Industry Profile: FMCG is the fourth largest sector in the Indian economy. The retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 672 billion in 2016, with modern trade expected to grow at 20 percent – 25 percent per annum, which is likely to boost revenues of FMCG companies. There are three main segments in the sector – food and beverages, which account for 19 percent of the industry; healthcare which accounts for 31 percent; and household and personal care, which account for the remaining 50 percent. Accounting for a revenue share of around 60 percent, the rural segment is the most significant contributor to the overall revenue generated by the FMCG sector in India and recorded a market size of around US$ 29.4 billion in 2016 and is expected to grow to US$ 220 billion in 2025. Demand for quality goods and services has been rising in rural areas of India due to improved distribution channels for manufacturing and FMCG companies. Semi-urban and urban segments accounted for 40 percent of the overall revenues recorded by the FMCG sector in India.
Company Profile: Marico Limited is one of India’s leading consumer products companies operating in beauty and wellness. The company operates in a variety of businesses. Marico’s India business markets household brands such as Parachute, Parachute Advanced, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet, Mediker, and Revive, among others. The International business offers unique brands such as Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic, Isoplus, Code 10, Ingwe, X-Men, and Thuan Phat
Shareholding pattern: BSE Data
Financials and ratios : [table id=135 /]
Future Prospects: consumption is a large part of Indian GDP. Marico having leadership in the oil segment, is one good company. It is growing. The company is very much concentrated and depends on one product. If there is a significant change in the price of coconut, there will be a harmful effect on the company. That is one risk I am taking into account while analyzing this company.
