Marico's D2C brands have grown to Rs 500 cr business, says Mariwala

Marico, which has three D2C (direct to consumer) brands in its fold, now sees business worth Rs 500 crore from these internet-first FMCG offerings, the company's Chairman Harsh Mariwala said on Wednesday.

Mariwala, who was speaking at an event of FICCI Ladies Organisation (FLO) here, also said technology has influenced every business, even defensive sectors like FMCG.

Before the emergence of e-commerce and digital market initiatives, companies needed a budget of Rs 20-30 crore just to launch a product along with an all-India distribution network.

However, now with the advent of technology, this is not the case, he said, adding that several D2C brands such as Mamaearth have emerged in the FMCG space.

 

Regarding Marico, he said: "We have acquired three brands in D2C space - JustHerbs, True elements and Beardo and managed them differently."

"That has already grown and today they are Rs 500 crore business...We have participated in those disruptions through investments," he added.

During his interactive session, Mariwala also stressed on high standards of governance.

"Do not take shortcuts on compliances. This is my advice to entrepreneurs of any size. Get the highest thrust on the governance," he said, adding that the moment a promoter starts to compromise on compliance, the culture of the organisation gets destroyed.

It is important for society and even potential employees, who look at governance, he said. Moreover, good governance and compliance also pay back when a company gets listed and attracts a much much higher price, he added.

He also suggested that entrepreneurs should develop a unique and innovative proposition to win in such a highly competitive environment.

"If you are a new player with 'me too' proposition, then it is very difficult to succeed in the market. The key thing is to identify, how do you create a right to win. In my case, innovation has played a very important role," he said.

If we look at Marico's brands, in each and every segment it is a market leader and this is because the company has innovated or pioneered the segment, Mariwala added.

"Like in shampoo, we are not present, because we cannot be innovative and disrupt the MNCs," he said. "The key thing is to identify where you want to play and how can you play right to win."

Mariwala also highlighted the importance of identifying and creating a talent pool.

According to him, there would be a shortage of talent as India progresses.

Marico is one of India's leading consumer products companies operating in the global beauty and wellness space. In FY 2021-22, Marico -- which owns brands such as Parachute, Saffola, Hair & Care, Nihar Naturals, Mediker and Livon -- had recorded a turnover of about USD 1.3 billion.