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<ul><li>This initiative enables the consumer to order essential food items under the <keyword id="6361485" type="ORGANIZATION" weightage="20" keywordseo="marico">Marico</keyword> portfolio - Saffola Oils, Saffola Plain Oats, Saffola Masala Oats and Coco Soul Virgin coconut oil, from the safety of their homes. </li><li>This service is available on <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> in Delhi NCR and Bangalore. It will be activated in other cities such as Mumbai, Kolkata, Chandigarh and Ahmedabad starting next week. </li><li>The <keyword id="6358977" type="UNKNOWN" weightage="20" keywordseo="swiggy">Swiggy</keyword> stores have started the delivery in Gurgaon and the service will be extended to the rest of Delhi NCR, Bangalore and Mumbai this weekend.</li></ul>Marico Limited has partnered with Swiggy and Zomato to introduce <keyword id="9012277" type="UNKNOWN" weightage="20" keywordseo="saffola-store">Saffola Store</keyword> on the country’s foremost foodtech platforms. This initiative enables the consumer to order essential food items under the Marico portfolio - Saffola Oils, Saffola Plain Oats, Saffola Masala Oats and Coco Soul Virgin coconut oil, from the safety of their homes. This service is available on Zomato in Delhi NCR and Bangalore. It will be activated in other cities such as Mumbai, Kolkata, Chandigarh and Ahmedabad starting next week. The Swiggy stores have started the delivery in Gurgaon and the service will be extended to the rest of Delhi NCR, Bangalore and Mumbai this weekend. With the rapidly escalating spread of COVID-19, availability of essentials is a critical need of the hour and so is consumer safety. Through this collaboration, Marico Limited aims to supply necessary food items to consumers without having them to step out of their homes, in these times of turmoil. The delivery services are designed in adherence to strict hygiene and safety guidelines. Commenting on this partnership, Sanjay Mishra, Chief Operating Officer- India Sales &amp; Bangladesh Business, Marico Limited said, “As India grapples with the unprecedented global pandemic, it is incumbent on every one of us to come together and extend our support. As one of India’s leading consumer companies, we are working towards ensuring the availability and easy access of essential food items to consumers. In an effort towards this, we have partnered with Swiggy and Zomato to provide Saffola and Coco Soul products to individuals’ doorstep in a safe manner.” Vivek Sunder, Chief Operating Officer, Swiggy, said, “Swiggy is committed to serving the citizens of our country in every way possible especially during these difficult times. Through our partnership with Marico, Swiggy will leverage and engage its extensive delivery fleet to ensure that essential products such as cooking oil and oats reach consumers quickly and in a safe manner. We are sure that this association will deliver immense value to our customers especially in this time of need.” “As an essential service provider, it is important we find ways to utilise our expertise to fight against this pandemic. We are glad to partner with Marico and be able to deliver the necessary products to our users. We are starting this partnership in Delhi NCR and Bangalore and will expand it to more cities by next week,” said Mohit Sardana, Chief Operating Officer-Food Delivery, Zomato.

