Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
P&G-Marico: 'leveraging competencies' - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Oct 11, 1999

    P&G-Marico: 'leveraging competencies'

    Procter & Gamble Home Products, a 100% subsidiary of US-based Procter & Gamble, has assigned the distribution role for Camay range of soaps and Ariel detergent bar to Marico Industries. P&G will however continue to market these products.

    P&G, US operates three companies in India - P&G Health & Hygiene (formerly P&G India), P&G Home Products (a 100% subsidiary), and P&G Distribution. The distribution network of the company is largely urban with a combined reach of 0.5 m outlets. P&G Health & Hygiene is a listed company whose product portfolio includes Vicks range of products (lozenges, balm), and feminine hygiene products (Whisper sanitary napkins). P&G Home Products has hair care (Pantene, Head & Shoulders shampoos), detergents (Ariel), and baby care (Pampers).

    Marico Industries is market leader in branded coconut oil segment in India. Its brand Parachute commands over 50% market of this segment. Other prominent brands in its portfolio include edible oil (Saffola, Sweekar), SIL (jams and other edible foods), Mediker (anti-lice shampoo), Revive (instant starch), and Hair & Care (a non-greasy hair oil). The company's strength is its 600,000 strong retail reach.

    The move is in line with the decision of P&G group in India to focus on hair care, pharma, paper products and laundry products. The company is not keen to be actively involved in soaps, which it believes is not its core competency. Also, it does not have the retail reach like Marico, to compete with market leader Hindustan Lever Limited. By this tie-up P&G gains by getting access to 600,000 retail outlets for its products. It saves on having to invest in running a huge distribution network.

    Soap distribution will be a useful value addition to Marico, as soaps are a significant part of the FMCG segment. It will help it leverage distribution and take the fight to their biggest rival Hindustan Lever. In recent times, HLL has been aggressively trying to eat into Marico's branded coconut oil market. So in effect, Marico will gain experience with this latest addition on its distribution network, which in the long run might help it save its market leadership status in the coconut oil segment. It will also generate additional revenues for the company.

    With HLL gunning for the top position in the oil market, Marico's distribution channels will come under increasing pressure in the coming days, having to fight HLL on both fronts i.e., soaps and detergents, and coconut oil.



    Equitymaster requests your view! Post a comment on "P&G-Marico: 'leveraging competencies'". Click here!


    More Views on News

    Marico: Earnings Hit by Lower Volumes and Firming Input Prices (Quarterly Results Update - Detailed)

    Aug 9, 2017

    While GST implementation brought down volumes and profitability in the short run, Marico remains optimistic in the long run.

    Marico: Margin Expansion Drives Profit Growth (Quarterly Results Update - Detailed)

    Nov 28, 2016

    Marico has reported a flat topline while the bottomline has grown by 18% YoY during the quarter.

    Marico: Profiting From Lower Input Cost Scenario (Quarterly Results Update - Detailed)

    May 6, 2016

    Marico announced results for the quarter and year ended March 2016. While revenues rose by 7% YoY during the year, net profits increased by 26% YoY.

    Marico: Volume Growth Makes a Comeback (Quarterly Results Update - Detailed)

    Mar 2, 2016

    Marico announced results for the quarter ended December 2015. While revenues rose by 7% YoY, net profits increased by 24% YoY.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 16, 2017 (Close)


    • Track your investment in MARICO LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks


    Detailed Quarterly Results With Charts