A Industrial Tour - Marico Products

INDUCTION

Logo This logo reflects solidity supported by work ethics as well as growth

MARICO LIMITED 1857-Kanji Moorarji started with spices trade. 1948- Bombay oil mill for crushing and refining oil 1959- Launched first brand Saffola. 1965- Launches parachute 1971- Diversified into oil extracts 1980- Saffola & parachute emerges as market leaders. 1990- Group re structures and started to operate as Marico with the acquiring of a seed crushing and refining unit at Jalgoan

 Marico is a leading Indian Group in Consumer Products & Services in the Global Beauty and Wellness space. Marico's Products and Services in Hair care, Skin Care and Healthy Foods generated a Turnover of about Rs. 23.9 billion (about USD 478 Million) during 2008-091. Marico markets wellknown brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Aromatic, Fiancée, Hair Code, Caivil and Black Chic. Marico's brands and their extensions occupy leadership positions with significant market shares in most categories- Coconut Oil, Hair Oils, Post wash hair care, Anti-lice Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Marico is present in the Skin Care Solutions segment through Kaya Skin Clinics (85 in India and The Middle East) and its soap franchise (in India and Bangladesh).

Marico's branded products are present in Bangladesh, other SAARC countries, the Middle East, Egypt and South Africa. The Overseas Sales franchise of Marico's Consumer Products (whether as exports from India or as local operations in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded products and services. Marico was rated as one of the most innovative companies by Business Today-Monitor Group



"Every month, over 70 Million consumer packs from

Marico reach approximately 130 Million consumers in about 23 Million households, through a widespread distribution network of more than 2.5 Million outlets in India and overseas.

Marico's focus on sustainable profitable growth is

manifest through its consistent financial performance - a CAGR of 24% in Turnover and 27% in Profits over the past 5 years- while setting a record of several consecutive quarters of year on year growth- 38 for Profits and 34 for Sales.

The Marico scrip is listed on the Bombay Stock

Exchange (BSE) (Code 531642) & on the National Stock Exchange (NSE) (Code "MARICO").

AWARDS Marico has also won various other Awards, such as the following:  Marico won 4 Awards for excellence in Employer branding & Advertising to Talent at the  Remmy Awards 2009  Saffola won Media Abby Gold for the World Heart Day Radio entry  "Radio goes silent" at the Goa Fest 2009  Marico was awarded the IMC Ramkrishna Bajaj National Quality Award in Manufacturing Category     by the Indian Merchants' Chamber  Parachute won the Asia Star Award for the Parachute bottle warmer awarded by  Asia Packaging Federation  Parachute ranked 6th Most Trusted Brand in Bangladesh by The Bangladesh brand forum - an affiliate of the Global Brand Forum, Singapore in 2008  Parachute won the Outstanding Marketing Achievement Award - Silver in 2008

ORGANISATION STRUCTURE A Flat Structure :

Marico has a flat organizational structure, with just five levels between the Managing Director and the shop floor operator. At Marico, everyone is a member and not an employee. As a member, each individual is empowered. Marico believes that when you empower people to take decisions independently, to think and act as entrepreneurs, they push their own boundaries. Marico’s structure is dynamic & constantly evolving which defines clear roles and supporting relationships.

Marico’s Strategic Business Units:

The Marico Group business organization is structured into three Strategic Business Units (SBUs) 1)Consumer Products Business (India)      Personal & Nature Care      Wellness & New Products 2)International Business Group      International FMCG Business      Sundari Business Kaya (Branched out to form a separate company Kaya Ltd. a wholly owned subsidiary of Marico)      Kaya Skin clinics      Kaya Life

KAYA 

Kaya Ltd (erstwhile Kaya Skin Care Ltd.) was an entrepreneurial leap of faith marking Marico's entry into skin care solutions business. It was a true reflection of uncommon sense for a company in hair care products to move, instead of merely logical product extensions, straight into skin care services. It attempted to leverage Marico's strengths in the Personal Care business and in-depth understanding of the needs of the Indian consumer and her/his desire to enhance her/his natural beauty with the best cosmetic

Kaya Ltd. has been focused on meeting the emerging needs of the modern day consumers by providing useful and effective services in the beauty and wellness space. The pioneering effort has been in the area of skin care with Kaya Skin Clinic. For over 5 years Kaya Skin Clinic has refined the standards and professionalisms of the skin care industry through innovative, world class treatments and services that have been tailor made to suit Indian skin.



