs, directly

through manufacturing and production roles, and indirectly through supporting
services like logistics and retail.

II. GDP contribution: The production of goods within an industrial sector directly
contributes to a nation's Gross Domestic Product (GDP).

III. Export potential: Export-oriented industries can significantly boost a country's

foreign exchange earnings and improve its balance of payments.

IV. Technological advancement: Industrial research and development often leads to new
technologies and innovations that can benefit multiple sectors of the economy.

V. Infrastructure development: Industrial growth often necessitates investments in

infrastructure like transportation networks, which can benefit the broader economy.

VI. Urbanization: The concentration of industries in certain areas can lead to population
growth and the development of urban centers.

Factors influencing the economic impact of an industry:

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 Industry type: Some industries, like technology or pharmaceuticals, may have
a greater impact on innovation and R&D compared to others.

 Economic structure of a country: The level of industrial development in a

country can significantly influence its economic growth.

 Government policies: Government incentives and regulations can play a

crucial role in promoting or hindering industrial development.

An economic impact analysis typically measures or estimates the change in economic

activity between two scenarios, one assuming the economic event occurs, and one
assuming it does not occur (which is referred to as the counterfactual case). This can
be accomplished either before or after the event (.
An economic impact analysis attempts to measure or estimate the change in
economic activity in a specified region, caused by a specific business, organization,
policy, program, project, activity, or other economic event. The study region can be a
neighborhood, town, city, county, statistical area, state, country, continent, or the
entire globe.

Economic impact analysis - Wikipedia

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 Merger Acquisition And Partnership

According to a recent report by Deloitte, the FMCG industry saw a peak in merger
and acquisition activity in 2023, with over 175 deals reported, indicating a significant
number of companies involved in mergers, acquisitions, and partnerships within the
sector; however, the exact number of companies participating in these activities is not
readily available as it fluctuates based on the specific deals and time frame
considered.

Key points to remember:

• High M&A activity in 2023: The FMCG industry experienced a surge in

mergers and acquisitions in 2023.

• Focus on core business: Recent trends show FMCG companies prioritizing

acquisitions within their core business categories rather than diversifying
widely.

• Market consolidation: This trend is likely driven by the need to strengthen

profitability amidst competitive pressures and inflation.

Example :

Colgate-Palmolive:

The Colgate-Palmolive Company was formed in 1928 when the Colgate and
Palmolive-Peet companies merged. The merger combined the three largest soap and
perfumery companies in the United States at the time.
How the merger happened

• In 1927, the combined sales of the three companies exceeded $100 million.

• In June 1928, rumors circulated that Palmolive-Peet was negotiating to buy

Colgate.

• The merger was effective on July 1, 1928.

• The new company was called the Colgate-Palmolive-Peet Company.

21
 • In 1953, the companies became a joint venture called the Colgate-Palmolive
Company.

• Deal Value: $100 million.

Closed Date: July 1, 1928.

Acquired by: Colgate
Mergers and Acquisitions (M&A) | Definition, Types, & Process

Players in the Industry

[Link] of key players in the industry:

In any given industry, "key players" refer to the major companies, organizations, or
individuals who significantly influence the market dynamics, including
manufacturers, distributors, retailers, suppliers, and sometimes even large customer
groups, all playing a crucial role in production, distribution, and market penetration
within that sector; essentially, they are the most prominent actors shaping the
industry landscape.
2. Market share and competitive positioning:
"Market share" refers to the percentage of total sales within a specific market that a
company holds, essentially indicating how big a slice of the "pie" they own compared
to their competitors, while "competitive positioning" describes how a company
strategically differentiates itself from rivals in the market, highlighting its unique
strengths and value proposition to stand out and attract customers.
[Link]

3. Major companies and their profiles:

1. Hindustan Unilever Limited (HUL): A market leader in the FMCG sector, HUL
sells a wide range of household and personal care products.
2. Britannia Industries: An Indian multinational food products company that sells
biscuits, breads, and dairy products.
3. ITC Limited: A top FMCG company in India with a strong market presence and
diverse product portfolio.
4. Nestlé India: A top FMCG company in India.
5. Dabur India: A top FMCG company in India.
[Link]
[Link]

4. Business models and Strategies:

A "business model" describes how a company operates and generates revenue,

22
outlining its core components like customer segments, value proposition, distribution
channels, and revenue streams; while a "business strategy" is the plan a company
uses to achieve its goals within a specific market, including tactics and actions to
implement the chosen business.
5. Competitive landscape analysis:
A competitive landscape analysis is a process that helps a business understand its
competitors and market position. It involves identifying competitors, researching
their strengths and weaknesses, and analyzing their sales and marketing strategies.
[Link]

Followers

• Introduction to industry followers :-

The "FMCG" industry, which stands for "Fast-Moving Consumer Goods," refers to a
sector encompassing products that are frequently purchased by consumers, have a
relatively low price point, and are quickly consumed or replaced, such as food items,
beverages, personal care products, and household cleaning supplies;

[Link]
q=introduction+to+industry+followers+of+fmcg+industryrlz

• Identification of followers in the industry :-

A "follower" in the FMCG (Fast-Moving Consumer Goods) industry refers to a

company that operates within the FMCG market, but typically holds a smaller market
share and follows the strategies and trends set by larger, leading companies in the
sector, often imitating their product offerings, marketing tactics, and distribution
channels.

[Link]

• Competitive strategies of followers :-

In the FMCG industry, a follower strategy often focuses on identifying gaps in the
market left by market leaders, offering niche products with unique features,
leveraging cost-effective production methods, building strong distribution networks,
and heavily relying on targeted marketing campaigns to carve out a specific
consumer segment

Key strategies for an FMCG follower:

23
Niche Market Focus, Product Differentiation, Targeted Marketing

Campaigns, Fast Innovation, Branding through Value Proposition

[Link]
q=competitive+strategies+of+follower+of+the+fmcg+in dustry&rlz

• Challenges faced by followers :-

The FMCG (fast-moving consumer goods) industry faces many challenges, including

supply chain issues, consumer preferences, and competition.

