Marico’s Parachute oil – a plastic container case study

Marico’s Harsh Mariwala gets Lifetime Achievement Award

457
plastic
Harsh Mariwala, chairman and founder of Marico Industries, speaking at the summit

At the recently concluded 6th Injection, Blow, Roto & PET Moulding International Summit 2018, held in Mumbai on 5-6 July and organized by ElitePlus, Harsh Mariwala, chairman and founder Marico Industries, was bestowed with the Lifetime Achievement Award for his contribution to business and to the plastic industry.

Marico is one of India’s leading companies in the FMCG sector and owns some popular brands such as Parachute, Saffola, Kaya, Set Wet, Nihar, Mediker and Revive, to name just a few. Parachute is the flagship brand of Marico which consists of edible grade coconut oil.  Mariwala joined Bombay Oil Industries Ltd., his family’s commodities trading business, after finishing college from Mumbai’s Sydenham College. Gradually, he moved out of family business and founded his own firm under the name Marico, which pioneered the shift from tin to plastic packaging for coconut oil in the 1980s.

In his acceptance speech delivered during the ElitePlus seminar, Mariwala shared an episode in the company’s growth history when Marico was able to change the game in oil business by ushering in a switch where tin containers were gradually replaced by plastic ones. He said that when Marico first pitched the idea of plastic container for coconut oil, there was severe resistance from retailers. “Initially there was a lot of resistance and scepticism, but we were convinced about the idea,” he said.

Marico 2 2
Marico’s Parachute coconut oil

To find the reason for such stiff resistance, Marico interacted with the retailers and found out that the idea of plastic containers for oil was pitched by another company a few years ago. However, the experience was not good for the retailers as these squarish-shaped containers were damaged by rats, leading to oil spillage and damage to their shops. With this input from retailers, Marico went back to the drawing board and soon launched a round-shaped plastic container, which had no edges for rats to cling on. Also, the container was designed in such a way that rats could not smell the oil. Marico then experimented by putting the container in a cage full of rats and took photographs to show to the retailers that Marico’s plastic containers cannot be damaged by these rodents. The company again met with the retailers and assured them about the safety of the plastic containers and even guaranteed that if any damages take place, Marico would compensate them.
“The rest, as they say, is history. We gradually created awareness about the advantages of plastic containers and within a short period of time, the entire market shifted from tin to plastic,” he said.

Marico then ventured abroad and found enormous success in Bangladesh. The company implemented everything that it did in India in Bangladesh as well. Within a decade of entering the country, Marico had more than 80% share in the Bangladeshi market.

“So, plastic has played a very important role in shaping the fortunes of Marico,” he stated.

Packaging South Asia — resilient, growing and impactful — daily, monthly — always responsive

The multi-channel B2B in print and digital 17-year-old platform matches the industry’s growth trajectory. The Indian, South Asian, Southeast Asian, and Middle East packaging industries are looking beyond the resilience of the past three years. They are resuming capacity expansion and diversification, with high technology and automation in new plants and projects.

As we present our 2024 publishing plan, India’s real GDP growth for the financial year ending 31 March 2024 will exceed 6%. The packaging industry growth will match the GDP growth in volume terms and surpass it by at least 3% in terms of nominal growth allowing for price inflation in energy, raw materials, consumables, and capital equipment.

The capacity for flexible film manufacturing in India increased by 45% over the past four years. With orders in place, we expect another 20% capacity addition in 2024 and 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels are grown similarly. As the consumption story returns over the next six months, we expect demand to return and exceed the growth trajectory of previous years. The numbers are positive for most of the economies in the region – and as shown by our analytics, our platform increasingly reaches and influences these.

For responsible and sustainable packaging, with its attendant regulations and compliances, there is significant headroom to grow in India and the region. Our coverage includes the entire packaging supply chain – from concept to shelf and to waste collection, sorting, and recycling.

We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers. This is a large and complex canvas – the only thing that can work is your agile thinking and innovation together with our continuous learning and persistence.

The coming year looks to be an up year in this region, and this is the right time to plan your participation and marketing communication – in our rich and highly targeted business platform with human resources on the ground. Share your thoughts and plans to inspire and mobilize our editorial and advertising teams!

For editorial info@ippgroup.in — for advertisement ads1@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna (25 October 2023)

Subscribe Now
unnamed 1

NEWSLETTER

Subscribe to our Newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here