MARICO Share price

The Company was incorporated on October 13 1988 under thename of Marico Foods Limited. It obtained the Certificateof commencement of business on November 22 1988. The nameof the Company was changed to Marico Industries Limitedw.e.f. October 31 1989. Seven members of the Mariwalafamily were the subscribers to the Memorandum and Articlesof Association of the Company. In March 1989 The BombayOil Industries Limited agreed to provide export services intechnical financial and managerial matters connected withthe initial setting up of the projects of the Company inconsideration of controlling the majority of thecomposition of the Board of Directors of the Company. As aresult of this arrangement the Company became a subsidiaryof The Bombay Oil Industries Limited.In April 1990 the Company commenced its commercialoperations by taking over the business of consumer productsdivision of The Bombay Oil Industries Limited (BOIL). Themanufacturing operations commenced by taking on licence thefactories of BOIL located at Sewree and Mazgaon in Mumbai.The licence agreement for Mazgaon factory was renewed fromtime to time till February 1993 whereupon on stabilisationof the Company''s operations at Jalgaon factory the licenceagreement was terminated. The licence agreement for Sewreeunit has been renewed from time to time and presently isvalid upto December 31 2000 on a monthly licence fees ofRs. 3 lacs plus reimbursement of actual expenses incurredby BOIL if any in respect of the factory. The workforce atthis plant are on the rolls of the Company. The Company hascomplied with the relevant formalities in connection withthe takeover of the consumer products division of BOIL.The Company entered into a Registered Users Agreement datedSeptember 26 1990 with BOIL for the use of the brands"Parachute" and "Saffola" for an initial period of 3 yearscommencing from April 1 1990 on payment of royalty @ 1%.0.75% and 0.50% for the 1st 2nd and 3rd year respectivelyon the net ex-factory sale price of the products ParachuteCoconut Oil and Saffola Refined Kardi Oil. The saidagreement was initially renewed for a further period of 3years expiring on March 1996 on a royalty of 0.75% and hasnow been renewed in perpetuity subject to payment of royaltyat the rate of 0.75% of the net ex-factory sale price ofthe products Parachute Coconut Oil and Saffola RefinedKardi Oil. No royalty is payable on any extensions ofthese brands. BOIL is entitled to terminate this agreementin the event of the shareholding of the Mariwala Group inthe Company falling below 25% of the paid up capital at anypoint of time or Mariwala group loses control over theCompany or in the event of the Company committing breach ofpayment terms.In December 1989 the Company entered into an agreementwith M/s. Rasoi Industries Limited for purchase of its unitlocated at M.I.D.C. Industrial Estate Jalgaon at anaggregate consideration of Rs. 175 Lacs. This unit had alicence to crush 60000 tons of seeds. In due course thisunit was refurbished and modernised and commercialoperations commenced in October 1990. This unit nowmanufactures Refined Edible Oils with an installed refiningcapacity of 27500 tonnes of oil.In order to meet the growing requirement for coconut oiland to take advantage of the nearness to the source of mainraw material the Company established a new plant atKanjikode Palghat District Kerala to manufactureParachute Coconut Oil. This plant with capacity of 24000tons of coconut oil per annum began commercial operation inMay 1993.The Company is engaged in the business of manufacture andmarketing of branded personal care products edible oilsfabric care products and processed foods. The Company''sproducts are sold under the brand names PARACHUTE SAFFOLASWEEKAR MARICO''S HAIR & CARE REVIVE and SIL.The products Parachute Coconut Oil Saffola and Sweekar aremanufactured at the Company''s factories. The productsMarico''s Hair & Care Revive Instant Starch Parachute Amlaand Parachute Herbal are manufactured on job work basis asper the Company''s quality specifications and under thebrand names of the Company. Presently the Company has twoSSI Units namely M/s. Amardeo Plastic Industries having itsfactory at Plot No. D-309/310 T.T.C. Industrial Area MIDCTurbhe Navi Mumbai - 400 813 and M/s. May & WinEnterprises Pvt. Ltd. having its factory at Plot No. R-565Rabale MIDC Navi Mumbai - 400 701 who are engaged inmanufacture of the said products. As the manufacture ofthese products does not require sophisticated technologycreation of additional capacity would not be a constraintat these units. Alternatively the Company could alsosource their requirements by entering into arrangementswith similar SSI Units located elsewhere.The SIL range of jams and food products are manufactured byKanmoor Foods Limited (KFL) and marketed by the Company.KFL is a subsidiary of BOIL and the Company has ashareholding interest of Rs. 1.45 crores in the paid upequity capital of Rs. 4.95 crores of KFL. The Company hasacquired the Brand `SIL'' from KFL in March 1995 for anaggregate consideration of Rupees Three crores. TheCompany has permitted KFL to use the brand name `SIL'' forsales to institutions and for exports for a period of 3years commencing from April 01 1995 on a royalty of 0.75%of the net sales value payable at the end of each financialyear.