Today's consumer is awakening to the benefits of health and wellness. Changing lifestyles and the fast pace leading to deterioration in overall health and the growing obesity in the country led us to launch our new initiative Kaya Life. At Kaya Life we have created an innovative approach to a healthy lifestyle through effective, holistic, healthy and customized weight control solutions. With Kaya Life the aim is to raise the bar higher and create a new brand of weight control centre's that deliver on the Kaya promise of trust, safety, dependability and achievement of



INTERNATIONAL PRODUCT CAMELIA AROMATIC FIANCEE CAIVIL BLACK CHIC HERCULES

MARICO WORLDWIDE Think IBG=Think BIG Marico's International Business Group reaches out to more than 20 countries in the Middle East, Asian sub-continent, Australia. Evolution: The International Business Group was formed in early 90's to cater mainly to the demand of Indians settled abroad. The Business was then small and it has over the years assumed increasing proportions with a phenomenal top line growth rate of more than 30%. Initially Marico exported only Parachute Coconut Oil. Now it caters to varying needs of customers in different countries with a host of varied offerings.  

2004

-Marico Bangladesh ltd launched

2004

-Acquisition in Egypt(2 Egyptian

2007

-Marico enters into South Africa(25

branches)

countries)

Customizing for local needs:

To cater to customers who belong to diverse cultures and consumer habits the International Business Group has been customizing its products. For example, it offers perfumed oils to consumers in Bangladesh and Hair Creams and Hair Oils (with lower coconut oil content) to Arabs in the Gulf. Market shares of Marico's brands overseas have been rising. Parachute Coconut Oil is the market leader in Bangladesh with almost half the market share while other hair oils and hair care products have been consolidating their share of the market. Hair

CONSUMER PRODUCT BUSINESS  PARACHUTE NIHAR MEDIKER SAFFOLA REVIVE HAIR & CARE HOT OIL OIL OF MALABAR STARZ SWEEKAR SHANTI BADAM AMLA MANJAL

BUSINESS DIRECTION Business direction - COME WIN.

It explains what we want to do and where we want to go-2008 IN-2010  We commit ourselves to improving the quality of people's lives in several parts of the world, through branded Beauty & Wellness products and solutions.  We shall offer brands that enhance the appeal and nourishment of hair and skin through distinctive products and services based on the goodness of coconut, other natural substances and the underlying science of hair care and skin care  . We shall make available brands that contribute to healthy living, through, both products drawn from agriculture offered in natural or processed forms, and services.  

CONT…. We shall develop, in parts of the world beyond

the Indian Subcontinent, a franchise for our branded products and services. We shall aim to be a leader in each of our businesses through heightened sensitivity to consumer needs, setting up of new standards in the delivery and quality of products and services and processes of continuous learning and improvement.

CONT…. We shall share our prosperity amongst

members, shareholders and associates, who contribute in improving our equity and market value. We shall acquire the stature of a friendly corporate citizen, contributing to the betterment of neighborhood communities, where we are significantly present.

COMPOSITION AND CATEGORY OF

:

DIRECTORS OF MARICO LIMITED  NAME CATEGORY    Harsh Mariwala Director (Promoter)    Rajeev Bakshi Independent     Atul Choks Independent     Nikhil Khattau Independent     Jacob Kurian Independent     Rajen Mariwala (Promoter)  

Chairman & Managing

Non-Executive and

Non-Executive and

Non-Executive and

Non-Executive and

Non–Executive

Marico Innovation Foundation This foundation was created in 2003.Spheres

or processes which if strengthened enable business to prosper and uplift the status of the whole society. Setting up of the Marico Innovation Foundation reflects on Marico's belief in innovation as a process. The Foundation's objective is to fuel Innovation in India. Initiatives undertaken by the Foundation are:   Researches in the areas of cutting edge innovations in the Business and Social Sectors.    A unique partnership between top Indian Business Schools and the corporate world in Applied Innovation    Innovation For India Awards to reward Business and Social Innovation.

MARICO- KANJIKODE PLANT The Kanjikode (KKD) branch is the first coconut oil manufacturing plant of the Marico ltd Year of Commissioning = 1993 Area of the plant

= 23 acres.

VALUES OF MARICO THINK CONSUMER TO BE BIG Consumer centric Transparency & openness Opportunity seeking Bias for action Excellence Boudarylessness Innovation Global outlook

PARACHUTE

Departments in Marico KKD Plant

§RM STORES §OIL MILL §PQA §LAB §FILLING §PACKAGING MATERIAL STORES §FINISHED GOODS STORES §ENGINEERING STORES

MOVEMENTS IN INDUSTRY 1)MAN MOVEMENT Security phone enquiry Form filling issuing slip &id

2)MATERIAL

MOVEMENT(raw material) Tamil nadu-Trade copra Kerala-open market Local market

OVERALL PROCESS Refinery

Salvaged Oil

Scrap Rework

Raw Copra Material

Oil Mill

Farm Tank PCNO

Cake Storage

Filling

Farm Tank (BCNO) R C N O Refinery

Area

Quarantine

PQA Cake

Salvage

Audit Passed

Packaging Material

Vendor& Supplier

Finished Goods

Depot

RM STORES Buying § Gate buying § Copra collection centers § Trading Sampling § For loose loads, unloaded into hoppers, 100 Kg random sample is collected using the sample conveyor. § Bag loads before unloading into hoppers, 13 bags are picked at random, mixed and 100Kg is collected as sample. Types of inferiors § Burnt. § Green. § Rubbery. § Smoky. § Insect Infested

