International Business Group (IBG)

Marico's International Business Group is within the top three export divisions amongst Indian Consumer Goods companies. Marico reaches out to more than 20 countries in the Middle East, Asian sub-continent, Australia and USA. Marico's product offerings in the international markets include Parachute Coconut Oil, Perfumed Oils, Hair Creams and Edible oils. IBG has now obtained Export House status.

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 topline 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 offerings in hair oils, hair creams and edible oils also.

Customising 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 Cream in Gulf is increasingly growing into a big brand.

	IBG Gulf:

The past ten years have witnessed a concretization of the Parachute brand equity in the Gulf. With a steady growth in the hair-oil portfolio and the establishment of deep-rooted distribution, the IBG business in the Gulf now seems headed for a rapid growth. The turnover of IBG Gulf is 35 crores The product portfolio consits of PCNO, Hair oils, Creams and hamam ziet.

Overview on each and every product:

Category	Market Size	Market Share	Brands/ Variants
PCNO	1400 klpa	95% (in Premium CNO Category)
Hair Oils	2400 klpa	17%	Parachute Lite, Parachute Gold, Parachute Jasmine, Parachute Sampoorna Parachute Hair Tonic
Hair Creams	4000 klpa	14%	Extra Nourishing Cream Anti-Dandruff Cream Intensive Care Cream Extra moisturizing cream Amla Cream Hamam Zait

	IBG – Bangladesh (MBL)

2002:Marico established a factory on foreign soil – Bangladesh. In Bangladesh, Marico operates through Marico Bangladesh Limited(MBL), a wholly owned subsidiary Manufacturing facility at Mouchak, near Gazipur Marico is the first Indian company to have a manufacturing location in Bangladesh. The steady growth of CNO franchise, with better product quality along with direct and indirect distribution provides good opportunity for IBG business in Bangladesh.

MBL, acquired soap brand ‘Camelia to signal its entry into the Toilet Soaps market in Bangladesh in early 2005. In Oct 2005, MBL, also acquired the Toilet soap brand ‘Aromatic’ from Aromatic Cosmetics Ltd which enjoys a high brand equity and has a strong recall amongst consumers. MBL enjoys a strong distribution reach of about 1,30,000 outlets through Parachute. The Soap brands can ride this network.

	IBG- Other Countries

The other countries where Marico has its business are Nepal , Bhutan , SE Asia, USA , SAARC, Myanmar and Trinidad . The product portfolio in Nepal and Bhutan consists of PCNO, Hair oils (Parachute Sampoorna, Parachute Jasmine, Hair and Care, Shanti amla, Silk and shine etc.) and Edible oils ( Saffola gold, Sweekar) and the turnover is around 3.5 crores. The product portfolio in SE Asia, USA , SAARC is PCNO and turnover is around 2 crores.

IBG's product offering: The portfolio comprises     Parachute Coconut Oil Parachute Gold - a hair oil Parachute Lite hair oil Parachute Sampoorna hair oil Parachute Amla hair oil Parachute Jasmine hair oil Hair Cream - Extra Nourishment, Anti Dandruff and Intensive Care variants Hamam Zeit Parachute Beliphool hair oil Silk n Shine hair conditioner Saffola and Sweekar Refined edible oils

	Geographical Reach
	UAE, KSA, Oman, Qatar, Bahrain, Kuwait, Yemen, Lebanon, Sudan, Iran Bangladesh, Pakistan, Nepal, Bhutan USA, Singapore, Malaysia, Australia

1) Parachute Coconut Hair Creams has been one of the most successful products of Marico in the Gulf, ever since its launch 5 years back. It currently enjoys a market share of more than 22% in the UAE markets. It brings the goodness of coconut in a cream format which is completely non-greasy and has a pleasant fragrance and is easy to use. Parachute Coconut Hair Cream comes in four different variants :       Parachute Extra NourishmentCoconut Hair Cream - which is perfect for daily use as a post hair wash formula which provides the necessary nourishment and shine that your hair needs Parachute Extra Moisturising Coconut Hair Cream - which has a unique moisture balance formula and Aloe Vera - which lock moisture into your hair, making it soft, silky and easy to manage Parachute Intensive Care Coconut Hair Cream - use ful for dry damaged hair, it consists of 6 vital ingredients for hair that is regularly treated with colour, perms or blow driers Parachute Anti Dandruff coconut Hair Cream - for itchy, flaky scalps and can control severe dandruff giving healthy, shiny hair and a completely dandruff-free scalp 2) Parachute Hamam Zait Creams - These Post wash creams come in three variants, each offering a unique hair treatment. After shampooing, massage the cream on the scalp with your fingertips, leave it wrapped in hot towel for 10-15 mns before rinsing off.     3) Parachute Range of Hair Oils include the following amongst others :   Parachute Gold Coconut Hair Oil - for nourished and lively hair. It has Coconut Oil which penetrates upto 3 times more than any other oil. Use it before shampooing your hair Parachute Sampoorna Coconut Hair Oil - for strong, thick hair. An efffective combination of natural ingredients give thick, long beautiful hair. Coconut Oil penetrates deeper to nourish, Almond Oil helps strengthen hair while Hibiscus helps to thicken hair

	IBG Then and Now

	1998	2005
Turnover - Rs. Crore	12	96
Share of Total	3%	9.5%
Products	PCNO	PCNO Hair Oils Hair Creams Soaps Other new products
No Of Countries	12-13	25

	Future Plans

The International Business Group will continue to consolidate its existing franchise, launch new products in hair oils and other hair care / skin care categories and expand to new geographical markets.