Marico eyes acquisitions

NEW DELHI, OCT. 2. Marico Industries is keen on brand acquisitions in healthcare and hair care markets and has earmarked Rs. 50 crores for the purpose this year to boost overall growth and expand brand portfolio.

The company, which has identified marketing, product development and distribution as focus areas for boosting growth, is also likely to effect price cuts in Saffola, Sweekar and parachute brands of oils soon, a senior company official said here.

``We are open to acquisitions in both healthcare and hair care segments besides taking the brand extension route to grow," chariman and managing director of Marico Industries, Mr. Harsh Mariwala, told PTI. He, however, declined to comment on the corpus of funds set aside for acquisitions, but company sources confirmed the Rs. 50 crore corpus.

Mr. Mariwala said a 10-20 per cent price cut in Saffola, Sweekar and parachute brand oils was on the anvil - the second such price cut within the last six months - to pass on the benefit of cheaper raw materials to consumers.

``A further price cut will increase our market share since buyers compare loose oils v finished product prices. Also, this will help beat competition in both cooking oils and hair oil categories," he said.

Mr. Mariwala said brand extension had also been effectively used as a route for lateral growth. He said the company was eyeing 20 per cent bottomline growth this year by way of strict cost management and lesser raw material costs.

``Besides, we now do not have the annual Rs. 3 crores royalty outgo to Bombay oil industries for parachute and Saffola brands. This should mean annual savings," he said.

Earlier this year, Marico bought these two brands from Bombay oil industries for Rs. 30 crores one-time payment, as against the prior royalty arrangement and he said the buyout was `net positive'.

The company has Saffola and Sweekar brands of cooking oils, parachute hair oil and Sil brand of jams and spreads. Earlier this year, it exited the branded atta business by withdrawing Saffola Atta brand from the market.

- PTI

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