Type of inferior

Spec (% Max)

*

Farm Tanks

OIL MILL RM Silos

Weigh Tank

Cutters Day Tank

Conditioner Bagada Foots Re crush

Stage 1 Expellers

Oil

Cake

Stage 2 Expellers Cake

Cake Silos

Oil

Sumps

Cascade

Filter Press

OIL MILL Conditioners

 Decrease the moisture content  Renders required aroma to the Oil  To kill molds & Bacteria

First stage expelling (5 expellers)

 Reduces oil content of copra from 65-75% to 15-20%  Gives Oil of color 1.6 to 2.2 units

Second stage expelling (7 expeller)

 Reduces oil content of copra from ~15 - 20%

~7 – 8%  Gives Oil of color 7 to 15 units  Determines the final Oil in cake

to

OIL MILL.. FILTRATION   

Primary filtration through cascade conveyors. Filtration through filter press Clarity 4 to 10+ units

TERMENALOGIES.

X = Total oil in copra. Y = oil extracted. Z = Total oil in cake. UKPL = X - (Y + Z) Extraction efficiency = (Y/X)*100 % Yield = oil extracted/copra crushed

Plant Quality Assurance (PQA) PQA

Analytica l role

R&D / CQA interface

Developmenta l

Product Quality Assurance

Service to Business Associates

PQA….. Analytical roles § § § §

Analytical support to Commercial, on acceptance /rejection decisions. Assuring product quality - fitness for filling and selling. (Produced and purchased ) Ensure RM / Chemical testing methods are broad based. Support to value chain initiatives

Product Quality Assurance § § § §

Process & system audits, Implementation of new systems, Providing warning signals, Problem solving / trouble shooting

PQA… Interface to Market & Depot § § § §

Market / depot audit Obtaining feedback from depot & market, Analysis and actioning on key issues, Responding to customer complaints.

Service to Business Associates § § § §

Training, Adequate systems and procedures, Process, system, document and product audits, Up gradation of standards.

Developmental § §

Up gradation of product, process, packaging & specification. Operationalising of new ventures

PQA…. Support to CQA / R&D

§ In new product / pack development, § In commissioning new vendors, § Represent R&D/ CQA in the plant.

Legal

§ Weights and measures

Other activities § Colour § Clarity § Aroma

PQA… Colour Here the colour of the oil is tested using a machine called Tintometer. Colour in Lovibond Units = a*Y + 5*b*R Where, a = the sum total of the various yellow (Y) slides used, and b = the sum total of the various red (R) slides used E.g.: For Pcno colour 3.2 max For Flexi colour 3.0 max

Clarity. The clarity should be 4 units and above

PQA…. Aroma

Odour notes at only 3 basis aromas § RAW/ RANCID § SWEET § CARAMEL

Intensities only 4 levels § § § §

ABSENT – 0 LOW – 1 MODERATE – 2 HIGH –

LAB § Copra Oil Content …………………………. 67-68 % § Copra Moisture Content…………………6 – 10 % § Cake oil content…………………………….7 – 8 % § Free Fatty Acid…. indication of fresh oil/fat quality..< 0.05%. Free fatty acids are the result of reaction of water and fats at frying temperatures. Very high levels of free fatty acids (e.g. about 3- 4%) can result in excessive smoking and an unsatisfactory flavor.

LAB…. § Iodine Value (IV)….. 1. IV is reported in terms of the grams of iodine that will react with 100g of fat 5. Different types of oil have different IV. Therefore IV is a useful means to check for the type of oil and contamination with other types of oil § Peroxide Value (PV) 1. PV is an index to indicate the amount of oxidation a fat has undergone. 2. Freshly deodorized oil should have zero PV 3. PV as a measure of oxidation for unheated fats is useful for determining fat quality after processing and storage.

LAB… § Smoke Point 1. Smoke point is the temperature at which smoking is first detected in a laboratory apparatus 2. The smoke point of fatty materials is a measure of thermal stability of fats and oils when heated in contact with air. § Filter test This is to check for impurities in the oil

FILLING There are all together 9 lines operating in filling in-house.

