The company will spend Rs 1.5 crore on every clinic to be opened in the country and overseas. It has a target of opening 15 new clinics every year.
MUMBAI: The Mumbai-based Marico Ltd will invest Rs 175 crore over the next three years to expand its diversified business and to construct a new corporate headquarters at Kalina in Mumbai.
The Rs 1,371-crore FMCG major wants to grow its global business to Rs 1,500 crore during FY08
Marico will invest Rs 65 crore to expand its Kaya skin care clinics. The company will spend Rs 1.5 crore on every clinic to be opened in the country and overseas. It has a target of opening 15 new clinics every year and expects the business to contribute over Rs 100 crore in revenues by 2010, the source added.
Milind Sarwate, chief HR & strategy, Marico Ltd, said, “After consolidation, we plan to open more than dozen Kaya clinics this year itself.”
The company has set a target of Rs 2,000 crore revenues in FY09 through inorganic as well as organic growth. The company is eyeing a few overseas brands or companies. Chaitanya Deshpande, head-strategy, M&A and investor relations told DNA Money, “We are looking for inorganic growth both in country and overseas.”
Meanwhile, the Sweekar brand is being de-focused due to its low contribution to profitability as net profit margin is a mere 2%. Sources said the brand for likely to be sold to Ruchi Soya. But, Deshpande categorically denied any such move. There is a possibility that the brand will be sold at reasonable valuations.
About Marico’s new corporate office, Deshpande said, “We are building our new corporate headquarters in Kalina with an investment of Rs 70 crore. The land has been finalised. We expect to move into the new location by FY09.”
Analysts said international business is likely to be a significant growth driver in FY07- FY09 for Marico. The company’s international business has expanded primarily through acquisitions.
Bangladesh, Middle East and other SAARC countries have contributed to the good numbers the international business has shown in recent quarters. The contribution of these regions has grown from 7% of revenues in FY02 to 10% in FY06.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}