You can now order essential food items from Marico on Swiggy and Zomato

<ul><li>When the government slashed import duties on palm, sunflower and soyabean oils earlier this month, it left out healthy edible oils such as olive and olive pomace oil.</li><li>These duties cuts have altered the price gap that exists between healthy and unhealthy oil options.</li><li>Healthy oil manufacturers like Modi Naturals and Marico are bearing the brunt of hefty import duties and passing it on to consumers.</li><li>Indians have already been downtrading from brands to unbranded or local items when it comes to packaged foods, now there will be a similar trend in <keyword id="57322" type="General" weightage="20" keywordseo="edible-oil" source="Orion">edible oil</keyword> too.</li></ul>Indian households have been reeling under the stress of hikes in <a href="https://www.businessinsider.in/india/news/after-fuel-government-moves-to-reduce-the-price-of-edible-oil-by-15/litre/articleshow/92793370.cms">edible </a>oil for months – a key element that determines their thalinomics. This heavily imported food product has been hit by supply chain issues, export bans and more but just as a few weeks back, they had started to <a href="https://www.businessinsider.in/india/news/after-fuel-government-moves-to-reduce-the-price-of-edible-oil-by-15/litre/articleshow/92793370.cms">cool </a>off a bit, thanks to global price <a href="https://www.businessinsider.in/india/news/after-fuel-government-moves-to-reduce-the-price-of-edible-oil-by-15/litre/articleshow/92793370.cms">drop. </a> A few companies like Adani Wilmar had reduced the sticker price too. The centre too moved to make it affordable again by <a href="https://www.livemint.com/industry/agriculture/govt-slashes-effective-import-duty-on-crude-palm-oil-to-5-5-to-cool-edible-oil-prices-11644721728342.html">slashing </a>import duties and asked the manufacturers to <a href="https://www.deccanherald.com/business/business-news/centre-asks-edible-oil-industry-to-slash-prices-1125041.html">pass it on to consumers </a>by up to ₹10-12 per litre. These duty cuts will also offset the fall in rupee value that will affect the economics of imported products. India is highly dependent on oilseeds growers outside the country as it is the world's second-largest <a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/huge-edible-oil-imports-compromise-indias-interest-imperative-to-become-self-reliant/articleshow/92796952.cms?from=mdr#:~:text=India%20is%20the%20world's%20second,in%20continuous%20dependence%20on%20imports.">consumer </a>and number one <a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/huge-edible-oil-imports-compromise-indias-interest-imperative-to-become-self-reliant/articleshow/92796952.cms?from=mdr#:~:text=India%20is%20the%20world's%20second,in%20continuous%20dependence%20on%20imports.">importer </a>of vegetable oil. It meets 55-60% of its needs through imports. “Since the global edible oil prices have reduced by 25-30% and the Indian government has also reduced the import duty on edible oils, the rupee depreciation against dollar and its impact on local prices will be offset by that. Hence, we don't see the price hike in edible oils in India due to rising dollar against rupee,” Akshay Modi, MD of Modi Naturals’ told Business Insider India. According to recently released data by the Ministry of Statistics and Programme Implementation, edible oil <a href="https://mospi.gov.in/documents/213904/416359//CPI%20Press%20Release%20June%2020221657627219122.pdf/dd978e29-3d3b-c0a8-5a4f-8d41ee23027f">prices are over 9% higher than they were </a>last year. After vegetables and spices, oils and fats have seen the biggest increase in the inflation rate during the same period. Healthy vs unhealthy While these duty cuts helped, they have also altered the price gap that exists between healthy and unhealthy oil options. Duty cuts were taken by the government for palm, sunflower and soyabean, and the centre has left out olive and olive pomace oil, both of which are imported too. These two oils are considered the healthiest of the old due to their antioxidant properties. “When it comes to other healthy edible oils like rice bran and olive pomace oils, the duties are still disproportionately high at 38.5%, leaving consumers with no healthy options to choose from. We urge the government to reduce the duty on crude oils of these sources, make it a level playing field and give consumers healthy options to choose from,” Modi told Business Insider India. Manufacturer of Oleev oil Modi Naturals’ five-liter olive pomace currently costs ₹2199. Dhara’s <keyword id="58302" type="General" weightage="20" keywordseo="sunflower-oil" source="Orion">sunflower oil</keyword>, on the other hand, costs ₹943 for 5 liters. The price of olive oil is already high and disproportionate duties might make them costlier by comparison. As trends indicate, Indians have already been downtrading from brands to unbranded or local items when it comes to packaged foods. And, it has already affected FMCG major Marico. Its healthy cooking oil brand version <a href="https://www.businessinsider.in/india/news/oats-and-honey-are-some-of-the-health-foods-that-indians-are-buying-less-of/articleshow/92697833.cms">Saffola declined in double digits </a>in the quarter ending June 2022. “Saffola Oils declined in double digits, having to contend with high in-home consumption in the base quarter and significant downtrading visible from super premium to mass segment in edible oils,” the company said in a statement to the stock exchanges. Marico has a range of healthy cooking oil options under its brands named Weight Watchers, Total Pro Heart and more. It also has cans of rice bran oil with other vegetable oils, providing a multitude of options for consumers searching for healthy options.

Cooking oils are getting cheaper but healthier options are as pricier as they were

<keyword id="126855" type="PERSON" weightage="80" keywordseo="Harsh-Mariwala">Harsh Mariwala</keyword>, the 63-year old patriarch of <a href="http://www.businessinsider.in/searchresult.cms?query=marico">Marico Ltd</a>, is a man of many beliefs-the foremost being in the art of letting go and reinvention. 
 
