Marico - Harnessing Digital · … with Sustainable Profitable Growth … Net Revenue Rs bn 13% 19% FY12 FY17 FY12 End FY17 End 90.5 338.3 37.01 59.36 FY12 FY17 EBIDTA % Market Cap

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Marico - Harnessing Digital

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Marico : An Indian FMCG Company, dominant MS, retail presence . . .

Hair Care

Health Care

Male Grooming

Reaching 50% of Retail Universe

… with Sustainable Profitable Growth …

Net Revenue

Rs bn

13%

19%

FY12 FY17 FY12 End FY17 End

90.5

338.3

37.01

59.36

FY12 FY17

EBIDTA % Market Cap – Rs bn

5 – year CAGR : 10% Topline, 18% bottomline

$ 1.5 b $ 5.2 b $ 0.57 b $ 0.91 b

* $1 = Rs 65

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… and aspiration to be come an Emerging Market MNC

+ India

… In 5 market units of Emerging economies of Asia & Africa

…with leadership in two categories of Natural Nourishment & Male Grooming…

“Digital, IT & Analytics” was one of the 5 transformation areas identified

ANALYTICS

AUTOMATION

INNOVATE

ENGAGE

REACH

SELL

LISTEN

INTEGRATED CONSUMER

EXPERIENCE

SOURCE: McKinsey analysis, press searches

~550 mn internet users by 2018

28% per year growth in time spent on digital

media

77% consumers influenced by online opinions

India has the 3rd largest

Internet population in the world

Ad spend on digital increased by

27% in 2016 (14% of total)

58K new user on

Social media daily

Digital is already emerging as a medium of importance in India

28% per year growth in time spent on digital

media

77% consumers influenced by online opinions

India has the 3rd largest

Internet population in the world

Ad spend on digital increased by

27% in 2016 (14% of total)

58K new user on

Social media daily

Digital is already emerging as a medium of importance in India

ANALYTICS

AUTOMATION

INNOVATE

ENGAGE

REACH

SELL

LISTEN

Consumer companies are using digital technology across the value chain to deliver an integrated consumer experience

INTEGRATED CONSUMER

EXPERIENCE

1. End Consumers

2. Customers / Channel Partners

3. Innovate Business Models

4. Digitise Operations

1. Consumer engagement: Leveraged at different levels

AS A MEDIA PLATFORM USE MOBILE AS A MEANS

TO REACH TARGETTED AUDIENCE

REINFORCED CATEGORY LEADERSHIP THROUGH CUSTOM ENGAGEMENT

PLATFORMS

1 2 3

2. Sell : Opportunity in Trade Channel

Share of Sales through diff Channels Typical Channel Flow

General Trade, 83%

Modern Trade, 10%

Others, 7% MARICO

RETAILER RETAILER

SUPER DISTRIBUTOR

MODERN TRADE

DISTRIBUTOR

CONSUMER

STOCKIST

Sell : Digital in GTM & Channel Interactions

DISTRIBUTORS ON A COMMON PLATFORM

HEAVY USE OF DATA, RENDERED FOR SALES

PERFORMANCE MGT ON MOBILE

PREDICTIVE ANALYTICS – Eg ASSORTMENT MIX

LEVERAGE E-COMMERCE – RIGHT CATEGORY /CHANNEL

APPROACH

1 2 3 4

3. Innovate : Online Brands and Business

Key Differences : • Online Brand Building

• Online Sales

• Entered Salons thru offline

• Quick Prototyping & Scaleup

BEARDO : Online Male Grooming Brand: Strategic Inorganic Investment

• Leading the trend of facial hair

• Entreprenuerial Team

Innovate : Online Brands and Business Models

Parachute Gold International Range

Parachute Naturalz Virgin Coconut Oil

Digital Only Brands Leveraging Partnerships

4. Digitise Operations : Deciding through Analytics

DESCRIPTIVE ANALYTICS PREDICTIVE ANALYTICS

Visual Dashboards Enabled for Finance, S & M, Supply Chain

Progress as per plan. Benefits Realisation underway

Commodity

Forecasting

Digitise Operations : Automation across the Value chain

New Planning

System

SUPPLY CHAIN FINANCE HR PROCESSES

• Higher Availability & improved savings

• Reduced Risk & improved efficiency

• Enable Connect and Collaboration

Farmer Connect

Digital – An Opportunity or a Risk ?

Thank you

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Marico Careers

@MukeshKrip

www.marico.com

Marico Ltd.

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