[Link]

• Market positioning of followers :-

In the FMCG industry, "followers" typically refer to a brand's social media audience,
and their market positioning is crucial for building brand awareness, loyalty, and
engagement by creating a perception of authenticity and connection with consumers
through consistent interaction and relevant content, often leveraging influencer
marketing to tap into established communities and trusted voices within the target
market.

Key aspects of follower market positioning in FMCG :

Community building, Content strategy, Influencer partnerships, Targeted

engagement

[Link]
q=market+positioning+of+followers+in+fmcg+industry &rlz

• Future outlook and challenges for followers :-

The FMCG market is projected to grow at a CAGR of 27.9% from 2021 to 2027,
reaching nearly USD 615.87 billion.

The Biggest Challenges Faced by the FMCG Industry In 2024

The FMCG industry has been facing significant challenges such as increasing
consumer demand, low consumer spending power, a rise in health concerns,
government regulations, and a highly competitive market environment.

24
Market Shares of Top 5 & Bottom 5 Players

Overview of Market Share Analysis:

The Fast-Moving Consumer Goods (FMCG) sector in India is one of the largest and
most dynamic sectors, characterized by a high turnover of products. Major players in
this sector include Hindustan Unilever, ITC, and Nestlé India, among others.

Industry Market Size and Segmentation:

The market is segmented by product type into personal care, food & beverages, home
care, health & hygiene, and over the counter (OTC) products. Recently, personal care
products dominate this segment due to increased consumer interest in grooming and
wellness.

Identification of the Top 5 Players:

1. Hindustan Unilever: 34.6% market share

2. Nestle India: 14.2% market share

3. Procter & Gamble: 10.3% market share

25
4. Britannia Industries: 8.5% market share 5. Godrej Consumer Products: 6.2%

market share

Strategies of the Top 5 Players:

The top 5 players are focusing on:

- Expanding product portfolios

- Investing in digital marketing and e-commerce

- Enhancing distribution networks

- Focusing on rural markets

- Investing in research and development

Customer Base and Brand Recognition of Top 5 Players:

- Hindustan Unilever: 400 million+ customers

- Nestle India: 200 million+ customers

- Procter & Gamble: 150 million+ customers

- Britannia Industries: 100 million+ customers - Godrej Consumer Products: 80

million+ customers.

Identification of the Bottom 5 Players:

1. Emami: 2.5% market share

2. Dabur India: 2.3% market share

3. Marico: 2.2% market share

4. Jyothy Labs: 1.9% market share

5. Karnataka Soaps and Detergents: 1.7% market share

Business Strategies of the Bottom 5 Players:

- Expanding product portfolios

- Investing in digital marketing and e-commerce

- Enhancing distribution networks

- Focusing on niche markets

- Investing in research and development

26
Competitive Disadvantages of the Bottom 5 Players:

- Limited resources

- Lack of brand recognition

- Intense competition

- Limited distribution networks

- High marketing and advertising expenses

Introduction to Niche Players

A "niche player" in the Indian FMCG (Fast Moving Consumer Goods) industry is a
smaller company that focuses on selling very specific products to a specific group of
customers, rather than trying to appeal to a large general audience like larger brands;
Essentially, they target a specialized market where they can offer unique features or
satisfy a distinct need that larger firms do not fully address.
Indian economy's fourth largest sector is fast-moving consumer goods (FMCG).
Generally, consumer packaged goods are quick to produce, distribute, market
and consume, characterized by high turnover.

➢ Examples of niche FMCG players in India could be:

• A company making organic, gluten-free snacks for people with dietary

restrictions.

• A brand that produces natural skincare products specifically for sensitive

skin.

• A manufacturer of traditional Indian herbal remedies targeting a specific

health concern.

➢ Competitive Advantages of Niche Players

Niche players often benefit from competitive advantages in the FMCG market, such
as less competition, better customer knowledge, increased brand loyalty, the capacity
to meet particular needs, and a targeted marketing approach that enables them to
successfully target a smaller market segment with customized goods and services,
which may result in higher profit margins.
• Less competition: - Niche players are less competitive than larger FMCG
brands because they focus on a smaller, specific market segment.

• Deep customer insights: - Niche players can better understand the needs and
wants of consumers by taking a targeted approach, which enables them to
create goods and services that are tailored to those demands.

27
 • Strong brand loyalty: - Offering tailored products and services to a specific
market segment helps niche players build loyal customers.

• Premium pricing potential: - Niche products often perceived as high quality

or specialized can be priced at a premium, leading to higher profit margins.

• Efficient marketing: - Marketing strategies can be more effective when

niche players target their advertising and promotional efforts more precisely.

Key challenges for niche FMCG players:

• Distribution limitations: - Smaller sales volumes and restricted distribution

networks can make it difficult to reach a wide range of retailers and
consumers, resulting in higher costs per unit sold.

• Cost pressures: - Niche players often face higher production costs due to
smaller batch sizes and specialized ingredients, impacting profit margins.

• Marketing challenges: - Building brand awareness and customer loyalty can

be harder for niche players compared to large, established brands with bigger
marketing budgets.

• Supply chain complexity: - Managing a targeted supply chain to effectively

reach specific customer segments within a niche market can be challenging.

• Competition from larger players: - Established FMCG companies may

enter niche markets with their own specialized products, creating intense
competition.

• Consumer perception: - Convincing consumers to try a new, niche product

and overcoming the perception of established brands can be difficult.

Technology and Innovation in Niche FMCG markets:

➢ Personalized Nutrition:

• Genetic testing: Analyzing a customer's DNA to create customized dietary

supplements or food products tailored to their nutritional needs.