He revolutionized the Indian <a href="http://www.businessinsider.in/searchresult.cms?query=fmcg">FMCG</a> sector with his consumer goods company <keyword id="6361485" type="CITY" weightage="80" keywordseo="Marico">Marico</keyword>, where he has been calling the shots since 1990. Earlier known as Bombay Oil Industries, the family-owned business came to be christened as Marico Ltd under Mariwala’s presence who knew he had to change with the times and carve a niche for himself. 
 
With newer strategies and innovations, he ensured Marico Ltd not only dominated the market but also inculcated ‘innovating’ as their inherent company culture. 
 Citing an example, he reminisces about how <keyword id="1376777" type="UNKNOWN" weightage="80" keywordseo="Parachute-oil">Parachute Oil</keyword> was initially sold in tin cans. The challenge at hand was to sell the oil in plastic as it was cheaper, but retailers were vehemently against the idea as it had been tested before and had failed mainly because it caused spillage. 
 
“We didn’t take no for an answer. We were at it until we proved that the product remained intact. It took us close to 10 years to convert the market from tin to plastic- and in the process our market share rose too.” 
 
That was however, not the end of the road for them. 
 
“Then came winters and we realized that we had to find an alternative because coconut oil freezes in winter. So, we again innovated and came up with an easy jar. To ward off copycats, we relied on technology and the result was thus- a pilfer-proof fliptop,” he says. 
 
But, reinventing also comes with the price of letting go, and Mariwala was quick to understand that. 
 
“The problem with family-owned businesses in India is they do not look at the bigger picture,” he states, adding that it’s only fair that they professionalize with time so that their growth is not restricted. 
 
Keeping in line with this view, Mariwala stepped down as the company’s Managing Director and handed over the reins to CEO Saugata Gupta in April last year. 
 
Though Marico is one of the rare family-owned businesses in India where professionals are well-entrenched, the veteran feels that such a scenario is inevitable, though not without its fair share of hiccups. 
 
“The challenges to this are many. You have to ensure a work culture that is encouraging and appreciating, but in return you also get the reward of employees who care about the organization as their own. The real task is however to sync the founder’s mentality with that of the employees. Every day is a work towards building the path towards a successor pipeline,” he admits. 
 
That’s not all; he also thinks it’s very important for businesses to get professional help. “As one’s business expands, it’s imperative that one recruits the right talent, what with the many disruptions happening worldwide. And, there’s no better way to do that than by seeking outside expert help. It’s time to destroy the traditional forms of doing business.” 
 
The fact that the customers have evolved and have become more demanding is more reason why businesses should ditch traditional methods, he believes. 
 
“Take the example of edible oils, for instance. It started with loose oils, then customers wanted filter, packed and refined oil and ultimately now blended and butter-substitute oils are the norm,” he adds, highlighting how sacrosanct it is for a business to keep innovating. 
 
When asked why is it that most Indian businesses fighting for recognition in the FMGC sector don’t rank very high on innovation, Mariwala feels that to some extent, India’s complex food laws are to be held accountable for that. 
 
“There’s a vast difference between how food laws are implemented and how they are regulated, in real life. It’s thus very important that food regulators work in tandem with food operators. What happened to <a href="http://www.businessinsider.in/searchresult.cms?query=maggi">Maggi</a> could happen to anyone. But, it could also have been easily avoided,” he feels. 
 
Ask him what should entrepreneurs do differently and Mariwala, who's also a part of the Young President Organisation(YPO) has a quick tip, “90% of running a successful business in identifying your right to win- something that your competition doesn’t have. It could be anything from a business model to a certain technology. Once you have that figured out, everything just falls in place, with a little bit of work,” he concludes. 
 
