Make a Difference

make a difference

Sustainability Report 2013-14 make a difference

Our purpose has defined our reason to exist; we have always believed that we exist to benefit the entire ecosystem of which we are an integral part. We believe we have the responsibility of creating and distributing value to all our stakeholders - be it our consumers, shareholders, associates, employees or the community at large. It is this desire to make a difference, to care and to nurture, that enables all the stakeholders in our business ecosystem to blossom to their full potential. “When we invoke a strong sense of higher purpose in our work, it enhances the degree of engagement among all stakeholders which in turn drives innovation and commitment. Marico has met consumer needs, built strong relationships, innovated new ways of doing things and achieved great business results while continuing to contribute to the wellbeing of the society, through focus on our purpose and by steadfastly practicing our values.”

HARSH MARIWALA

CHAIRMAN MARICO PURPOSE & SUSTAINABILITY PHILOSOPHY

Marico believes that it belongs to an interdependent ecosystem comprising Shareholders, Consumers, Associates, Employees, Environment and Society. Sustainable Profitable Growth goes hand in hand with the sustainable progress of the entire ecosystem.

The Company believes that The business of business is more difference to the other members of economic value and social value are than business: The pursuit of profits its environment to realize their true interlinked. A firm creates economic is not at odds with the pursuit of potential. value by creating social value – by purpose. It is the pursuit of a playing a role in making a difference purpose that helps realize the true In every sphere of activity, to the lives of people. Furthermore, potential of all participants of the Mariconians seek new and a firm cannot do this in isolation; it ecosystem. compelling value propositions to needs the support and participation each stakeholder and bring them of other constituents of the Marico endeavours to be a together in unique ways that unlock ecosystem. Sustainability comes purpose-focused organization, value for the whole as well as its from win-win partnerships in the which achieves sustainable parts. This has fuelled Marico’s ecosystem. profitable growth by making a journey of growth and evolution since its inception. “Marico is at a point of inﬂection today, poised to enter the next orbit of growth. Seizing this opportunity also requires us to renew our commitment towards all our stakeholders who have been an integral part of Marico’s journey so far and will continue to be our reason for success. A win-win partnership with all stakeholders is the biggest catalyst for long term sustainable growth.”

SAUGATA GUPTA

MANAGING DIRECTOR & CEO CONSUMERS

SOCIETY ASSOCIATES

PURPOSE

ENVIRONMENT EMPLOYEES

SHARE HOLDERS MARICO’S SUSTAINABILITY INITIATIVES ACROSS STAKEHOLDERS.

consumers shareholders associates

01 11 19 environmentemployees society

27 35 43 consumers “Brands exist in society. And like any responsible citizen, brands need to contribute to the wellbeing of society. This is mutually beneficial because as society develops, brands develop and because the brand purpose is more than just selling products, it fosters trust and builds equity. Thus creating a sustainable cycle of growth and trust.”

SAMEER SATPATHY

CHIEF MARKETING OFFICER Consumers desire a partnership, they don’t want a mere transaction. An organization has to think about consumers to become big. This thought is embedded in the core values of Marico.

This core belief has allowed Marico to create brands that consumers love and can’t live without. Testimony to this is the fact that over 90% of Marico’s portfolio consists of brands that are market leaders in their categories and in most cases have enjoyed that position for years.

This relationship of trust and constantly searches for unmet a strong ethical code and warmth with consumers is needs, insights and innovative a high bar for excellence. made possible by a deep offerings that can cement the Here are a few examples of restlessness within the bond with the consumers even how Marico brands created Company to add value to the further. And these efforts are enriching partnerships with consumers’ life in ways that boosted by the organizational their consumer franchise. are novel and delightful. Marico values of Consumer Centricity,

03 WhenWhen you you delight delight consumers, cosumer, theythey rewardreward you with leadership

Brand Category Indicative Market Rank Share

Parachute/Nihar Coconut Oil (India) ~ 56% 1

Parachute Coconut Oil (Bangladesh) ~84% 1

Saffola Super Premium Refined Edible Oils ~55% 1

Saffola Oats ~14% 2

Parachute Advansed/ Nihar Naturals/ Hair Oils ~28% 1

Hair & Care

X-Men Male Shampoos (Vietnam) ~39% 1

Fiancée/HairCode Hair Styling (Egypt) ~52% 1

Set Wet/Parachute Advansed Hair Gels & Creams (India) ~33% 1 Aftershower

Livon/Silk & Shine Post Wash Hair Conditioner ~82% 1

Set Wet/Zatak Male Deodorants ~5% 5 Parachute – Packaging Innovations

Parachute has been making Over the past decade, the pure coconut oil available in the brand Parachute Advansed country for decades and has has also provided multiple pioneered in the shift from tins product innovations that meet to HDPE packs. Today, almost consumer needs in a unique every third household in India way. It is no wonder then that uses Parachute. This was made Parachute regularly features possible by various packaging among the strongest brands in innovations. the country.

