BUILDING THE MARICO OF tomorrow
Our commitment towards a sustainable world has now transformed into a much larger and
ambitious vision as we embark upon the ‘Sustainability 2.0' journey, launched on June
5, 2022, commemorating the 50th anniversary of World Environment Day (led by
the United Nations Environment Programme).
Dear Shareholders,
It is a great privilege to present to you the fifth Integrated Annual Report for your
Company for the financial year 2022-23. As we reflect on fiscal year 2022-23, your Company
has delivered a fairly resilient performance in a rather challenging business environment.
Escalating geo-political tensions, volatile commodity prices, inflationary pressures and
rising interest rates marked the operating environment during the year. Consequently, the
FMCG sector grappled with a subdued demand sentiment, which was even more pronounced in
rural consumption trends. However, with inflation moderating and commodities stabilising
gradually in the latter half of the year, some green shoots of recovery have emerged as
overall FMCG sector volume growth moved into positive territory in the last quarter of the
fiscal year after five consecutive quarters of decline.
Over the last few years, there have been notable, and probably, lasting shifts in
consumer behaviour and preferences such as much faster adoption of the digital medium for
shopping, entertainment and making payments, heightened focus on health and wellness and
stronger push towards sustainable and ethically-produced products. Your Company continues
to prioritise the needs and preferences of consumers, to be able to create long-term
relationships, build trust and foster loyalty, which are crucial levers for succeeding in
today's highly competitive and dynamic market. We constantly endeavour to understand and
meet the expectations of our consumers through innovative and effective products that
enhance their lives and provide a delightful experience. Notwithstanding recent trends, we
remain confident of India's robust consumption story and believe that an evolving and
strengthening portfolio, coupled with a consumer-centric approach, will enable your
Company to drive sustainable value creation for all stakeholders.
Sustainability – A way of life
Your Company has always been a firm believer of creating value for the society by
building solutions to its challenges. Sustainability lies at the centre of our business
strategies while we aim to create shared value for all. As I had alluded to in my last
letter, we were able to surpass the ambitious five-year targets set across various
environmental, social and governance (ESG) parameters up to FY22. Our commitment towards a
sustainable world has now transformed into a much larger and ambitious vision as we embark
upon the ‘Sustainability 2.0' journey, launched on June 5, 2022, commemorating the 50th
anniversary of World Environment Day (led by the United Nations Environment
Programme). The Sustainability 2.0 framework comprises over 50 key performance indicators
across eight materially relevant categories and serves as a launchpad to achieve our
Decade of Action (2030) vision and purpose. The eight focus areas of the Sustainability
2.0 journey are Net Zero Emissions, Water Stewardship, Circular Economy, Responsible
Sourcing, Responsible Brands, Inclusion and Diversity, Sustainable Agriculture and Human
Rights & Ethics. Your Company is committed to achieve ‘net zero emissions' in its
domestic operations by 2030 and global operations by 2040. To ensure your Company's
successful transition to a net-zero, carbon neutral and climate resilient future, it will
drive faster adoption of renewable energy, low-carbon technology, carbon forestry and
completely phase-out fossil fuels from its operations.
India is one of the most water-stressed countries in the world, and therefore,
judicious use of water by all is a key responsibility to ensure there is enough supply for
community usage and agriculture. We are aiming for certified water-neutral operations in
all manufacturing facilities. To achieve this, we have developed a long-term plan until
2030 to replenish more water for communities than we consume. Under ‘Jalashay' our
water stewardship programme, we have created over 290 Crore litres of water conservation
capacity pan- India till date, especially around our manufacturing locations and key
sourcing areas of our raw materials. Plastic waste management has become one of the most
pressing environmental issues of today and solving it requires an enabling ecosystem with
stakeholders collaborating and devising innovative solutions. Under ‘Upcycle', an
initiative towards perpetuating a circular economy, your Company aims to achieving 100%
recyclable packaging by 2025 (95% so We are aiming for certified water-neutral operations
in all manufacturing facilities. To achieve this, we have developed a long-term plan until
2030 to replenish more water for communities than we consume.