Image credit: Indiatimes

Exclusive: “What happened to Maggi could happen to
anyone” says Harsh Mariwala commenting on India’s complex food laws

<ul><li>Marico has appointed <keyword id="1328136" type="PERSON" weightage="20" keywordseo="Koshy-George">Koshy George</keyword> as its Chief Marketing Officer. </li><li>George was in-charge of global leadership for two of <keyword id="6365619" type="COMPANY" weightage="20" keywordseo="hindustan-unilever">Hindustan Unilever</keyword>'s iconic personal care brands - <keyword id="6616182" type="UNKNOWN" weightage="20" keywordseo="Lifebuoy">Lifebuoy</keyword> &amp; Pears. </li><li>Marico could now expect George to ramp up its marketing efforts to boost its exports. </li></ul>One of India’s leading consumer brand, Marico – home to legacy products like Parachute and Saffola – has just poached a global branding expert from rival Hindustan Unilever (HUL). The company has appointed Koshy George as its Chief Marketing Officer. George was in-charge of global branding for two of HUL’s iconic personal care brands - Lifebuoy &amp; Pears while also leading a global consumer platform for the skin cleansing category across key brands like Dove, Lux, Sunlight among others. So what will be George’s mandate at Marico? “He has a very exciting and challenging agenda in driving premiumisation of our portfolio over the next few years,” Saugata Gupta, Managing Director and Chief Executive Officer at Marico said. This could include both new products as well as rebranding initiatives to target upmarket customers who would pay more for a better brand and experience. With George’s experience in leading a brand to go global, it is expected that Marico will expect him to look at its global marketing portfolio too. Marico has made its mark in 25 countries across emerging markets of Asia and Africa, with marquee brands in the categories of hair care, skin care, edible oils, health foods, male grooming, and fabric care. Marico has been focussing on its foreign markets (Bangladesh, Vietnam, Middle East and North Africa and South Africa) also ramping up expansion into these markets. "The company is aiming for 8-10 percent volume growth over the medium term (3 to 5 years), coupled with healthy market share gains," Marico CFO Vivek Karve told <a href="https://www.moneycontrol.com/news/india/marico-aims-up-to-10-volume-growth-healthy-market-share-gains-in-5-years-2911571.html">Moneycontrol.</a> The company saw a 22% revenue from its international businesses as of March 2018. Its annual revenue for the year ended March 2018 stood at ₹6,417.7 crores. For George, the move means coming full circle to where he started out. He joined Marico as a management trainee and went on to be an Area Sales Manager before joining HUL where he rose the ranks in the 14 years that followed. He was the Global Marketing Director - skin cleansing, in his last role at HUL. See Also: <a href="https://www.businessinsider.in/hindustan-unilever-and-glaxosmithklines-domestic-consumer-unit-are-merging-in-what-is-said-to-be-indias-largest-consumer-goods-deal-ever/articleshow/66933852.cms">Hindustan Unilever and GlaxoSmithKline’s domestic consumer unit are merging in what is said to be India’s largest consumer goods deal ever</a> <a href="https://www.businessinsider.in/slower-growth-at-hindustan-unilever-hits-8-figure-salaries-of-top-executives/articleshow/59073411.cms">Slower growth at Hindustan Unilever hits 8-figure salaries of top executives</a>

