Marico Limited, one of the India’s leading consumer goods companies operating in global beauty and wellness category has released its 2019-20 Integrated Annual Report, which informs their stakeholders about the organisation’s value creation process, using both financial and non-financial resources. The report is also aligned with the nine principles of the Ministry of Corporate Affairs’ National Voluntary Guidelines (NVGs) on the social, environmental and economic responsibilities of business.
Headquartered in Mumbai, the company had its presence in over 25 countries. Its nurtures leading brands across category of hair care, skin care, edible oils, healthy foods, male grooming and fabric care. It has 8 factories in India.
In FY 2020, Marico achieved a consolidated turnover of Rs. 7,315 Crore, only marginally lower than last year, and consolidated PAT of 1,043 Crore, up 13%. up 13%. The operating margin stood at 20.1%, up 200 bps from last year. The domestic FMCG business achieved a turnover of Rs. 5655 Cr in FY 2020, down 2% over the last year.
Sustainability at Marico
Sustainability is embraced as a part of Marico’s mainstream business approach to create shared value. Marico’s six long-term sustainability focus areas include responsible resource consumption, climate change, circular economy, sustainable supply chain, product responsibility, and community development. In this journey, we envisage working with all our stakeholders to attain a more secure, sustainable and inclusive future.
Marico lives by its purpose of ‘Make a Difference’ and continuously strives to create shared value in collaboration with all stakeholders. ‘Shared Value’ is anchored in the ethos of business and applied to ensure that all business decisions balance economic, environmental and social considerations. To enable this, it has charted its path on sustainability, with dynamic and challenging objectives as milestones.
Key Sustaibility practices highlights from 2020 include:
- 640 million liters of water conservation capacity created, which is equivalent to 3.2 times the water footprint in its operations in India.
- 31% reducation in water intensity from 2014.
- It consumed 20.3 crore litres of water in operations, a 9% reduction from previous year.
- The water intensity for India operations stood at 35.9 kilo litre per unit crore revenue, which is a decrease of 31% from year 2014, and 8% from the previous year.
- 24, 875 beneficiaries of the CSR initiative within community near factories.
- Comulative water conservation capacity stood at 1.36 Billion liters.
- 95% packeging material used are recyclable by wight.
- 79% energy consumed is from renewable sources.
- 68% reducation in Green House Gas (GHG) emision intensity from base year – 2013 (20% reducation from previous year).
- Resources to the tune of Rs. 31.4 Crore were invested in R&D activities this year, supported by a dedicated team of 73 personnel.
- 32% reduction in energy intensity from 2013.
- The thermal energy requirement at three of our manufacturing operations are derived from 100% renewable source (biomass).
- Spent Rs. 19 Crore on Corporate Social Responsibility (CSR) initiatives.
- It made steady progress on use of 100% recyclable packaging material. As on 2020, about 95% of packaging used by Marico is recyclable by weight.
- During the year, It has completed collection and safe disposal of 7,73,000 kg of non-recyclable plastic waste.
Sustainability is embraced as a part of Marico’s mainstream business approach to create shared value. It has a defined governance mechanism with the sustainabilikty/Business Responsibility Committee constituted by the Board of Directors and headed by the Chief Operating Officer (COO). According to the report the Head of the Committee reviews the sustainability performance of the Company, and assists the MD & CEO in driving the sustainability agenda set for each year. Company has formed a core team with responsibilities defined to ensure effective formulation of policies, implementation of projects and establisment of focus areas, targets and performance. Through this mechanism, we interact and engage with all stakeholders, including shareholders, consumers, employees, value-chain partners and the community, among others, in our sustainability journey.