• Micro-manufacturing: Producing small batches of customized food products

based on individual dietary restrictions or preferences.
➢ Sustainable Packaging:

28
 • Biodegradable materials: Developing packaging made from plant-based
materials that decompose quickly.

• Smart labels: Incorporating QR codes or NFC chips on packaging to provide

information on product origin, sustainability credentials, and recycling
instructions.
•

Introduction to Differentiation and Positioning

In the FMCG (Fast Moving Consumer Goods) industry, “differentiation” means

creating unique features or benefits for a product that set it apart from competitors,
while “positioning” refers to the deliberate image or perception a company wants
consumers to have of their product relative to other options in the market, essentially
defining where it “stands” within the consumer’s mind; both strategies are crucial for
gaining a competitive edge by appealing to specific customer needs and desires.

• Positioning Strategies of Key Player:

1. Brand Positioning:

The cornerstone of any FMCG branding strategy is effective brand positioning.

2. Target Audience Identification:
Knowing your audience is paramount in FMCG branding. A deep understanding of
consumer demographics, preferences, and behaviors guides product development and
marketing strategies.

Unilever: Continuously developing new product variations and

formulations across categories like Dove (skin care), Surf Excel
(detergent),

o Brand Positioning:

Coca-Cola: Building a strong brand image around happiness and refreshment

through consistent marketing campaigns.

o Sustainable Practices:

Aveda: Emphasizing natural ingredients and environmentally friendly packaging in

their hair and skincare products.

o Targeted Marketing:

L’Oreal: Tailoring marketing strategies to different age groups and ethnicities

through diverse product ranges.

29
 o Digital Engagement:

Amazon: Utilizing their online platform to directly reach consumers with

personalized product recommendations.

Marketing and communication tactics for positioning. Understanding the target

audience allows an FMCG Agency to customize marketing.

Introduction to Branding Strategies

A branding strategy, when introduced, refers to a comprehensive plan outlining how

a company will present itself to the market, establishing a unique identity by defining
its values, personality, and market positioning, aiming to build recognition and
preference among consumers through consistent messaging and visual elements
across all touchpoints.
When branding FMCG (Fast Moving Consumer Goods) products, key strategies
include: defining clear brand values, understanding target audiences, emphasizing
product differentiation, utilizing strong visual identity, leveraging social media and
influencer marketing, running targeted promotions, and building brand loyalty
through customer engagement; all while focusing on creating a recognizable and
trusted brand image that aligns with consumer needs and buying habits.
Overview of Key Players and Their Branding Strategies:

Key aspects of a branding strategy introduction:

1. Target Audience Understanding:

Clearly identifying the specific customer group a brand wants to reach and tailoring
messaging to resonate with their needs and desires.

2. Brand Identity Development:

Creating a distinct visual representation of the brand through elements like logo,
color palette, typography, and overall design aesthetic.

3. Brand Messaging:
Crafting a clear and consistent communication style that conveys the brand’s values,
story, and unique selling proposition.

4. Brand Positioning:

30
Defining how the brand differentiates itself from competitors within the market and
where it wants to be perceived by consumers.

5. Brand Experience Management:

Ensuring a consistent brand experience across all customer interactions, including
website, social media, packaging, and customer service.

Chapter No. 2. Company Profile

Marico Limited

2.1 Company Name Marico Limited

 Founded Year 2 April 1990

 Headquarters Mumbai
 Ownership Harsh Mariwala
 Ticker/Traded as National Stock Exchange (NSE)
Bombay Stock Exchange (BSE)

 Founder Harsh Mariwala

 Company Focus Beauty and Wellness sector
 Revenue (2024) ₹98.28 billion (₹98,280 million)
 Operating income ₹1,937 crore (approximately $220 million)
 Net income ₹1,502 crore (approximately $170 million)
 Market Focus Category Software Development
 Global Presence Over 25 countries across Asia and Africa

2.2 C-Level Management

Owner oF Company Harsh Mariwala

Chief Executive Officer (CEO) Saugata Gupta

31
 Chief Financial Officer (CFO) Pawan Agrawal

Chief Operating Officer Vaibhav Bhanchawat

(COO)
Chief Technology Officer
(CTO)
Chief Human Resources Amit Prakash
Officer (CHRO)

Chief Marketing Officer Somasree Bose Awasthi

(CMO)

2.3 Product/Services Category:

Marico Limited
[Link]
Services Description

Innovation and Research To create new products and enhance existing ones.
and development (R&D) They focus on health-conscious products, natural
ingredients, and new formulations to meet evolving
consumer demands in areas such as hair care, skin
care, and food.
Branding and Advertising They use multi-channel marketing strategies,
including TV, digital media, and influencer
campaigns, to build brand awareness and customer
loyalty.
Logistics and Distribution This service involves warehousing, transportation,
and managing relationships with distributors and
retailers.
Sustainability & They focus on reducing their environmental impact
Corporate Social and improving community well-being.
Responsibility (CSR)

Customer Service & To handle queries, complaints, and returns.

Support
E-commerce Services e-commerce strategies to ensure their products are
easily available on platforms like Amazon, Flipkart,
and other online marketplaces.

Product Description

Hair Care Products Parachute Coconut Oil, Livon Serum, Nihar Naturals
Shampoo.

32
 Edible Oils Saffola Active, Saffola Gold, Parachute Coconut Oil.

Health & Wellness Saffola Masala Oats, Saffola Oats.

Products
Beverages Saffola Green Tea (in different flavors).

Skin Care & Beardo Beard Oil, Beardo Face Wash, Beardo Shampoo,
Personal Care Livon Silky Potion, Livon Face Serum, Nihar Naturals
Products Coconut Hair Oil.
Home Care Products Tata Q Meal Kits (including gravies, snacks, and ready-to-
cook items).
Ready-to-Eat & kits for dishes like Tandoori Paneer, Butter Chicken, and
Convenience Foods Dal Makhani.

Beverages Saffola Green Tea (in different flavors).