Marico seeks a facelift – poaches a brand expert from HUL

<ul><li>Marico’s India Business delivers a volume growth of 21%.</li><li>More than 90% of the company’s domestic portfolio gains market share. </li></ul>In Q1FY22, Marico’s revenue from operations grew by 31% YoY to ₹2,525 crores (USD 346 million) with underlying volume growth of 21% in the domestic business and constant currency growth of 21% in the international business. In India, the FMCG giant witnessed positivity in the demand sentiment until late April, when stricter mobility restrictions were once again imposed in various states in response to the rising severity of the second COVID wave. Unlike the first wave, the pandemic affected deeper pockets of the country, but Marico’s business was not as disrupted as in the last year given that supply chains were able to weather localized and staggered lockdowns and retail stores operated for certain number of hours during the day. Growth in key portfolios also witnessed some impact due to relatively higher salience in South and West India, which saw heavier caseloads and extended lockdown restrictions. In addition, there was also a marginal correction (2-3% impact) of the historical revenue skew from Q1 towards the previous quarter (Q4FY21). Traditional trade continued to perform well with rural and urban growing in tandem. E-Commerce maintained its accelerated growth trajectory, while Modern Trade could only recover partially as lockdown-like curbs were back into effect in various states. CSD grew on a low base. The International business posted a strong broad-based recovery relative to the varying levels of impact in each of the markets in the base quarter. This was despite signs of moderation in demand witnessed due to the resurgence of COVID in Bangladesh and Vietnam towards the end of the quarter. Gross margin was down 759 bps YoY given the stark contrast in the cost of inputs consumed in the two quarters, as pricing interventions in the core portfolios could only partially alleviate the inflationary pressure. However, operating leverage benefits reduced the drop in EBITDA margin to 522 bps YoY. As a result, EBITDA was up 3% YoY and recurring PAT was up 8% YoY. Reported PAT was down 7%, due to exceptional gain in the base quarter. Other highlights relating to the quarter’s performance are as follows: <ul><li>∙ The core portfolios in the India business continued to log market share gains on a MAT basis, on the back of their market leadership position and strengthening equity.</li><li>∙ Traditional trade continued its healthy run with both urban and rural growing by 17% in volume terms. E-Commerce grew 61%, sustaining its strong momentum. Modern Trade and CSD grew 10% and 56%, respectively. ∙ Parachute Rigids grew 12% in volumes, posting growth in both core and non-core markets. The brand continued to gain volume market share of 80 bps (MAT Jun’21).</li><li>∙ Value Added Hair Oils grew 34% in volumes with each of the key brands clocking double-digit growth. The Company gained 70 bps volume market share to 37% (MAT Jun’21)</li><li>∙ The Saffola franchise, comprising Refined Edible Oils and Foods, delivered 24% volume growth and 60% growth in value terms. Saffola Edible Oils delivered low double-digit volume growth despite a strong base, on the back of investment in new markets and increasing household penetration. Saffola Foods grew by more than 100% in value terms, augmented by the new launches over the last 12 months. The base Oats franchise grew by 59% in value terms backed by increased penetration and market share gains. Saffola Honey continued to grow briskly on a sequential basis, and has garnered double-digit market share in key Modern Trade chains and consolidated 25%+ market share in E-Commerce. Saffola Oodles and Saffola Mealmaker Soya Chunks have been scaling up well.</li><li>∙ The Premium Personal Care (contributing less than 5% of revenues) recovered sharply on a low base but was still below pre-COVID levels, as discretionary consumption remained soft.</li><li>∙ In the International business, Bangladesh clocked 9% constant currency growth. South East Asia delivered 16% constant currency growth. MENA and South Africa recovered smarty on a low base.</li><li>∙ Advertising &amp; Sales Promotion grew by 27% YoY as the Company actively invested in its core franchises and recent Foods innovations, while maintaining a low-key in discretionary categories.</li></ul>

Marico's revenue from operations grew by 31% YoY to ₹2,525 crores in Q1FY22; advertising and sales promotion sees a growth of 27% YoY

