Brands
Q1-2016: Marico marketing spends at Rs 197.52 crore
BENGALURU:Indian consumer products in beauty and wellness space company Marico Limited (Marico) spent 2.8 per cent more towards advertisement and sales promotion (ASP, marketing spends) during the quarter ended 30 June, 2015 (Q1-2016) at Rs 197.52 crore (11.1 per cent of total income from operations or TIO) as compared to the Rs 192.18 crore (11.8 per cent of TIO) in Q1-2015 and was 44 per cent more than the Rs 137.15 crore (11.2 per cent of TIO) in the immediate trailing quarter.
Notes: 100,00,000=100 Lakhs = 1 crore = 10 million
During a 14 quarter period starting Q4-2012 until the current quarter, the company reported record TIO for the current quarter at Rs 1783.22 crore, which was 9.9 per cent higher YoY than the Rs 1623.13 crore in Q1-2015 and 45.4 per cent more than the Rs 1226.25 crore in the immediate trailing quarter (Ref Fig B below). The company says that its topline growth was driven by sixper cent volume growth in India leading to overall volume growth of fiveper cent. Marico’s Domestic business recorded a value growth of 12 per cent while the International business posted a growth of fourper cent.
Company speak
Marico in its Q1-2016 earnings release says that market share gains continue in approximately 80 per cent of its portfolio; almost the entire domestic portfolio gained share. Marico’s FMCG business in India achieved a turnover of RS 1,428 crore ($227 million) during the quarter, a growth of about 12 period over Q1-2015. The Business continues to gain market share in more than 95 per centof the portfolio reveals the company.
The company says that it has seen healthy volume growth in key categories in India: Parachute Rigids- eightper cent and Value Added Hair Oils (VAHO) 14 per cent with a continued premiumization in VAHO in India with higher share gain in value (230 bps) as compared to volume (124 bps). The company has four Prototypes in the market – three in Value Added Hair Oils and one in Leave-in Conditioners to fuel premiumization of hair nourishment portfolio. These prototypes will be scaled up based on prototype results.
Marketing spends
Marketing spends in Q1-2016 have been the highest during the fourteen quarter period under consideration in terms of absolute rupees. In terms of percentage of TIO, ASP was highest in Q3-2013 at 14.1 per cent of TIO (Rs 157.82 crore). While in absolute rupees, ASP shows a linearly increasing trend during the 14 quarters under consideration, in terms of percentage TIO, the trend declines linearly during the same period. Please refer to Figs. A and A-1 below.
Profit after Tax
Marico’s TIO numbers have been mentioned above. During the period under consideration in this report, the company has reported the highest profit after tax (PAT) in the current quarter at Rs 237.83 crore (13.3 per cent of TIO), which was 28.4 per cent more than the Rs 185.28 crore (11.4 per cent of TIO) in Q1-2015 and was more than double (2.16 times) the Rs 110.04 crore (nineper cent of TIO) in Q4-2015.
Brands
Godrej clarifies ‘GI’ identifier after logo similarity debate
Says GI is not a logo, will not replace Godrej signature across products.
MUMBAI: In a branding storm where shapes did the talking, Godrej is now spelling things out. Godrej Industries Group (GIG) has issued a clarification on its newly introduced ‘GI’ identifier, addressing questions around its purpose and design following a wave of online criticism. At the centre of the debate were two concerns: whether the new mark replaces the long-standing Godrej logo, and whether its geometric design mirrors other corporate identities.
The company has drawn a clear line. The Godrej signature logo, it said, remains unchanged and continues to be the sole logo across all consumer-facing products and services. The ‘GI’ mark, by contrast, is not a logo but a corporate group identifier intended for use alongside the Godrej signature or company name, and aimed at stakeholders such as investors, media and talent rather than consumers.
The need for such a distinction stems from the 2024 restructuring of the broader Godrej Group into two separate business entities. With both continuing to operate under the same Godrej name and signature, the identifier is positioned as a way to differentiate the Godrej Industries Group at a corporate level.
The rollout, however, triggered a broader conversation on design originality. Critics pointed to similarities between the GI mark’s geometric composition and logos used by companies globally, raising questions about distinctiveness.
Responding to this, GIG said its intellectual property and legal review found that such overlaps are common in minimalist, geometry-led design systems. Basic forms such as circles and rectangles appear across dozens of brand identities worldwide, the company noted.
It added that the identifier emerged from an extensive design process and was chosen for its simplicity, allowing it to sit alongside the Godrej signature without competing visually. While acknowledging that elemental shapes may appear less distinctive in isolation, the group emphasised that the mark is part of a broader identity system that includes a custom typeface, sonic branding and other proprietary elements.
Following legal and ethical assessments, the company said it found no impediment to using the identifier, reiterating that the GI mark is a corporate tool not a consumer-facing symbol.
In short, the logo isn’t changing but the conversation around it certainly has.