Our sustainability efforts have received appreciation in various forums during the
year. Marico was among 25 companies in the Asia-Pacific region to be honoured at the
prestigious Steward Leadership Summit for its efforts in equipping farmers with
sustainable agriculture methods.
far), phase out hazardous substances such as PVCs, and introduce at least 30% r-PCR in
its packaging portfolio. We continue to fulfil 100% of our Extended Producers'
Responsibility (EPR) targets. Your Company strongly believes in purpose-driven brands that
not only delight consumers but also contribute positively to the community at large. Under
the ‘Parachute Kalpavriksha' initiative, we work towards improving small-scale
farmers' productivity. Since its launch, the program has expanded its reach to 3,11,000
acres of farms and 81,000 farmers, leading to 16% yield improvement for those who have
participated in the program for over a year. The brand, Nihar Naturals Shanti Amla,
continues to champion the cause of progress and nation building by contributing a part of
its profits towards girl child education. The ‘Nihar Shanti Pathshala Funwala'
programme focuses on upskilling and empowering teachers in government schools. Over 3 lakh
teachers have been trained through a mix of workbook-led and digitally enabled English
literacy courses and more than a million students have benefitted from the programme. We
continue our work towards nurturing brands, which are powerful agents of change, driving
innovation, sustainability and social progress. Marico Innovation Foundation (MIF), a
not-for-profit organization set-up in 2003, supports disruptive innovations in businesses
and social sectors in India. Driven by a commitment to make a progressive impact, MIF
works tirelessly to provide assistance to potential game changing innovations along their
growth journey. Over the past two decades, MIF has grown to be a torchbearer of innovation
having been associated with 100+ ideas through various programs and themes. In January
2023, MIF also announced the launch of the first of its kind playbook, titled Innovation
in Plastic: The Potential and Possibilities, which analyses and provides holistic insights
on the potential solutions to address the swelling global challenge that plastic waste
presents, by throwing a spotlight on 15 innovations in India that are working towards
solving it. The Report, developed in collaboration with two knowledge partners, Indian
Institute of Science (IISc) and Praxis Global Alliance, also highlights learnings from
past innovations and initiatives undertaken at the international, national, corporate, and
city level to support circularity in plastics. Our sustainability efforts have received
appreciation in various forums during the year. Marico was among 25 companies in the
Asia-Pacific region to be honoured at the prestigious Steward Leadership Summit for its
efforts in equipping farmers with sustainable agriculture methods. I am also pleased to
share that Marico was the only company in the FMCG sector to feature in the
‘Leadership' category in CRISIL's Sustainability Yearbook 2022. The Economic Times
felicitated your Company as the Corporate Citizen of the Year 2023 in recognition of its
initiatives and commitment to delivering value for society.
People-first philosophy a key ingredient for longevity
Trust, ownership, innovation, inclusion and collaboration are key tenets that form the
bedrock of our culture. We have always imbibed a ‘people-first' approach, which has
guided us towards achieving positive outcomes and meet our business objectives, holding
firm even during unprecedented levels of uncertainty that we have witnessed in the
operating environment over the last three years. During the year, we continued our efforts
to develop a future-ready talent pipeline where the major focus has been to empower our
home-grown talent through bespoke learning interventions and internal movements, thereby,
transforming them into ‘leaders of tomorrow'. We have also taken significant steps in
our journey towards fostering Inclusion and Diversity through consistent evolution in our
policies, processes and infrastructure, as we create a conducive growth environment for
all and build organizational resilience.
ForwardTogether–Building Marico for the future
In current times, the business landscape is in a constant state of flux and it is
imperative for companies to evolve and adapt to changing market conditions and consumer
trends. I believe that organizations, which embrace digital technologies, focus on
innovation by incorporating a culture of creativity, ingrain sustainability considerations
in business strategies and foster a culture of learning, are most likely to create
long-term value for its stakeholders. As we aim to become a leading FMCG multinational in
each of the chosen emerging markets of Asia and Africa, we remain focused on accelerating
our portfolio diversification, strengthening our distribution infrastructure, leveraging
advanced digital technologies and empowering our people. Your Company will continue its
steadfast commitment to propel the levers of growth across its diverse product portfolio
and markets, while maintaining a long-term perspective on sustained growth and competitive
advantage. The Board has continued to exhibit an unwavering commitment to your Company's
mission to drive growth and innovation, while upholding the highest standards of corporate
governance. I continue to act as the Non-Executive Chairman of the Board, while Saugata
continues to lead your Company's strategic growth initiatives. I also continue to lead
efforts to improve the collective functioning of the Board and am actively involved in
your Company's CSR initiatives. I am pleased to welcome Mr. Rajan Bharti Mittal as an
Independent Director on the Board. Mr. Mittal brings with him an astute business acumen
and a fresh perspective through which I am sure your Company will greatly benefit. I want
to express my heartfelt appreciation to the Board for their ongoing engagement and
guidance and to our shareholders for placing their unfettered faith in Marico. I am
grateful for the steadfast commitment of our members, even amidst fairly challenging
times. I would also like to express my sincere gratitude towards all our business
partners, vendors and associates for their sustained support as we continue to chart our
way forward towards building a future-focused Marico. Warm regards,
Harsh Mariwala
Chairman