Encouraged by volume growth, margin improvement and recovery in rural sales, India's top fast-moving consumer goods (FMCG) companies are now back to their normal growth cycle as they step up investments as well as spending on advertising and marketing. <keyword id="84065" type="General" weightage="20" keywordseo="fmcg-companies" source="Orion">FMCG companies</keyword> are chasing volume growth again after a gap of a few quarters, offering higher grammage and price cuts thanks to inflationary pressures softening on key raw materials for everything from soaps to food items. Hindustan Unilever (HUL), Dabur, Marico, Godrej Consumer Products, ITC, Tata Consumer Products and Nestle reported volume recovery in the March quarter and said they expect a gradual pickup in consumption in FY24. "The prospects of a sustained recovery have strengthened. After five quarters of volume decline, the sector has posted volume growth," Marico MD and CEO Saugata Gupta said in the company's earnings conference call. "Urban consumption has been steady while rural is showing some convincing signs of having bottomed out." Foods continue to drive growth for the sector, while the home and personal care segment also entered positive territory after an extended slowdown. Marico, which owns popular brands like Saffola, Parachute and Livon, reported an 18.7 per cent increase in its consolidated net profit to Rs 305 crore for the fourth quarter ended March 2023 while sales rose 3.65 per cent to Rs 2,240 crore, driven by single-digit volume growth and moderation in commodity prices. HUL said rural areas have shown improvement with higher value growth sequentially. While HUL's volumes continue to fall, the extent of decline has reduced versus last quarter. "The slowdown in the FMCG market is bottoming out. This improvement was led by volumes, which have turned flat in this quarter, versus a mid-single-digit decline in the December quarter," said HUL CFO Ritesh Tiwari in its earnings call. The makers of popular brands such as Rin, Lux, Surf Excel and Pond's said it expects the price-volume growth to rebalance further. "We expect volumes to recover gradually due to high levels of cumulative inflation and the fact that consumption habits typically recover with a lag," he said. For the March quarter, HUL reported an increase of 12.74 per cent in its consolidated net profit to Rs 2,601 crore. Net sales rose 10.83 per cent to Rs 14,926 crore. However, HUL warned the near-term operating environment is likely to remain volatile due to global slowdown risk and uncertainty related to weather phenomena like El Nino and heatwaves. Abneesh Roy, Nuvama Group Executive Director for Institutional Equities, said the outlook for the <keyword id="495979" type="General" weightage="20" keywordseo="fmcg-industry" source="Orion">FMCG industry</keyword> was "positive" with volume growth and improvement in margins for most companies in FY24. "As raw material prices are cooling off, companies shall start paring prices via grammage increase or gradual price reductions. Price growth shall ease while volume growth will improve," he said. Roy also cautioned about the impact of El Nino and the "aggression" from billionaire Mukesh Ambani-led Reliance Industries Ltd, a known disrupter, which aims to be a big player in the USD 110-billion FMCG segment. Meanwhile, Godrej Consumer reported an 11.47 per cent increase in its India revenue to Rs 1,822.92 crore in the March quarter. This was led by volume growth of 11 per cent. Its home care segment, which consists of household insecticides and air fresheners, grew 14 per cent and 17 per cent, respectively. "We expect to build on the current momentum and deliver volume-led growth along with upfront marketing investments and improvement in profitability," said its Managing Director and CEO Sudhir Sitapati. Britannia Executive Vice-Chairman and Managing Director Varun Berry also expressed optimism. "Volume growth will be certainly much better than this year," he said. On commodity prices, Berry said there is deflation in prices of palm oil, laminates and corrugated material for packing but flour and milk prices are soaring. "There are certain brands and certain packs where we have already initiated price reductions or promotions," he said. In the March quarter, Britannia reported a 47.53 per cent jump in consolidated net profit to Rs 557.60 crore. Its revenue from operations rose 10.93 per cent to Rs 3,892.02. Similarly, Dabur reported volume growth of 11 per cent during the March quarter and 14 per cent for FY23. Its quarterly net profit was Rs 292.76 crore and revenue from operations stood at Rs 2,677.8 crore. "Despite near-term concerns around inflationary pressures, we plan to accelerate the growth momentum by continuing to invest in brand building, innovation, and capabilities that will drive growth," said Dabur India CEO Mohit Malhotra. Other companies also recorded growth. ITC's revenue from the FMCG segment rose 19.34 per cent to Rs 4,951.17 crore from Rs 4,148.62 crore while EBITDA jumped 76 per cent. Nestle, the maker of Maggi, Kitkat and Nescafe, reported an increase of 24.69 per cent in its net profit to Rs 736.64 crore in the March quarter. Sales rose 20.43 per cent to Rs 4,808.40 crore. Tata Consumer reported a 21.12 per cent rise in its consolidated net profit to Rs 289.56 crore. Its revenue from operations was up 13.96 per cent at Rs 3,618.73 crore. Tata Consumer said it recorded growth in the India beverages business and food. It had a "strong margin growth and strong topline growth driven both by volume and price," the company said in its earnings call. "We have started seeing volume growth coming back. The impact of inflation and monetary tightening on economic growth and demand seems to be slowing down, but I would keep my fingers crossed and monitor it closely," said Tata Consumer MD and CEO Sunil D'Souza. "In the near term, we are seeing stability." SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/zomato-net-loss-narrows-to-188-crore-in-q4-revenue-rises-70-yoy/articleshow/100358894.cms">Zomato net loss narrows to ₹188 crore in Q4, revenue rises 70% YoY</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/mankind-pharma-pnb-among-stocks-to-become-largecap-from-midcap-mutibagger-rail-vikas-nigam-to-turn-midcap-from-smallcap/articleshow/100356527.cms">Mankind Pharma, PNB among stocks to become largecap from midcap; mutibagger Rail Vikas Nigam to turn midcap from smallcap</a>

FMCG makers expect sustained recovery in volume and margins with price reduction in FY24

