It is a pleasure to present the fourth Integrated Report of your Company for FY22.

The last year was extraordinarily challenging for everyone, including our consumers, our people, our business associates and the community at large. However, it was the resilience and positive spirit of all stakeholders that led your Company’s performance to belie, to a large extent, the difficult circumstances during the year, which were brought about by emerging variants of the COVID-19, geo‑political tensions and their accompanying effects on the macro-economic environment. In the VUCA world, we remained committed to our purpose of creating shared value for all. Your Company will remain focused on fortifying its three core assets, namely brand, people and culture, which will ensure that it continues to withstand the seemingly constant forces of unpredictability and disruption. While the core domestic and international portfolios continue to anchor the performance, the new portfolios and capability building initiatives pave the way for sustained and profitable growth in the long run. The near term notwithstanding, we remain confident of the medium- and long-term prospects of the FMCG sector as transient macro disturbances settle, and fundamental drivers of the Indian consumption story come to the fore.

Under the Parachute Kalpavriksha initiative, we aim to improve productivity of small-scale farmers. Nearly 71,660 acres of farms, encompassing over 24,000 farmers, were enrolled in FY22, while the programme has boosted productivity by 15% y-o-y in the last three years for the farmer members who have participated in the programme for over a year.

Towards plastic waste management, your Company has achieved 96% recyclable packaging through the ‘Upcycle’ programme. Additionally, in-line with Extended Producer Responsibility (EPR) towards collection and environmentally safe disposal of postconsumer plastic waste, we collected, co-processed and recycled ~6,300 MT of plastic waste in FY22. Your Company has also joined the India Plastics Pact (IPP), a global leadership platform to propel India’s future towards integration of circularity principles in the plastics’ ecosystem, as a Founding Member.

Evolving our already strong culture

At times, adversities bring out the best in us. The pandemic has reset major work trends and made us revisit our people policies. I believe that for companies that have always put people first, it gets relatively easy to navigate such uncertainties. Over the years, our people, values and culture have formed the bedrock of what Marico is today. We have trusted our members to deliver the right outcomes for the business.

We have realised that with changing times and business priorities, people’s aspirations are continuously evolving as well. With a strong belief that business and talent aspirations go hand in hand, we launched our new Talent Value Proposition (TVP) this year. It is aimed at nurturing the growth of the members by fostering a diverse, autonomous and transparent work environment. Talent and diversity are key in creating a culture of innovation as it brings in great ideas, an open culture where one can communicate ideas and, the most important of all, is to remove the fear of failure, because it halts innovation. With this step, we aim to futureproof the talent proposition for our members.

Your Company introduced new Ways of Working in the latter half of 2021 and became one of the first few companies to launch a hybrid work model. We have moved to this model for the long term and have adapted our workplace to create a sustainable hybrid framework.

Building a resilient future

Your Company aims to become a leading emerging market FMCG multinational in chosen markets in Asia and Africa. We consistently endeavour to delight consumers with best-in-class products that meet their needs and aspirations by nurturing and building trusted brands with a strong purpose and proposition. In addition to strengthening the core franchises, your Company is directing significant energies towards diversification of the overall portfolio with focus on foods, premium personal care including digital-first brands, and accelerated growth in the international business. We foster a longterm mindset to build an organisation that outlives the founders and wish to leave behind a legacy that thrives through generations. Constant innovation and a culture that encourages new ideas will be key to realising this vision.

Your Company benefits greatly from the wisdom of its Board, who is committed to providing constructive critique on strategic matters and advice on matters requiring domain expertise. I continue to act as the Non-Executive Chairman and Saugata continues to lead your Company’s strategic growth initiatives. I will also continue to lead efforts to improve the collective functioning of the Board and am actively involved in the Company’s CSR initiatives. I had stated our intent to undertake a Board rejuvenation exercise in my last letter. We were pleased to welcome Mr. Rajeev Vasudeva, Ms. Apurva Purohit and Ms. Nayantara Bali as Independent Directors on the Board of your Company and appreciate the fresh perspective that they bring to the table.

I thank the Board for their ongoing engagement and guidance, and our shareholders for putting their trust in Marico. I take this opportunity to thank all our people for their extraordinary commitment to the organisation even in the face of unprecedented challenges. I would also like to express my sincere gratitude towards all our business partners, vendors and associates for their unwavering support as we are geared up to make concerted efforts which shall propel Marico into the next phase of growth.

Your Company also continued to drive social value creation through education, skilling and livelihood sustenance initiatives."

Warm regards

Harsh Mariwala

Chairman