Saffola – Winning Hearts by empowering consumers to heal their Hearts For over two decades, Saffola has been playing a pioneering role in leading the cause of generating awareness and motivation for lifestyle changes. This is among the most critical health concerns in India with more people dying of Coronary Heart Disease than of any other cause.

Four Indians die every Novel Partnerships across Scale of Impact minute of a heart related the ecosystem problem - Saffola’s mission Over the years, Saffola has is to reduce this statistic. Over the years, the Saffola reached out to millions across Healthy Heart Foundation has the country via large scale mass Saffola does this by offering taken the lead role in bringing media awareness programs, innovative products that together all the stakeholders helped over 100,000 people incorporate the best that in this cause, be it the media, over 90 cities with diagnostic science has to offer, by creating government, NGOs, hospitals, check-ups and pioneered the awareness for the problem and doctors, private health service First Dial, a dietician service and by providing encouragement providers and citizen groups the ‘Heart Age Finder’ in India. and support, so that citizens – perhaps among the rare Today Saffola is among the can take concrete steps to occasions where such a synergy most awarded and rewarded adopt a healthier lifestyle. has been achieved across a brands in India – by consumers diverse set of stakeholders. and the industry.

07 Nihar – Doing Good is the path to Leadership

Nihar Shanti Amla established and women, Nihar converted This innovation had an education as a purpose of the an entire village in UP into a overwhelming response with brand and contributes 2% of school. more than 1.4 lakh participants its sales towards children’s benefitting from it. education. It has partnered with The brand took this cause CRY on 19 live projects across further and in partnership Nihar is a unique case where 10 states in India to impact with CRY launched India’s ‘doing good’ for society also 36,058 children in the first first series of mobile-based propelled the brand towards year itself. To inspire children teaching modules for children. market share gains. Safeguard and Promote Consumer Interest

Marico believes in taking Industry of India (ASSOCHAM), policy for counterfeiting. the initiative in advocating Advertising Standard Council The Company has taken consumer interest by taking up of India (ASCI) etc., to promote several actions against causes with other participants and advocate responsible counterfeiters by making in the ecosystem, including the business practices. Some of complaints to the regulators. the issues on which Marico has enforcement agencies played a role in advocacy with and seizing counterfeit Several members of the Regulatory Authorities are: products. leadership team across the 3. The Company has taken Company engage on a regular 1. Hygienic packing of edible action on the collection of basis with various government oil in order to improve the plastic waste from scrap authorities and industry bodies level of responsibility of the vendors. This not only has such as the Federation of Indian manufacturers, instead of a positive impact as an Chamber of Commerce and edible oil being sold in anti-counterfeit measure, Industry (FICCI), Associated loose form. but also promotes re-use Chambers of Commerce and 2. Marico has zero tolerance of plastic. Sustainability and the Consumer Franchise It is no surprise then that most minds and hearts create not at the heart of a sustainable Marico brands are not just just enduring memories and business lies an enduring market leaders but thought associations but also a rock solid consumer relationship. leaders as well. The equities business, immune to volatility, that Marico owns in consumer’s uncertainty and change. For

09 shareholders “By continuously searching for growth opportunities and investing in portfolios of the future, we deliver sustainable growth for our investors. In addition, our strict adherence to high standards of corporate governance and open and transparent communiation, all come together to deliver healthy returns to our shareholders.”

VIVEK KARVE

CHIEF FINANCIAL OFFICER Marico believes that shareholders gain more when their interests align with the interests of all other stakeholder groups. The Company has consistently demonstrated that this is indeed true, that making the world better can make the shareholders wealthier.

This route to creating value is far more sustainable and protects the shareholder’s wealth far better than ﬁnding short term opportunities in the environment which may bring gains in the near term but harm the ﬁrm and its shareholders in the future.