2.4 Key Strategies Of company

1. Innovation
Innovation is a key catalyst for growth in the fast paced and dynamic business
environment that we operate in today. Marico has ramped up its new product
development efforts by refining and streamlining its processes and is making
concerted attempts towards offering unique consumer propositions. In order to render
the process more agile, the approval matrix for introduction of new variants or
extensions of existing product lines has been simplified. Only big ticket ideas or
proposals of entry into new categories require the sanction of the Innovation Council
(headed by the MD & CEO). Each new product idea is led from inception to launch
by a dedicated cross functional team to ensure robust planning and execution. The
Company encourages experimentation and calculated risk-taking to increase the
probability of success of radical/pioneering ideas to get quantum results.

2. Customer-Centricity

 Description: Marico places a strong emphasis on understanding and meeting

the needs of its customers. The company uses in-depth market research,
consumer feedback, and trend analysis to create products that align with
evolving consumer preferences.
 Approach: Marico continuously innovates based on consumer insights,
ensuring that its products address both functional and emotional needs.
Examples include launching healthier food products like Saffola Oats and

33
 Saffola Active Oil, driven by growing consumer interest in health and
wellness.
 Outcome: Marico has established brand loyalty and a deep connection with
its customers, driving sustained market leadership and consumer trust.
3. Digital Transformation

 Description: Marico has been increasingly integrating digital technologies

into its operations, from product development to consumer interaction.
 Approach: The company has embraced e-commerce, digital marketing, and
consumer data analytics to engage customers directly and personalize
experiences. Marico's brands are actively present on online platforms like
Amazon and Flipkart, helping the company reach a younger, tech-savvy
audience.
 Outcome: Digital transformation enables Marico to streamline operations,
engage more effectively with consumers, and adapt to changing buying
behaviors in a digital-first world.

3. AI Adoption

 Description: Marico is incorporating Artificial Intelligence (AI) and

Machine Learning (ML) into its operations for data-driven decision-making,
consumer insights, and product development.
 Approach: AI is used for predicting market trends, consumer behavior
analysis, and personalized marketing. For example, AI-driven platforms
help Marico identify emerging trends, optimize product formulations, and
enhance targeted marketing efforts.
 Outcome: AI adoption improves efficiency, helps in faster decision-making,
and enables Marico to offer products that better meet consumer demands.

4. Global Expansion

 Description: Marico has pursued strategic expansion into emerging markets

and international territories to drive growth outside of India.
 Approach: The company has entered countries like Bangladesh, Sri Lanka,
Egypt, and South Africa, leveraging local market insights and consumer
preferences. Marico adapts its offerings to suit the cultural and dietary needs
of each region, such as expanding into the Middle East with its hair and skin
care lines.

34
  Outcome: Global expansion has allowed Marico to diversify revenue
streams, reduce dependence on the Indian market, and tap into new growth
opportunities in fast-growing regions.
5. Strategic Acquisitions

 Description: Marico strategically acquires companies and brands to expand its

product portfolio, enter new segments, and strengthen its market position.
 Approach: The company has made acquisitions in the personal care, health
food, and grooming sectors. For example, Marico acquired Set Wet (a male
grooming brand) and Kaya Skin Clinic (a skincare brand), allowing it to
innovate in these spaces.
 Outcome: These acquisitions help Marico expand its portfolio, enter new
market segments, and gain access to new consumer bases quickly,
accelerating growth.

6. Employee Engagement
 Description: Marico believes in fostering a strong, engaged workforce,
ensuring that employees feel empowered, motivated, and aligned with the
company’s goals.
 Approach: The company focuses on creating a collaborative work culture,
offering career development programs, and promoting a healthy work-life
balance. It emphasizes employee well-being and professional growth through
initiatives like leadership training, innovation labs, and employee wellness
programs.
 Outcome: High employee satisfaction and retention rates contribute to
Marico's competitive edge, fostering a culture of innovation and continuous
improvement.
7. Partnerships

 Description: Marico forms strategic partnerships with various stakeholders,

including startups, suppliers, and distributors, to enhance its market
position.
 Approach: The company partners with external innovators to bring new
technologies and insights into product development. Marico also collaborates
with retailers and distributors to ensure its products reach a wide consumer
base.
 Outcome: Strategic partnerships help Marico tap into new technologies,
expand its distribution network, and bring innovative solutions to market
more quickly.
8. Business Model Transformation

35
  Description: Marico continuously transforms its business model to stay
ahead of market trends, adapt to new consumer behaviors, and optimize its
operations.
 Approach: This transformation includes adopting a direct-to-consumer
(D2C) model, leveraging e-commerce, and ensuring sustainability in its
operations. Marico has shifted towards offering products that support health
and wellness, responding to growing consumer demand.
 Outcome: The transformation allows Marico to operate agilely, adapt to
changing market dynamics, and increase consumer engagement, while
sustainability drives brand loyalty.

Link:[Link]
[Link]

2.5 DROC OF COMPANY:

A DROC analysis is a strategic tool used to evaluate the Drivers, Restraints,

Opportunities, and Challenges a company faces in its industry.

 Drivers (Growth Factors):

These are the positive forces that propel a company forward, like market
demand, technological advancements, or brand strength.
 Restraints (Weaknesses):
These are internal limitations or challenges that hinder the company’s growth
or ability to perform optimally, such as high competition or reliance on
outdated infrastructure.
 Opportunities:
External factors or market trends that a company can leverage to grow, such
as emerging markets, new customer segments, or product innovations.
 Challenges (Threats):
External pressures or risks that could negatively impact the company’s
operations or performance, like economic downturns, regulatory changes, or
shifting consumer preferences.

2.6 CSR Policy & Corporate Governance Initiatives

CSR Policy & Corporate Governance Initiatives are essential aspects of a company's

36
responsibility toward its stakeholders, society, and the environment. Below is an
overview of Marico's approach to Corporate Social Responsibility (CSR) and
Corporate Governance initiatives:

Health and Wellness Initiatives:

Marico supports initiatives that focus on promoting health and wellness,
especially in the rural and underserved sections of society. For instance, the
company promotes healthy eating through its Saffola brand, with initiatives
that encourage the consumption of heart-healthy oils and foods.