<ul><li><keyword id="6359432" type="DOMAIN" weightage="20" keywordseo="britannia">Britannia</keyword>'s essentials products such as biscuits, cakes, rusk, croissants, milkshakes, wafers, ghee and dairy whitener will be sourced by <keyword id="3275685" type="PERSON" weightage="20" keywordseo="dunzo">Dunzo</keyword> from its distribution centers.</li><li>Earlier two FMCG makers - ITC Foods and Marico - had announced such partnerships to get their products delivered at consumer's doorsteps by using the service of app-based aggregators.</li></ul>FMCG major <keyword id="146218" type="COMPANY" weightage="20" keywordseo="Britannia-Industries">Britannia Industries</keyword> on Tuesday said it has partnered with Dunzo, an on-demand e-commerce platform, to deliver its range of products during the nationwide lockdown. Customers can get Britannia products at their doorsteps through the Dunzo app in less than an hour of ordering from the 'Britannia Essentials' store. The first store in Bengaluru will be operational from Tuesday onwards and would be extended to other cities such as Mumbai, Pune, Delhi, Gurgaon, Jaipur, Hyderabad and Chennai, a joint statement said. "During this unprecedented time, it is critical for us to maintain a continuous supply of our products which are daily staples in millions of Indian households. With a significant rise in demand for at-home delivery, we are happy to leverage Dunzo's innovative and most advanced technology platform, to enable seamless delivery of products every day," Britannia Industries Managing Director <keyword id="459296" type="PERSON" weightage="20" keywordseo="Varun-Berry">Varun Berry</keyword> said. Britannia's essentials products such as biscuits, cakes, rusk, croissants, milkshakes, wafers, ghee and dairy whitener will be sourced by Dunzo from its distribution centers. "Across the country, there is a demand for essentials and in these extraordinary times, companies need to rise to the occasion. We at Dunzo are committed to helping our cities fight the COVID-19 pandemic," Dunzo CEO and Co-Founder Kabeer Biswas said. Earlier two FMCG makers - ITC Foods and Marico - had announced such partnerships to get their products delivered at consumer's doorsteps by using the service of app-based aggregators. ITC Foods has announced partnership with Dominio's Pizaa and launched "Domino's Essentials" to deliver groceries and packaged foods to customers during the lockdown period. Marico has partnered online food ordering platform Swiggy and <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> to deliver essential food items to consumers. Under this partnership, Swiggy and Zomato would deliver essential food items under the Marico portfolio which includes Saffola Oils, Saffola Plain Oats, Saffola Masala Oats and Coco Soul Virgin coconut oil, from their homes. India is presently going through an unprecedented complete lockdown of three weeks, ending on April 14, to prevent the spread of <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">coronavirus</keyword>. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/zomato-and-swiggy-both-get-raise-funds-but-swiggy-leads-with-a-higher-valuation/articleshow/75008445.cms" data-type="tilCustomLink">Zomato and Swiggy both raise funds – but Swiggy leads with a higher valuation</a>

Britannia started home delivery of biscuits, cakes, rusk, croissants, milkshakes, wafers, ghee and dairy products

New Delhi, Apr 9 () FMCG major Marico said its January-March quarter EBITDA may see "modest decline" following disruptions on account of Covid-19 pandemic and associated lockdowns. During the lockdown period, there was a spike in the sales of its cooking oil brand Saffola as people were stocking household items, but overall, it had a "low single-digit volume decline" in the domestic business, Marico said in a regulatory filing. Though its India business had signs of "improvement across categories until early March", but it was offset by disruptions in the last 12 days in March, following lockdown in some states to contain the outbreak of Covid-19, Marico said. "Revenue decline (both in India and International business), coupled with an unfavourable mix in the India business, will translate into a modest decline in earnings before interest, tax, depreciation and amortisation (EBITDA) in this quarter vs the corresponding quarter last year," Marico said. According to the company, in such "unprecedented times" it has started an "aggressive cost management exercise" to mitigate the impact of reduced sales. The company aims to drive sustained profitable volume-led growth over the medium term, through strengthening the franchise network in core categories, it said. Marico would update the results for the quarter and financial year ended March 31, 2020, once it receives board approval. "Overall, the India business posted a low single-digit volume decline in the quarter, with very skewed high growth in the Saffola portfolio," Marico said adding overall secondary growth in the quarter was in low single digits. Moreover, during the quarter, traditional trade, which was already reeling under liquidity constraints, was further weakened. Presently, production is currently suspended at Marico's other manufacturing units and shall commence once government approvals are received. On distribution network, the company said it is "focusing on movement of essential food and grocery items to the consumers subject to necessary approvals from local government authorities and taking all possible efforts to ensure uninterrupted supplies of essential products to our customers across channels (General Trade, Modern Trade and ECommerce) within the existing constraints". Marico's international business was also impacted due to the pandemic of Covid-19. "With many of the territories experiencing partial or complete lockdown in March, the international business recorded a mid-single digit decline on a constant currency basis," it said. India is presently going through an unprecedented complete lockdown of three weeks, ending on April 14, to prevent the spread of coronavirus. KRH DRRDRR