The Company has demonstrated a consistent track record of growth, with FMCG revenue and proﬁt growing at a compounded annual growth rate of 16% and 21% respectively in the last 5 years. The total returns to shareholders from the time of listing till date is at 24% CAGR.

13 Sustainable Wealth Creation

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MARICO FMCG Index Emerging Market MNC Marico has been one of the the eight Indian ﬁrms with the and a widening International most consistent value creators potential of being the emerging footprint across developing in the past decade and has market Global Challenger; a and emerging markets of Asia beaten the FMCG Index. S&P journey it has started backed and Africa. identiﬁed Marico as one of by a solid business in India Business with Strong Moats

Marico’s brands occupy part of its portfolio consists demonstrated strong immunity leadership positions in over of products which operate in to MNC competition as well as 90% of its portfolio and categories with a strong habit to business cycles, making it a enjoy a strong competitive and loyalty and minimal risk of durable value creator. advantage and barriers to obsolescence. Over the past entry for competition. A large two decades, the Company has

Investor Relations Philosophy

The Company has always benchmark for its peers. These Consumer Sector across Asia followed the guiding principle high standards compel the in the 2012 Asia Investor of open and transparent Company to make reasonable Relations Perception Study. communication while dealing promises to the investors in The Company was also ranked with its shareholders. Marico terms of business performance No. 1 in the Euro Money Asia’s has set high standards of and then strive to over deliver. Best Managed Companies. Corporate Governance and Business Ethics in the Marico’s investor relations industry and is considered a team was ranked 2nd in the

15 Investor Friendly Over the years, the Company has addressed a number of capital market concerns which has in turn helped its proﬁtability and growth journey. In mid-90s when the Company got listed, it faced market concerns regarding low stock liquidity. Marico issued bonus shares twice in 2002 and split the stock 10:1 in 2004 to address this issue which beneﬁtted the retail investors. High Standards of Professionalism and Ethics Through continuous efforts, Marico has succeeded in transforming a local, low margin oil-based company into a multi-country higher margin consumer goods company. This strategic focus and value centric culture is embedded in the Investor Relations function of the Company which constantly seeks feedback from investors to better deliver value to them. Investor feedback is also discussed with senior management and the Board. Over the years, some of the measures taken to address market perceptions are as below:

1. Transferred brands 3. Constituted a Board with Parachute and Saffola 75% independent non- from Bombay Oil executive directors. Industries to Marico Ltd. 4. Marico management 2. Ensured no related party comprises talent which is transactions between among the best in its Marico Ltd. and other markets and leaders with Mariwala Group an impeccable track companies. record. The Company’s dividend distribution policy is aimed at sharing its prosperity with its shareholders, through a formal earmarking / disbursement of proﬁts to shareholders.

Keeping in mind the increase to 350% as compared to 100% in the proﬁts made by the during FY13. This includes Company along with its future a special one-time Silver acquisition plans and in an Jubilee dividend of 175% to endeavour to maximize the commemorate 25 years since returns to its shareholders, the incorporation. Going forward, Company has been increasing the Company will endeavour its dividend pay-out over the to improve the dividend pay- last few years. In FY14, Marico out further depending on the increased its dividend pay-out acquisition pipeline.

17 associates “By maximizing our associate’s potential across the supply chain - from farmers to suppliers, packaging developers, distributors and retailers - we create healthy partnerships that improve the growth and sustainability of our businesses, yielding higher proﬁts.”

JITENDRA MAHAJAN

CHIEF SUPPLY CHAIN OFFICER Copra Farmers

India is the 3rd largest producer of copra in the world with more than 7.5 lakh farmers engaged in coconut farming. Marico buys 1 in every 10 coconuts produced in the country. Copra Collection centres was initiated by Marico in 2003 to procure copra directly from Farmers & Converters in Tamil Nadu and Kerala. Over the years, the number of Collection centres has increased up to 27 which contribute a signiﬁcant share of the Company’s total copra requirement. These centres not only provide supply assurance to the Company but also a number of beneﬁts to the farmers such as:

4OW`>`WQW\U(>`]Qc`S[S\b 0cgW\U/aacÒ\QS(;O`WQ] price at collection centres provides buying assurance are fixed based on to farmers and small prevailing market price on converters throughout the day. Once material the year, irrespective of reaches the centre, quality market conditions. check and payment is done on the spot and :]gOZbg^`]UÒ[a(;O`WQ] in front of the farmer to has been conducting ensure complete loyalty programs at transparency. This is all its collection centres highly beneficial to in Kerala through which farmers who earlier used farmers are provided to sell to local traders non-monetary incentives based on the arbitrary over and above the prices fixed by them. copra price.