Education and Skill Development:

Marico has invested in education and skill development initiatives aimed at
empowering underprivileged communities. The company provides resources
and training for job-oriented skills, aiming to improve employability.

Environmental Sustainability:
Marico is committed to sustainability through initiatives that reduce its
environmental footprint. This includes efforts in reducing carbon emissions,
waste management, and water conservation.
The company has also worked on making its product packaging more eco-
friendly by using recyclable materials and reducing plastic usage.
Community Welfare:
Marico undertakes various community development projects focusing on
nutrition, sanitation, and livelihood enhancement. For example, the company
has supported communities by providing clean drinking water and sanitation
facsilities.
2. Corporate Governance Initiatives of Marico

Marico follows strong Corporate Governance practices to ensure transparency,

accountability, and ethical business practices across its operations. Key governance
initiatives include:
Board Structure and Composition:
Marico’s board comprises individuals with diverse expertise, including
independent directors who ensure objective decision-making. The company
follows the Indian Companies Act and SEBI regulations to maintain an
effective governance structure.
Transparency and Accountability:
Marico follows stringent disclosure practices to ensure transparency to
shareholders and investors. The company regularly publishes detailed
financial reports, sustainability updates, and CSR activities through its Annual
Report.
Code of Conduct:
Marico has established a Code of Conduct for its employees and leadership to
ensure ethical behavior, compliance with laws, and a culture of integrity. This
code helps guide decisions, particularly in areas like anti-corruption and
conflict of interest.
Risk Management:
Comprehensive Risk Management: Marico has a dedicated risk management
committee to identify, evaluate, and mitigate business risks, including
financial, operational, and reputational risks. This helps the company navigate

37
 uncertainties and maintain long-term stability.
Shareholder Engagement:
Marico ensures open channels of communication with its shareholders through
AGMs (Annual General Meetings) and regular updates. The company actively
seeks shareholder feedback on various governance and business matters.

Executive Compensation and Remuneration Policy:

Marico has a well-defined Executive Remuneration Policy, which aligns
executive compensation with the company’s long-term performance and
shareholder interests, ensuring that remuneration is based on the individual’s
performance and the company’s financial health.
2.7 Initiatives Towards Environmental Conservation

Marico has undertaken several environmental conservation initiatives to minimize its

ecological footprint and promote sustainability. These initiatives include:

Sustainable Packaging: Marico focuses on reducing plastic use and increasing the
recyclability of its packaging, ensuring that products are eco-friendly.

Water Conservation: The company implements water recycling and Zero Liquid
Discharge (ZLD) systems in its facilities to conserve water and minimize wastage.

Energy Efficiency & Renewable Energy: Marico works on reducing its carbon
footprint by adopting renewable energy sources like solar power and improving
energy efficiency in its manufacturing plants.

Sustainable Sourcing: Marico ensures that its raw materials, such as palm oil and
coconut oil, are sourced sustainably, supporting responsible farming and reducing
environmental degradation.

Waste Management: The company has initiatives to reduce waste generation and
promote recycling, aiming for zero waste to landfills in its production facilities.
Through these efforts, Marico is dedicated to environmental protection, helping
conserve resources, reduce waste, and contribute to global sustainability goals.

Links.
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]

38
Chapter No : 3 External Environment Analysis of
Merico Enterprises

3.1 Controlling Ministry & Regulators

The controlling ministry and regulators for Merico companies vary depending on the
location and type of company.

Ministry of Corporate Affairs: Regulates Indian enterprises, including Merico Engg

Pvt Ltd.

Ministry of Commerce and Industry: Facilitates trade, regulates markets, and

promotes economic growth.

Regulatory BodiesRegulates and maintains records of companies in the UK.

Securities and Exchange Commission (SEC): Regulates and oversees companies in
the Philippines.

Regulatory Policies at Different Levels and their impact National Level

Companies Act, 2013 (India): Regulates mergers and acquisitions.
SEBI Act, 1992 (India): Oversees listed companies.
Competition Act, 2002 (India): Prevents anti-competitive agreements.
State Level
State-specific regulations (India): Varying rules for company registration, taxation,
and labor laws.

39
Local Level
Municipal regulations (India): Local laws governing business operations, zoning, and
permits.
International Level
Global regulations (e.g., GDPR, FATCA): Compliance with international laws and
standards.

Impact of regulatory policies on the Industry/ Company

1. Enhanced credibility: Compliance with regulations can enhance Merico's reputation

and credibility.

Increased investor confidence: Regulatory compliance can attract investors and

boost confidence in the company.

Improved risk management: Adhering to regulations can help Merico manage risks
more effectively.

Negative Impacts

1. Increased compliance costs: Regulatory requirements can lead to higher costs for
Merico.

2. Operational challenges: Adapting to changing regulations can be difficult for the

company.

Industry-wide Impacts

1. Changes in market dynamics: Regulatory policies can alter market dynamics,

influencing competition and market structure.

2. Innovation and R&D: Regulations can drive innovation and R&D in certain areas,
such as sustainability and environmental protection.

3. Industry consolidation: Regulatory policies can lead to industry consolidation, as

smaller companies may struggle to comply with regulations.

3.4 Key National & Global Issues Affecting the Industry and company

Global Issues

- Global Supply Chain Disruptions: Dependence on imports and logistical bottlenecks

increase costs and delays in production and delivery.

- Geopolitical Risks: Ongoing geopolitical tensions, such as trade wars and border
issues, impact industrial growth and global markets.

40
- Environmental Sustainability: Industries face challenges in reducing pollution and
environmental impact while maintaining productivity and competitiveness.

