Marico eyes business in Europe

To market products in Europe through US based subsidiary Sundari LLC

India's leading skin care service and global ayurvedic company Marico Ltd has decided to spread its wings to Europe.

Marico was in the limelight recently for its series of acquisitions in Bangladesh through its subsidiary Marico Bangladesh Ltd and the recent acquisition of a unit in Kerala.

Marico is known for its brand 'Parachute,' a household name in India.

Taking to Business Standard on his visit to Vadodara to inaugurate Kaya Skin Clinic, Harsh Mariwala, CMD of Marico Ltd, said, "By April 2006, the Company will foray into the European market with its range of health care products."

Marico will market its product in Europe through its US based subsidiary Sundari LLC.

In 2003, Marico had acquired 63 per cent, controlling equity interest in Sundari LLC, a US based company.

"Initially we will enter Spain and Germany with our product where we have already appointed our representatives," informed Mariwala.

Expressing his interest in investing in the lucrative healthcare market in Europe, he said, "At a later stage we will enter into other countries of the Europe".

"We will not enter into direct sales but rather go for indirect sales," said Mariwala.

The company will use Sundari's sales franchise Spa Channel to distribute its product.

However, the company was yet to finalise which healthcare products it will launch in Europe.

"The health care product will be on the line of similar product that the company has introduced in US and in other countries," said Mariwala.

While talking about the recent series of acquisition that the company undertook in Bangladesh and in India, he said that the company would like to expand and consolidate its position by blending organic and inorganic means of expansion.

"The expansion process through new acquisition which we had undertaken will continue as we had achieved 14 per cent growth rate," said Mariwala.

"In hair oil segment the company has only one major competitor "� Dabur," added Mariwala. However the company is hopeful to consolidate its position through inorganic expansion process.

The company holds 52-53 per cent share in coconut hair oil segment making it the biggest player in hair oil segment.

It has 5 "� 6 per cent market share in toilet soap market in Bangladesh whereas in India it has nil market share.

The company had a turnover of Rs 1000 crore in 2004-05 while in current financial year it expects to cross Rs 1140 crore.