Marico Bangladesh targets innovation and expansion to stay competitive

In a recent interview with The Financial Express, Sumitava Basu, the country head of Marico Bangladesh Limited, delved into the company’s strategies, innovations, and future outlook in Bangladesh’s rapidly evolving consumer goods industry.

Marico Bangladesh is adopting a multifaceted approach to strengthening its market presence and competitiveness in the consumer goods industry. Basu emphasised the company’s commitment to continuous innovation and expansion across various segments such as hair care, skin care, edible oils, male grooming, and baby care. By diversifying its product portfolio and focusing on understanding and meeting the evolving preferences of Bangladeshi consumers, Marico aims to maintain market leadership.

Responding to changing consumer preferences, Marico has introduced a range of innovative products in hair care, male grooming, skincare, and baby care segments. Basu highlighted offerings like Parachute Advansed Beliphool and Aloe Vera enriched coconut hair oils, Studio X, Beardo, Parachute SkinPure, and Parachute Just for Baby, which cater to specific consumer needs effectively.

Geographical expansion and market diversification are key strategies for Marico Bangladesh’s sustained growth. Basu explained the company’s investments in the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN), which serves as a strategic base for local expansion and exporting goods to South Asian and Middle Eastern markets. Leveraging Bangladesh’s manufacturing capabilities, Marico aims to tap into international markets effectively.

With the increasing importance of digital channels, Marico Bangladesh is actively pursuing digital transformation initiatives to enhance operational efficiency, consumer engagement, and sales growth. The company uses sales analytics to boost sales productivity, and optimise resource allocation. Over the last few years, it has aggressively improved salience in e-commerce platforms. Recognised for its digital marketing efforts, Marico has received awards for campaigns like G for Glo On and Parachute Just for Baby, showcasing its effective use of digital channels.

Furthermore, Marico intends to enhance channel partner capability, leverage predictive analytics for a healthy distributor network, and expand its rural footprint by utilising technologies like geo-clustering to identify growth opportunities and optimise resource utilisation.

Marico Bangladesh’s investment in the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) reaffirms its commitment towards the ‘Made in Bangladesh’ philosophy by enhancing the country’s manufacturing capabilities and supporting local production. The company has earmarked Tk 2.2 billion to set up its third manufacturing unit in this special economic zone (SEZ), which will enhance Marico Bangladesh’s manufacturing capability for producing new products. This move not only supports the domestic economy but also promotes the ‘Made in Bangladesh’ brand in international markets. The project is operational, with the factory having commenced production in August 2023.

Basu mentioned in the interview, approximately 99 per cent of Marico Bangladesh’s product portfolio is produced locally, highlighting its commitment to the ‘Made in Bangladesh’ initiative. Basu mentioned that the company primarily exports its products to regions such as Nepal, Vietnam, and the Middle East.

Marico Bangladesh plays a crucial role in further elevating Bangladesh’s status as a manufacturing powerhouse in South Asia. Basu emphasised the company’s contribution to job creation, economic development, and the government’s vision of industrialisation.

The company’s commitment to producing 99 per cent of its portfolio locally, coupled with its export operations to South-Asian and Middle Eastern markets, positions it as a key player in the region.

Furthermore, Marico’s initiatives resonate with the government’s vision of industrialisation, which aims to elevate living standards and meet sustainable development goals. By setting up its third manufacturing unit in one of the largest economic zones in South Asia, Marico is not only creating job opportunities but also enhancing the ‘Made in Bangladesh’ equity.

In terms of corporate sustainability, Marico Bangladesh prioritises waste management, water conservation, energy efficiency, responsible product practices, and sustainable sourcing. Basu highlighted the company’s CSR initiatives, including its involvement in the SWAPNO Program, which empowers ultra-poor women for economic growth and self-sufficiency.

The project has yielded impressive results since its inception, benefiting 588 women-headed households with formal employment and another 318 through local enterprise development projects, fostering significant sustainable economic growth in the targeted regions. Since 2022, the number of graduated households through the project is 12492. It is estimated that these, and numerous other activities undertaken by SWAPNO beneficiaries, have resulted in a financial contribution to the economy of over Tk 1.0 billion, highlighting the substantial potential for income generation and economic resilience through these new skills.

Looking towards the future, Marico Bangladesh envisions becoming the most preferred brand in its operating segments, according to Basu. He emphasised the company’s focus on distribution excellence, capability enhancement, talent development, and a strong organisational culture to drive sustainable growth and success.