Industry-Specific Challenges

- Low Productivity: MSMEs often operate on a small scale with limited resources,
resulting in low output and profit margins.

- Lack of Innovation: Outdated technologies and limited innovation capacity hinder

growth and competitiveness.

- Inconsistent Policies: Lack of standardized policies across the country hinders

MSME development and growt.

3.5 Government Initiatives to Promote the Industry and company

- Make in India: Launched in 2014, this initiative aims to transform India into a
global manufacturing hub, promoting investment development.
- Atmanirbhar Bharat Abhiyan: Unveiled in 2020, this program focuses on making
MSMEs sustainable, encouraging environmentally friendly technologies.
- MSME Innovative Scheme: Introduced by the MSME Ministry, this scheme
promotes innovation activities, provides equity support, and facilitates the
development of ideas into viable business propositions.

3.6 Regulatory Actions & Legal Violations

Regulatory Actions

- NFRA Penalty: The National Financial Reporting Authority (NFRA) imposed a

penalty of ₹4.5 crore on a chartered accountant and their firm for audit lapses related
to Merico Company Enterprises.

Legal Violations

FCRA Provisions: A Delhi-based company, potentially linked to Merico, was

investigated for violating the Foreign Contribution (Regulation) Act (FCRA)
provisions. The company's director and associates were accused of misusing foreign
funds.

- Companies Act, 2013: Merico Company Enterprises faced allegations of non-

compliance with the Companies Act, 2013, including failure to disclose material facts
and maintain professional skepticism during audits.

Industry-wide Concerns

41
- Audit Lapses: The NFRA's actions highlight the importance of auditors' roles in
ensuring compliance and transparency.

- Regulatory Scrutiny: The FCRA and Companies Act cases underscore the
importance of regulatory compliance for companies operating in India.

Chapter 4: Financial Analysis

[Link] Trends – Marico Limited, a leading Indian fast-moving consumer

goods (FMCG) company, has exhibited consistent profitability in recent quarters.
Here's an overview of their financial performanceFY2024(January–March 2024)
Net Profit: ₹318 crore, a 5.3% increase from ₹302 crore in the same quarter of the
previous year.
^ Revenue: ₹2,278 crore, up 1.7% year-over-year.
^Domestic Volume Growth: 3%.
₹4crore, a 12.5% increase, with an EBITDA margin of 19.4%, up by 190 basis
points.

[Link] Growth Analysis: Marico's :strategic price adjustments, particularly in

response to rising raw material costs like copra, have contributed to these positive
results. The company has also initiated "Project SETU," aiming to expand its direct
outlet reach from 1 million to 1.5 million by FY2027, enhancing its market presence.
Marico Limited, a prominent Indian consumer goods company, has experienced
varying revenue growth over recent fiscal years.

Segment Wise:
In FY23, the Foods segment achieved approximately ₹600 crore in revenue, marking
a 20% growth compared to the previous year. The company aimed to scale this to
₹850 crore by FY24
Marico plans to further double the scale of its Foods business by FY27, targeting a

42
compound annual growth rate (CAGR) exceeding 20%.

3. EBITDA Trends – Marico Limited has shown a stable and improving trend in its
EBITDA performance over recent quarters, reflecting operational efficiency and
strategic cost management. In FY25, the company reported an EBITDA of ₹604
crore, marking a 12.9% increase from ₹535 crore in the same quarter of the previous
year, with an EBITDA margin of 22.7%. However, in FY25.

-EBITDA CAGR: 22% from FY22 to FY24

-EBITDA Growth Rate: 25% in FY24 vs. 18% in FY22

Challenges and Opportunities - Marico Limited has shown a stable and improving
trend in its EBITDA performance over recent quarters, reflecting operational
efficiency and strategic cost management. In FY25, the company reported an
EBITDA of ₹604 crore, marking a 12.9% increase from ₹535 crore in the same
quarter of the previous year, with an EBITDA margin of 22.7%. However, in Q3
FY25, while EBITDA rose modestly by 4% year-on-year to ₹533 crore, the EBITDA
margin declined to 19.1%, down 210 basis points, largely due to input cost
fluctuations and increased investments in brand building.

4. Investment & Capex Trends –Key Cost Drivers :

Marico Limited has demonstrated a consistent approach to capital expenditure
(Capex) and investments over recent years, focusing on capacity expansion,
maintenance of manufacturing facilities, and strategic acquisitions to drive growth.
FY2022: Marico's Capex stood at ₹132 crore, continuing its focus on capacity
expansion and maintenance.
FY2023: The company reported a Capex of ₹182 crore for capacity expansion and
maintenance

5. Key cost drivers:

Marico Limited’s cost structure is influenced by several key drivers that impact its
overall profitability and operational efficiency. These cost drivers are central to its

43
financial strategy and business performance:

1. Raw Material Costs

Copra (dried coconut kernel): This is a major input for Parachute coconut oil, one of
Marico’s flagship products

[Link] and Logstics

Packaging materials: With an emphasis on innovation and sustainability, packaging
remains a substantial cost, especially with rising raw material prices for plastics and
paper-based alternatives

[Link] and Advertising (A&P Expenses)

Marico consistently invests in brand building. A&P (advertising and promotion)

expenses are a key cost to maintain and grow brand visibility, especially in
competitive categories like personal care and health foods.

4. Employee Costs
With operations across India and overseas, Marico incurs employee-related expenses
for talent acquisition, training, and retention.

6. Debt-to-Equity Ratio Trends –Marico Limited's debt-to-equity ratio has remained

low over recent years, indicating a conservative approach to leveraging.
Return on Equity (ROE) & Return on Assets (ROA) –

Quick Ratio :
Return on Equity (ROE) and Return on Assets (ROA) are key financial performance
metrics used to evaluate a company's profitability and efficiency in utilizing
resources. ROE specifically measures how well a company generates profits from its
shareholders’ equity. It is calculated by dividing net income by shareholders' equity.

