Among Indian household names, Saffola is universal. When Indians began to prefer buying oil from a branded seller rather than a street vendor, this particular brand began to make waves in Indian kitchens. The company’s decision to promote the brand through television commercials sped up its rise to fame. The iconic Saffola commercials have been a part of almost every Indian child’s television viewing experience. The company released an ad campaign centering on the heart to break into the Indian market. The Saffola commercial featured frantic individuals, heart rate monitors, and ambulances flashing their lights and sirens. Branded as “Life Insurance,” the oil was marketed as a safeguard against cardiovascular disease.
Today, many consider Harsh Mariwala to be one of India’s foremost business gurus. Marico is an FMCG firm that Mariwala founded and chairs. Marico is responsible for creating well-known brands like Parachute, Saffola, Revive, and Mediker. Mariwala few years back posted on his Instagram, “For some reason, as we grow older, we start giving failures a negative connotation. How often do children stumble before they stand? How often do they fall before they walk? I can’t even count how many times I’ve failed at different things in my life. In fact, most of the successes have been built through these failures! As an entrepreneur, if something hasn’t worked out, don’t worry. Just keep at it!” Saffola surpassed its two formidable competitors, Hindustan Unilever and ITC, thanks to Mariwala’s tireless efforts and innovative marketing techniques.
In the 1960s, medical research identified safflower oil as a beneficial ingredient for heart health due to its higher concentration of something called polyunsaturated fatty acid. However, at that time, only crude safflower oil was commercially available, and it had an extremely bitter taste. As a result, the Mariwala Family received monthly postcards from heart patients requesting a few liters of this oil. Statistical estimates from public health indicate that India continues to bear approximately 60% of the global burden of heart disease. Heart disease is the leading cause of mortality among Indians and a silent epidemic.
This is when Saffola, a product of the Bombay Oil Company, was first introduced to the public in 1965 by the Mariwala family. Developing a marketing plan to get the product into the hands of consumers became the next pressing issue. The Saffola team proceeded methodically to launch heart health campaigns in collaboration with prestigious medical institutions such as the Escorts Health Institute and Bombay Hospital, among others. They also organized multiple conferences within the cardiology community to increase product awareness. From the consumer’s point of view, Saffola organized free cholesterol screenings and an awareness campaign to let people know that the brand stands for heart health. By the 1990s, these initiatives had grown to the point where they were reaching 85 lakh people across 9 cities. The business went so far as to launch a “dial a dietician” program, wherein customers could ask nutritionists for guidance on their diets and ways of living from anywhere in the nation. By going above and above to improve patients’ lives without directly marketing their product, Saffola was able to corner the market on patients’ needs without ever having to lift a finger.
Saffola Product Range
Tasting Failure
Saffola had hit the mark for Mariwala, and he was now enjoying a wave of success. He realized that appealing to people’s sense of taste and wellness was the best approach to getting into their homes. With this in mind, the company re-entered the fast-moving consumer goods (FMCG) sector with a rebranded line of backed snacks. The main objective was to attract customers in this area since the majority of options were unhealthy and fried.
We have Saffola, which is good for the heart, Mariwala said in a media encounter four years ago. Because of this, we considered introducing a baked snack under the Saffola name.
Prototypes depend on good consumer feedback as they are not typically supported by advertising efforts. The new product failed miserably in the marketplace, even though the brand had a reputation among “health-food” consumers. After failing to meet consumers’ expectations, the product was subsequently pulled from sale.
Dusting Off Failure With Success
Following the snack product’s failure, the Marico team got down to the business of figuring out what went wrong and how to fix it. Following much deliberation, the group settled on introducing a new product to the market, but this time around, they would put more effort into studying and testing. This is the story of how Saffola Oats came to be.
Saffola Masala Oats | Mazedaar Khaao Jee Bhar Ke
As a novel product, saffola oats were delicious for consumers. After extensive research into regional preferences, Marico developed a variety of masala oats. In this product category, Marico is now at the top. Marico has introduced a plethora of products—honey, peanut butter, soy chunks, instant noodles, etc.—with the same zeal over the years. Even though it failed miserably in its snack food inception, the Saffola Oats brand went on to become an enormous hit.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved byMarico.
The consumer goods market is a group of stocks and companies that deal with goods purchased by individuals and households rather than by businesses and industries. Food manufacturing, baked goods, garments, drinks, vehicles, and electronics are also part of this industry.
