How we are building future-ready verticals

Incubating future engines of growth

Marico’s portfolio of brands has remained the preferred choice for consumers with continuous enhancement of its offerings to meet their stated and unstated needs. In line with Marico’s focus on the changing preference of the consumers for newer channels of retail – be it modern trade or buying online, or preference for newer formats of products, new and more premium products, we are creating the portfolio of the future with premium hair nourishment, male grooming and foods.

The Company recently launched new premium categories like nutraceuticals and invested in companies such as Zed Lifestyle (Beardo) and Revolutionary Fitness (Revofit). We are increasing our digital footprint to improve consumer engagement and drive sales through e-commerce. This will also help us build consumer insights and data analytics capabilities.

How we are making in-roads into
male styling and grooming platforms

Marico is one of the leading players in the Indian male grooming segment with Set Wet and Parachute Advansed Men in its portfolio. To further our ambition of strengthening our presence and widening the portfolio in this segment, Marico acquired 45% equity stake in Zed Lifestyle Pvt. Ltd., the parent company of Beardo – an online-only male styling and grooming brand. With this investment, Marico has made an entry into the future-ready male grooming portfolio both in the online and salon space.

Beardo is a discerning brand for the urban man who is on a lookout for safe and specialised products/options to grow and maintain his beard. The Beardo product portfolio includes beard growth oil, wax and shampoo for beard; wax and serum for hair; lotion, soap, and facewash. Beardo has a strong presence in the online channels and salons, and almost three-fourth of its revenue is generated on e-commerce. With Beardo, Marico will cater to a niche category of consumers while gaining real-time access to rapidly changing trends data.

Business size and growth opportunity

The estimated ` 8,600 crore male grooming market is progressing at a rapid pace and is expected to grow at circa 20% CAGR over FY17‑20 (as per the BCG analysis report). The online market share of male grooming products is also heavily increasing and has higher penetration in e-commerce channels as compared to the overall personal care market.

Ashutosh Valani, CEO of the Zed Lifestyle Private Limited said, “We’ve always looked out for opportunities to reach more people with our growing product range in the men’s grooming market. In Marico, we have found a perfect strategic partner to help us broaden our market segment and significantly grow our brand while remaining faithful to the founding principles of Beardo.”

EXPERT STYLING FOR A CELEBRITY LOOK EVERY DAY WITH STUDIO X MALE GROOMING RANGE

As consumers evolve to a newly developed sense of styling inspired by the latest trends and celebrities, Set Wet has introduced Studio X, a new range of premium grooming products under its leading male grooming brand – Set Wet to offer its consumers expert styling for a celebrity look. Studio X is Marico’s first digital exclusive brand.

Amplifying its presence in the male grooming market, the Studio X range comprising shampoos, body wash, face wash, hair pomade, hair wax, hair and beard serum and perfume will offer the 21 to 25 year old youth who have recently stepped out of their teenage years and developed a matured sense of fashion, a complete range of personal grooming that will help them achieve celebrity styling every day.

This range, from Marico’s global stable, has been co-created by celebrity stylist Aalim Hakim.

How we are riding the wave of next
generation health and wellness platforms

Over the years, Marico, through ‘Saffola’, has championed a proactive and healthy lifestyle. To take the commitment forward, the Company recently acquired 22.5% equity stake in Revofit, owned by Revolutionary Fitness Private Limited. This alliance is yet another step towards strengthening Marico’s healthy lifestyle offerings, by leveraging Revofit’s integrated platform.

Revofit (www.revofit.com) is an integrated fitness and wellness solutions app (available on Android and iOS) which provides a holistic approach to healthy lifestyle. It provides a wider choice to the urban, health conscious, working professional who is aware of his or her health habits and is looking to integrate changes through diet, fitness, nutrition and exercise in the daily schedule.

Sunjay Ghai, Co-founder and CEO, Revolutionary Fitness Private Limited, said, “Marico stands for innovation and we take great pleasure in partnering with them on our journey to make India healthier. Marico’s deep domain knowledge in marketing, distribution and product development, coupled with our strengths in digital channels and focus on niche FMCG products for millennials, will enable cross pollination of ideas to create a robust high growth business.”

MANAGING WEIGHT ISSUES WITH SAFFOLA ACTIVE SLIMMING NUTRI SHAKE

Saffola Active Slimming Nutri Shake is the latest addition in the range of proactive health solutions, a meal replacement product. Building on the promise of offering consumers diverse health choices and increasing the pace of product innovation, Marico forayed into nutraceuticals with Saffola Active Slimming Nutri-Shake. Demanding work-life and changing food habits have led to meal replacement options gaining popularity in India. This gives Marico an opportunity to offer customers a product that makes weight management easy. The new range of shakes is available on all leading e-commerce platforms, helping consumers build and fortify their diet regime with ease.

Being digitally present also gives Marico an advantage to further grow the online platform and engage with channel partners to introduce a new range of health foods. There are plans to introduce numerous health solutions such as health bars, health tonics and savoury foods that can become an integral part of the consumer’s diet plan. These products will not only aid weight loss but also boost overall health.

The nutraceutical industry has grown via leaps and bounds and provides a massive opportunity for growth. Today this industry is worth approximately $4 billion in India and is growing at 21% annually. Factors like changing mindsets, increase in disposable incomes, rise in healthcare awareness and willingness to explore better health options are fuelling the trend. Proliferation of retail chains specialising in pharma, beauty and healthcare products along with the ubiquity and ease of e-commerce shopping is also contributing to the growth.

STAYING FIT AND FULL WITH SAFFOLA ACTIVE SOUPS

Marico entered the soup segment with Saffola Active Soups, adding to the range of proactive health solutions. Saffola Active launched Saffola Active Soups, a high fibre option for the healthconscious consumer helping them stay full and stay fit. Saffola has been innovating in the health foods segment and this new range of in-between meal option will help Marico build the portfolio of the future. Saffola Active Soups is also a step towards adding premium products in the portfolio and helping people develop the habit of healthy snacking.

We launched the prototype in Mumbai and the response from trade and consumers has been encouraging, with a national rollout planned in H2 FY19. The soups category, estimated to be 300 crore has grown at 29% at a 3 Year CAGR level.