7. Liquidity Ratios (Current & Quick Ratios) – Ratio and Quick Ratio, provide
insights into the company's ability to meet its short-term obligations.

Current Ratio:

This ratio measures the company's capacity to cover its short-term liabilities with its
short-term assets. A higher current ratio indicates a stronger liquidity position.
Fiscal Year Ending March 31, 2024: The current ratio was 1.64, showing a 4.15%
increasee from 1.57 in the previous fiscal year.

Quick Ratio :
Also known as the acid-test ratio, this metric assesses the company's ability to pay off
short-term liabilities without relying on inventory sales. The quick ratio has remained
relatively stable, with minor variations over the years, indicating a consistent ability to
cover immediate liabilities with liquid assets.

[Link] Capital Management – Marico Limited, a prominent player in the

consumer goods sector, has consistently demonstrated effective working capital
management, ensuring robust liquidity and operational efficiency.

44
-Working Capital Components:
-Current Assets: In FY23, current assets increased by 8.8% to ₹38.13 billion,
reflecting strategic investments in inventory and receivables to support sales growth.

Factors Affecting Working Capital Management –

1. Inventory Management: the company's inventory management practices have
impacted its working capital requirements. Marico has implemented a comprehensive
Stock Keeping Unit (SKU) rationalization exercise aimed at optimizing inventory
levels.

2. Receivables Management
The company enforces strict credit control measures to expedite the collection of
receivables. By closely monitoring customer creditworthiness and setting
appropriate credit limits, Marico enhances cash flow and reduces the days sales
outstanding (DSO), thereby improving liquidity.

Enhance Cash Flow Forecasting: Accurate cash flow projections help businesses
anticipate future financial positions, enabling informed decisions on expenditures and
investments.
Optimize Accounts Receivable: Implementing efficient invoicing systems and
offering incentives for early payments can accelerate cash inflows. Conversely,
establishing clear credit policies and conducting thorough credit assessments can
minimize the risk of late or defaulted payments.
Manage Accounts Payable Efficiently: Negotiating favorable payment terms with
suppliers allows businesses to extend payment periods without incurring penalties,
thereby improving liquidity.
Inventory Optimization: Adopting lean inventory practices and utilizing just-in-time
(JIT) systems can reduce holding costs and free up cash tied in unsold goods.
Utilize Working Capital Financing: Establishing lines of credit or other financing
options can provide quick access to funds during short-term cash shortages, ensuring
uninterrupted operations.

Leverage Technology and Automation: Implementing digital tools for financial

operations can streamline processes, reduce errors, and provide real-time insights into
working capital components.

Rising Raw Material Costs: The company has faced increased prices for key inputs,
notably a 25% year-on-year surge in copra prices, essential for coconut oil production.

International Market Performance: Marico's international business has shown

45
resilience amid macroeconomic challenges and currency devaluation in certain
regions.

10. Turnaround Strategies of ‘Sick’ Companies – Operational Turnaround

Strategies

Cost Reduction: Implement cost-cutting measures to reduce overhead expenses,

renegotiate contracts, and optimize resource allocation.
Example: Reduce energy consumption by installing energy-efficient lighting and
equipment.

Process Optimization: Streamline business processes, eliminate inefficiencies, and

improve productivity.
Example: Implement lean manufacturing techniques to reduce waste and improve
efficiency.
Asset Utilization: Optimize asset utilization, dispose of underutilized or non-core
assets, and invest in new assets that support growth.’

Example: Sell underutilized assets to generate cash and reduce maintenance cost
Diversification: Explore new markets, products, or services to reduce dependence on
a single revenue stream.

Example: Enter new geographic markets to increase revenue.

Market Repositioning: Rebrand, reposition, or refocus the company to appeal to new
customers or markets.

Partnerships and Collaborations: Form strategic partnerships or collaborations to

access new markets, technologies, or expertise.
Example: Collaborate with a research institution to develop new products.

46
 Chapter 5: Recent Developments

1. Impact of Latest Fiscal Policy on Industry andCompany Both -

FMCG Industry –

Fiscal policy involves government spending and tax policies that influence economic
conditions and activity.

Potential Impacts of Fiscal Policy on Industry and Companies

Corporate Tax Rates: If the government lowers corporate tax rates, companies like
Merico Enterprises may experience increased profits, allowing for investments in
growth or improved profitability.

Government Spending:

Increased government spending on infrastructure can lead directly to more business

for sectors involved in construction, engineering, or suppliers of materials, potentially
benefiting companies like Merico if they are involved in those industries.

Volume Growth: FMCG sales are expected to grow 5.2% due to price increases,
with volume growth remaining stable.

Premiumization: Companies are focusing on premiumization to drive growth.

2. Exim Policy Analysis for Export-Oriented Industries –

The export-oriented industries, including FMCG, have seen a significant impact due
to the changes in the export-import policy. Merico ltd. has been working to adapt to
these changes and capitalize on new opportunities.

47
Increased Exports: The new Exim policy is expected to increase exports for Merico
ltd. company FMCG business.
Reduced Imports: The import restrictions are expected to reduce imports for the
company's FMCG business.
Competitive Advantage: The export incentives are expected to provide a competitive
advantage to Merico Company FMCG business.

Effect of Import Regulations on Industry Costs –

The import regulations have affected the industry costs, particularly for FMCG
Increased Costs: Higher import duties will increase costs for Merico ltd. FMCG
business.

[Link] Profit Margins: The company may need to absorb some of the

increased costs or pass them on to consumers, potentially affecting profit

margins.

Competitive Disadvantage: The import duty hike may put Merico Enterprises at a
competitive disadvantage compared to other companies with lower import costs.

[Link] Strategic Alliances in the Last 5 Years – Notable Strategic Alliances in the
FMCG Sector (2016-2021)

Unilever and Alibaba (2019):

Unilever formed a strategic partnership with Alibaba to leverage the e-commerce

platform's capabilities.