Line No.1 50 ml Flip Tops line speed 140 bpm oil line used - day tank 1 16 headed filling machine. 12 headed capping machine Shrink wrap mechanism with wrapping 24 bottles at a time Shrink tunnel temp 140 to 180 deg Air pressure 6 to 8 kg/cm2 7 people in line

Turn Table

Filling M/c

Stacking

Capping M/c

Cartonising

Online Shrink Wrap M/c

Line No. 2 § § § § § § § § §

100 ml flip tops line speed of 120 bottles per minutes oil line is DT 1 12 headed filling machine 8 headed capping machine Shrink wrap mechanism with wrapping 16 bottles at a time Shrink tunnel temp 140 to 180 deg Air pressure 6 to 8 kg/cm2 7 people in line

Turn Table

Filling M/c

Stacking

Capping M/c

Cartonising

Online

Shrink Wrap M/c

Line No.3 § § § § § § §

200 ml flip tops line speed 70 BPM oil line DT 1 & DT 2 6 headed filling machine 8 headed flip top capping machine Air pressure 6 to 8 kg/cm2 7 people in line

Turn Table

Filling M/c

Capping M/c

Packing Table

Stacking

Line No.4 § § § § § §

200 ml tins line speed 120 TPM Oil line DT 1 REACON MACHINE TOOLS Seaming m/c with 4 heads Air pressure 6 to 8 kg/cm2 9 people in line

Turn Table

Filling M/c

Seaming M/c

Stacking

Online

Packing Table

Line No.5 § § § § § § §

20 ML Flip Top Bottles 6 Head Semi Automatic Filling Machine. 1 headed capping machine Line speed of 72 BPM Oil line used DT 01 Air pressure 6 to 8 kg/cm2 9 people in line

Turn Table

Filling M/c

Cartonising/ Stacking

Capping

Sealing

Bottle Rubber banding

Bottling

Line No.6 § § § § § §

1 liter pet bottles 2 head filling mechanism Line speed of 13 to 17 BPM Oil line used DT 04 6 people in line Single cap screwing mechanism.

Turn Table

Filling M/c/ Online

Sealing/Plugging

Stacking

Capping

Cartonising

Line No.7 § § § § § § §

500ml and 1 liter pouch machine GEMPAC make Machine capacity of 13 PPM Oil line used DT 02 Vertical form, fill, seal-- mechanism Air pressure 8 – 10 kg/cm2 6 people in line

Filling M/c/ Online

Packing

Sealing

Cartonising

Stacking

Line No.8,9 § § § § § §

Blister machines Make SEIMENS Capacity of 180 blisters per minute Oil line used DT 03 Air pressure 8 – 10 kg/cm2 2 people in line each.

PA 2000

SD4R

SD4S

Cartonising/Stacking

QUALITY CHECK AT FILLING Online weight & attribute checking

§ 2 continuous bottles per hour from each nozzle § 2 bottles per carton making 80 bottles per pallet

Attributes being checked are § § § § § § § § §

print peeling leakage oil smear loose lids print defects improper carton coding improper carton taping broken cap dents

Fill Target weight

Swam rule The Statistical average of Net

filled weight of a sample taken from a filled lot should be equal to or greater than the Net Weight declared.

Each individual pack should be

within

1

%

of

the

fill

DECLARATIONS ON PACKS § Name & Address of manufacturer § Name and address of packer, if packer is different from manufacturer § Common name of the commodity § Net Quantity § Mfd/PKD

PACKAGING MATERIAL STORES The functions of packaging are  Contain  Protect  Preserve  Dispense  Instruct/warn/inform  Handling Mainly packaging are classified into two types  Rigid packaging like

 Glass  Metal containers  Plastic containers

 Flexible packaging

§ Monolayer films § Multilayer films § Laminates (paper, plastic film, aluminum

PACKING Classification of measurements §

Attributes

§

Variables

General / Attributes Check HDPE Containers §

Appearance

§

Finishing

§

Performance Test

§

Printing Test

PACKING…. General / Attributes Check Tins § Weld split § Lid Projection. § Loose lids § Lacquering § Presence of Insect/dust/foreign matter. § Leakage. Dimensional /Variable Checks § Tins § Height § Body dia § Weight

FINISHED GOODS STORES Goods movements are categorized into three § § §

Oil movement Finished goods movement Bi product movement

Activities § § § § § §

Physical stock taking at in-house and subcontracts Priorities viewing the stocks at depots. Coordination with materials Call up for trucks at 9 A.M Loading instructions Inspection of trucks according to the checklist.

ENGINEERING STORES Main functions of engineering stores are  Procurement of engineering items

§ § § § § §

Storage of engineering items. Supply of engineering items as per demand. Arranging for servicing of utilities. Maintaining of minimum inventory levels. House keeping. Engineering scrap handling.

Main spares handled by engineering stores  Furnace oil

§ § § §

High speed diesel Insured spare parts Working spare parts Electrical spares

ENGINEERING STORES…. Classification of items Done on the basis of the cost A – class--- B – class--- C – class---

1500 & more. 750 – 1499. 001 – 749

Mode of purchase Local purchase.  ARIBA. 