Marico Industries has announced post tax profit growth of 39% for H1 2001, from US$3.85m to US$5.34m. Over the last decade, Marico has annually experienced compound growth of 28% on profits, and 22% on sales.
A 9% growth in volume last year cancelled out the deflation in selling prices caused by a general recession in the vegetable oil market. Sales, meanwhile, grew marginally by 1%, to US$66.9m. With the phenomenal drop in the cost of raw materials, from US$41.6m to US$32.8m, and lower income tax, profits after tax rose 39% to US$5.34m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Focus on building brands
Marico increased spending on advertising and sales promotion by 51%, focusing on building brand names for new products such as Saffola Kardi-Corn Blend and Parachute Dandruff Solution.
Increased market shares
These brands, together with six others, Sweekar, Marico’s Hair & Care, Revive, Sil, Oil of Malabar and Mediker, were purchased for Rs 30 crore from group company Bombay Oil, which previously leased the brands to Marico for royalty fees.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe deals have provided a sharp increase in terms of presence on the domestic market. Marico now controls 53.7% of the coconut oil market, and 8.1% of value added coconut oils. It also provides the only anti-lice shampoo and owns 12.7% of the jam market. There are also plans to build a wholly owned subsidiary in Sri Lanka to supplement its Bangladesh operations.
By Navroz Havewala