PepsiCo and Beyond Meat (2021):

PepsiCo partnered with Beyond Meat to develop and distribute new snacks and
beverages made from plant-based proteins.

Nestlé and Starbucks (2018):

Nestlé entered into a global alliance with Starbucks to market and distribute
Starbucks’ products globally.

5. Mergers & Acquisitions (M&A) Trends -

Consolidation for Market Share:
Many FMCG companies merge or acquire to consolidate their positions in the market.
This helps them gain substantial market share and reduce competition.

Diversification of Product Portfolio:

FMCG companies often look to diversify their offerings through acquisitions. This

48
may include entering new product categories (e.g., plant-based foods, health
supplements, etc.) to meet changing consumer preference

[Link] Advancements & Digital Transformation -Technological

Advancements in the FMCG Industry
-E-Commerce Integration

-Data Analytics and Consumer Insights

-Supply Chain Optimization

-Automation and Robotics

7. Labour Unrest & Its Impact

Wages and Benefits: Employees may demand higher wages or better benefits,
especially during times of inflation or increased cost of living.
Working Conditions: Unsafe or unhealthy working environments can lead to
dissatisfaction and protests.

Job Security: In times of restructuring, workers may fear layoffs, prompting unrest

Management Practices: Disputes over management practices or lack of

communication can also lead to labor unrest.

Increased Costs:
Companies may incur higher operational costs due to temporary labor replacements,
negotiating new contracts.

Reputational Damage:
Labor disputes can attract media attention and damage a company’s reputation.
Consumers increasingly favor brands associated with fair labor practices and
corporate social responsibility.

Employee Morale:
Ongoing unrest can negatively affect overall employee morale, leading to decreased
productivity and potentially increasing turnover rates.

Regulatory Scrutiny:
Labor unrest may draw the attention of regulators and labor unions, which could lead
to increased scrutiny and potential legal challenges based on labor laws and
regulations.

Supply Chain Issues:

If unrest affects suppliers or distribution networks, it can lead to further delays and
compliations in getting products to retailers.

[Link] of First-Generation Entrepreneurs –

49
Vision and Innovation:
First-generation entrepreneurs often bring innovative ideas and fresh perspectives to
the market.
Risk Taking:
These entrepreneurs typically exhibit a high tolerance for risk. They invest their own
resources and time to establish their ventures, often in competitive and challenging
sectors like FMCG.
Brand Building
They play a crucial role in building their brands from the ground up.

[Link] Wars & Rivalries –

Key Aspects of Corporate Wars & Rivalries in FMCG

Brand Competition:
Marico competes with several well-established brands in various categories. For
instance, in the hair care segment, products like Parachute face competition from
brands like Hindustan Unilever’s Dove and Godrej’s Expert.

Market Share Battlegrounds:

Companies in the FMCG sector often focus on gaining market share through
competitive pricing strategies, promotional offers, and new product launches.

[Link] Incentives & Sector-Specific Reforms –

Make in India Initiative:

Launched in 2014, this initiative aims to encourage companies to manufacture in

India. It has led to various policies promoting local production, which can reduce
costs and improve supply chain efficiencies for FMCG companies, including Marico.

Production Linked Incentive (PLI) Scheme:

The PLI scheme offers incentives for companies to enhance their production
capabilities in specific sectors, including food processing and electronics.

Goods and Services Tax (GST):

The introduction of GST has streamlined taxation across the country, making it easier
for FMCG companies to manage operations and logistics.

50
 11. Shifts in Foreign Direct Investment (FDI) –

Growing Attractiveness of the Indian FMCG Market:

Market Potential: The Indian FMCG sector is one of the largest and fastest-growing
markets globally. Rising disposable incomes, urbanization, and changing consumer
preferences have attracted foreign investors looking to tap into this growth.

Increased Consumption: As middle-class consumption rises, foreign investors see

opportunities in segments like personal care, food and beverages, and health products.

12. Regulatory & Compliance Changes -

The FMCG (Fast-Moving Consumer Goods) industry, including companies like Marico
Limited, is subject to various regulatory and compliance changes that can significantly
influence operations, marketing strategies, and overall business practices.

Food Safety and Standards Regulation

Food Safety and Standards Authority of India (FSSAI): The FSSAI regulates food safety
in India, and any changes in its guidelines directly affect FMCG companies that
manufacture food products.

[Link] from Global Economic Factors -

The global economic factors have had a significant impact on the FMCG industry,
particularly in the wake of the pandemic.

Diversification Efforts: Merico company has been diversifying its business to reduce
dependence on specific markets or sectors.

Cost Optimization: The company has been focusing on cost optimization to improve its
competitiveness and profitability.

Investment in New Technologies: Merico company has been investing in new

technologies to improve its operational efficiency and stay ahead of the competition.

51
Refference Link:

CHAPTER NO.1

FMCG Industry official websites –

[Link]
[Link]
[Link]
%20technological%20development%20makes%20the,in%20the%20supply
%20chain%20process.
[Link]
[Link]
q=market+positioning+of+followers+in+fmcg+industry &rlz

CHAPTER NO. 2

[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]

CHAPTER NO 3

[Link]
[Link]
[Link]
chain-analysis?srsltid=AfmBOoqIwLLSVotQz2tTr40-
Tr53kDUc4NHIc2beGAnpr6gcS9bXmMKz
[Link]
CHAPTER NO. 4

[Link]
[Link]
MARICO-2022-23-Annual-Report-Analysis/4929
[Link]

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CHAPTER NO. 5

[Link]
into-a-consumer-digital-company-focusing-on-digital-first-brands-quick-
commerce-and-ai-in-product-development/[Link]
[Link]
[Link]
achieve-1-900-crore-arr-fast-moving-goods-company-saugata-gupta-1173

Research Papers –

Marico Limited - [Link]

FMCG Industry - [Link]

Book – Harsh Realities, The Making of Marico

53