Marico Limited is a leading consumer goods company in India, offering a wide range of food, beauty, and wellness products and services. Marico has offices in over 25 countries across Asia and Africa, with its headquarters in Mumbai, Maharashtra, India.
As of January 2021, Marico was adopting a digital-first approach for premium foods.
Marico, a major Consumer goods business, is aiming for a bigger share of the food market. Marico wants to increase revenue from its food sector to INR 500 crore in FY22, up from less than INR 200 crore the previous fiscal. Sanjay Mishra, COO of Marico, spoke about the company’s renewed emphasis on the men’s grooming market, as well as strengthening the company’s premium product range and introducing “mass products with differentiation.”
“The big picture is that we want to be present in the foods segment, in the premium as well as mass categories. For the premium segment, we are going to adopt a digital-first approach. This calls for doing multiple things including creating new categories and tapping categories that are huge in the digital space. We started by prioritizing Saffola Fittify and Coco Soul as digital-first brands to see the response we got. Over time, we have learnt that there is a demand for these categories, but at this time, the market size is very small in the country. Hence, we are focusing on creating categories digitally,” said Sanjay Mishra, COO of Marico.
About Marico and How it Works?
Marico Limited is a leading consumer goods company in India, specializing in food, beauty, and wellness. Marico has a presence in over 25 countries across Asia and Africa, with its headquarters in Mumbai. It nurtures leading brands in hair care, skin care, edible oils, nutritious foods, hygiene, male grooming, and fabric care, among other categories. Marico’s goods are a part of millions of people’s everyday lives all over the world.
Parachute, Parachute Advansed Livon, Set Wet, Mediker, Saffola, Nihar Naturals, and Revive are some of the famous Indian household brands. Parachute, HairCode, Ingwe, X-Men, Caivil, Isoplus, Code 10, Hercules, Black Chic, and Thuan Phat are among the foreign brands that have been localized to meet the fashion needs of international customers.
Marico – Vision and Mission
Every member of the Marico family has a vision of long-term growth and prosperity while also attempting to have a positive impact on the entire business ecosystem. They collaborate to improve the lives of all of their stakeholders, including consumers, investors, members, and society at large.
The corporation has always taken steps to minimize negative environmental impacts while focusing on the common benefit of the people. It inspires people to contribute to society in every way they can. Marico claims that businesses and social organizations can improve their economic and social values through creativity and innovation. Instead, it is one of the company’s core principles.
Marico – Founder and History
Harsh Mariwala entered his family’s company, Bombay Oil Industries, in 1971, and by 1974, he had imagined an FMGC market for coconut and refined edible oils in smaller consumer packs, and had established a national distribution network for Parachute. And it was then that the first blue bottle of parachute oil appeared in Harsh’s invention.
Harsh Mariwala, Founder of Marico
Marico was born on April 2nd, 1990. Marico also released another haircare product, Hair & Care, a non-sticky hair oil, in the same year. Sweekar sunflower oil has also become a household name.
In 1992, Marico relocated its headquarters from Masjid Bunda Bazar to upscale Bandra. The business transitioned from being an exporter to an international marketer in 1992, when it opened its first overseas office in Dubai.
Marico – Name, Logo and Tagline
Marico’s tagline says, “Marico – make a difference”. The firm has always taken steps to minimize negative environmental impacts while focusing on the common benefit of the people.
Company Logo of Marico
Marico – Products
Hair Oil
Nihar Naturals Sarson Kesh Tel
Nihar Naturals Shanti Amla Badam Hair Oil
Parachute Advansed Deep Conditioning Hot Oil
Parachute Advansed Aloe Vera Enriched Coconut Hair Oil
Parachute Advansed Coconut Hair Oil
Parachute Advansed Jasmine Hair Oil
Hair & Care Fruit Oils
Nihar Naturals Coconut Hair Oil
Coconut Oil
Parachute Coconut Oil
Nihar Naturals Coconut Oil
Nihar Naturals Uttam Coconut Oil
Hair Serum
Livon Silky Potion Hair Serum
Hair & Care Silk n Shine Hair Serum
Anti-Hairfall
Livon Hair Gain Tonic
Parachute Advansed Ayurvedic Hair Oil
Parachute Advansed Ayurvedic Gold Hair Oil
Parachute Advansed Scalp Therapie Hair Oil
Male Grooming and Styling
Parachute Advansed Men’s Hair Cream Range
Set Wet Beard Styling Gel
Set Wet Deodorants
Set Wet Styling Gel
Wellness
Saffola Oils
Saffola Aura – Olive & Flaxseed Oil
Saffola Masala Oats
Saffola Multigrain Flakes
Skincare
Parachute Advansed Body Lotion
Marico – Business Model
The Marico business model is centered on focused growth across all of its brands/and territories, which is powered by constantly enhancing customer value propositions, market expansion, and expanding its retail presence. The model ensures Marico’s presence in niche / ethnic Indian product or service categories where traditional MNCs are weak.