COVID-19: Marico says Q4 EBITDA may see "modest decline"

<ul><li>Speaking at the Business Insider Global Trends Festival 2020, <keyword id="126855" type="PERSON" weightage="20" keywordseo="Harsh-Mariwala">Harsh Mariwala</keyword> said the emergence of digital marketing and <keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">e-commerce</keyword> has made it cheaper and easier for startups to make their mark in the segment. </li><li>Modern trade and e-commerce contribute to 22% of total sales of Marico (as of FY20). </li><li>Mariwala also spoke of brands like the one they have acquired Beardo or others like Mamaearth and Boat, who have made a mark for themselves in the consumer market. </li></ul>Harsh Mariwala, the man who has spearheaded India’s <keyword id="34523" type="CITY" weightage="20" keywordseo="fmcg">FMCG</keyword> (fast moving consumer goods) growth with his 30-year old company, observed how digital and e-commerce has removed the entry barriers into the sector. “In the earlier days, if somebody wanted to launch a new product, they had to have a distribution network which would cater to 2-3 million outlets, which would be very very costly and unless you had a ₹1,000 crore turnover, you won’t be able to afford that,” the maker of iconic hair oil brand Parachute and edible oil brand Saffola said in a conversation at the Business Insider Global Trends Festival 2020. It didn’t end there. The next big expenditure to ensure your brand is known and becomes a household name, companies had to splurge big money in television advertising. “So, for a startup there would be a lot of odds before entering the FMCG sector. But with the emergence of e-commerce, you can prototype your products in these options and also use digital marketing, which is not as expensive as television marketing. We have seen a whole host of new entrepreneurs entering the consumer sectors,” he added. But the $6 billion Marico is not sitting back and watching this space evolve. It is changing its approach too. Marico’s own tryst with e-commerce Marico has been building up a portfolio of e-commerce with Mariwala’s son Rishabh leading the segment. Within the company, they also have a front-end analytics team called Marico Miner League, which leverages Artificial Intelligence and works on “predictive modelling using digital and e-commerce platforms data, enabling the business with right decisions and spend optimisation”. “Marico has significantly enhanced presence in modern trade and e-commerce, with the share of these channels increasing from 12% to 22% over the past two years,” said the company in its annual report of FY20. The pandemic has provided an opportunity to pump it up further. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Marico’s financials </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY19 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7,315 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7,334 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Profit after tax </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,043 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹926 crore </td></tr></tbody></table> <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Segment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Contribution to total sales </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Modern Trade </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">E-commerce </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td></tr></tbody></table> By the end of the second quarter (June-September), the company said that traditional trade and e-commerce were driving growth for Marico.The company’s second quarter earnings are scheduled to be announced on October 28, 2020. Marico has an eye for startups entering the space too It is bracing for a game where younger, more agile startups are making a mark, and he is buying out some of them, like Beardo and Mamaearth, too. Marico has also completed the 100% acquisition of the Ahmedabad-based startup Beardo, in which it had first acquired a stake in 2017. Beardo’s strong presence in the online men’s grooming segment is what drew Marico to the startup. Talking about Beardo, Mariwala said, “At some stage of their journey, where they reach a certain level of turnover and when they have to expand it to physical distribution, that time they find it difficult – that’s when they are forced to divest or get into some sort of partnership.” Even during the pandemic, Marico hasn’t been much affected as most of its products fall in the essentials category. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/covid-19-vaccine-updates-in-india-oxfords-vaccine-to-be-available-in-indian-market-by-march-bharat-biotech-to-develop-an-intranasal-vaccine/articleshow/78741876.cms">COVID-19 vaccine updates in India: Bharat Biotech gets nod for phase III trials of Covaxin in India</a>

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