Marico Industries has posted a 5% drop in its net profits to Rs 357 m on a turnover of Rs 6,483 m for the FY2000 over the previous period. The intense competition in the domestic branded oil market, had resulted in increase in company's operational expenditure directly impacting its bottomline.
The company has significantly stepped up advertisement and sales promotion expenditure for the new products launched in the current year as well as the existing product range. This has resulted into decline in its operating profit margins to 8.1% in FY2000 (9.3% in FY1999). Also as a result of steep decline in prices of most edible oils, Marico had to reduce retail prices of refined edible oils negatively impacting company's
The company's export sales grew by 23% over the previous year.In order to optimally tap the potential offered by Bangladesh, the company set up a wholly owned subsidiary in Bangladesh which commenced local operations during the year.
Marico's flagship brand Parachute showed a healthy volume and value growth and maintained its market share in the difficult market conditions. The brand has faced stiff competition from HLL's Nihar and Dabur's Vatika Hair Oil.
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