Marico is a well-managed company that has created a stimulating work environment that empowers employees, facilitates teamwork, and encourages innovative ideas. Marico has risen to become one of the few profitable Indian FMCG companies over the years as a result of this.
Marico – Revenue and Growth
Marico Ltd posted a 13 percent increase in profit in the December quarter compared to the same period the previous year, despite rising raw material prices.
The company’s earnings beat analysts’ expectations, owing to strong growth across most of its portfolio. For the three months ended December 31, the manufacturer of Parachute coconut oil and Saffola edible oil posted a net profit of INR 307 crore, up from INR 272 crore the previous year.
In response to increasing prices, the company implemented selective price hikes in its main Parachute brand during the quarter. In India, Marico posted strong demand across 95 percent of its portfolio, suggesting that consumer sentiment is improving.
“In the India business, the company witnessed robust demand trends across more than 95% of its portfolio amidst steadily improving consumer confidence and a declining covid-19 graph. Traditional trade led the growth as the company took concerted efforts to drive excellence in execution. The company also continued to operate at reduced distributor inventory levels. Among the alternate channels, e-commerce witnessed augmented growth and modern trade also recovered sequentially to end flattish on a year-on-year basis,” the company said in a filing to the exchanges.
Marico – Key Financial Metrics
Financial Metric
2019-20
2018-19
Total Income
3504.00
3489.00
PAT Margin
-7.86
36.88
Equity Share Capital
93.03
93.03
Asset Turnover Ratio
5.61
7.14
Marico – Investments
Date
Organization Name
Round
Amount
Apr 18, 2018
Revofit
Corporate Round
–
May 18, 2017
Beardo.in
Funding Round
₹500M
Marico – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
Beardo.in
Beard is an official brand manufacturer of natural ordinary oils or incompatible products to bearded man.
Marico faced an extreme challenge from Unilever at a critical juncture in its growth path. Back then, it was no secret that Parachute, Marico’s coconut hair oil brand, was the single largest contributor to the company’s portfolio. With the aim of wresting the market away from Parachute, Hindustan Unilever launched and began vigorously advertising their own brand Nihar.
HU’s aggressiveness was evident in its promotional campaign, which outspent Marico at every turn and drowned Marico out in the media with its deafening voice. Then came some alarming news from the field, with Marico salespeople reporting “green walls in retail stores.” Nihar was a green brand, while Parachute was a blue one. For Mariconians, visions of green walls became nightmares.
Explaining Marico’s strategy, Sameer Satpathy, Head of Marketing, said, “Our strategy has always been to focus strongly on brands; investments in brands in terms of what is correct for the brands, which builds long term preference for the brand. So, we fundamentally keep doing that and I believe that it is more important not only during times of slowdown, but also when there is a boom.”
Marico – Future Plans
Marico’s most aggressive strategy is in the food industry. It recently introduced honey, which it says is one of the purest in the world, as part of the Saffola brand. With Covid-19 still raging, Gupta says that people’s eating habits have been reorganized into three categories: health and hygiene, nutritional immunity, and ready-to-cook foods or between-meal snacks.
Marico does not yet have critical mass in health and hygiene, and has made its foray into the immunity room with honey.
Fortunately, 80 to 90 per cent of our portfolio consists of items of daily consumption where we can grab market share. And there is also a huge opportunity to quickly get scale in others so that they become a significant part of our portfolio,” says Gupta of the immunity-giving foods the company plans to launch.
Marico – FAQS
What does Marico do?
Marico Limited is a leading consumer goods company in India, offering a wide range of food, beauty, and wellness products and services.
Who founded Marico?
Harsh Mariwala is the founder of Marico.
Is Parachute a product of Marico?
Yes, Parachute oil is Marico’s product.
What companies do Marico compete with?
Top competitors of Marico are Hindustan Unilever, Procter & Gamble, Dabur, Advantice Health, Emami, Gillette India, Bajaj Consumer and Colgate.
Sarika Anand