21 In order to develop long term Marico plays a vital catalytic copra availability, the Company sustainable farming sources, role in cluster development has also de-risked itself from Marico endeavours to train program run by Coconut supply uncertainties. farmers on best farming Development Board which practices. Marico organized touches approximately 8,000 Marico organizes an annual training programs with industry farmers across 63 cluster reward program ‘Keraratna’, for experts, educating farmers on locations. In this program, the farmers associated with Marico quality standards, inspection Marico team helps farmers Copra Collection centres, to methods, storage of copra and adopt the best practices as well motivate small scale farmers to latest developments in farming/ as avail benefits under central stay active in the market and conversion processes, enabling government assistance towards keep away from speculation, them to get a good price for yield improvement such as free thus reducing financial losses. their produce. Last year, Marico fertilizers and intercrops. The This initiative also aids in trained 400 farmers through program has helped improve creating a long-term mutually its 13 centres towards model productivity and income of beneficial relationship with farm practices. farmers by c.15%. By improving the farmers. Safflower Farmers

fertilisers and pesticides, free of cost , and were also given buying assurance for their produce.

Marico also regularly works with prominent seed companies to ensure availability of high yielding seed varieties to farmers at competitive costs.

Marico also partnered with Parbhani University to develop a handbook on recommended practices in safflower farming. The Company distributed these booklets among 1,000 farmers across Maharashtra. Marico also worked with Akola University on research in developing a Marico is the largest buyer of Marico has entered into a farmer-friendly solution to the safflower in India. Safflower is Public Private Partnership Gujhia Weevil, a major pest a sturdy crop grown mainly in arrangement with Government in the Vidarbha region which west India. ‘Farmer First’ was of Maharashtra wherein the destroys large quantities of launched in safflower growing Company has covered 1,250 safflower crops. Subsequently, belts in June 2012, with the acres of Safflower area and 575 an All India Radio platform was vision to achieve socially small and marginal farmers. used to telecast recommended responsible growth by keeping In this arrangement, farmers preventive practices across 18 farmers as the pivot. were given all inputs i.e seeds, districts in Maharashtra.

23 Marico has engaged 6,632 1. Buying price guarantee farmers for contract farming of safﬂower seeds over 2. Accurate electronic 26,000 acres. Marico provides weightage in Marico’s knowhow and troubleshooting buying centres support throughout the crop cycle to assist farmers get better 3. No deductions yield apart from providing risk free assurance on prices and 4. Same day cash payment quantity. Contract farming model leads to expansion in 5. Technical guidance acreage through: throughout the crop cycle

“Marico’s Contract Farming was a boon to us! We got rate guarantee & technical guidance throughout the crop cycle.”

- Chudaman Patil (Maharashtra)

The Company also encourages farmers to adopt the practice of briquetting, which helps improve farmer realization and also provides a greener fuel. Distributors

Marico was a pioneer in leveraging IT in sales and distribution in India. The Company introduced Personal Digital Assistants (PDA), a unique hand-held device, which enabled simpliﬁcation of order management for its Direct Sales Representatives (DSR). The device improves the quality of a sales call by guiding the DSR in order taking and reducing the order to bill cycle time. The Marico IT team also enabled other multiple functions into the PDA such as route formation, outlet listing and classiﬁcation, geo tagging and measurement of retailer service levels. Optimization of the DSR’s sales call not only helps the Company expand its portfolio reach but also improves the distributor’s Return on Investment. PDAs were extended to the rural DSRs in FY14.

Marico’s sales team strives to 1. Optimizes distributor function on a Daily Distributor investment Replenishment (DDR) model. 2. Improves stock freshness One of the key enablers of DDR on the shelf is the seamless integration of IT 3. Improves retailer service in Marico’s sales force. 4. Reduces stock-outs 5. Improves distributor Some of the key beneﬁts of the retention Daily Distributor Replenishment model are:

25 environment “A business and the environment in which it operates are closely linked to each other. Hence, we continuously endeavour to be in harmony with nature to contribute to a sustainable growth of our planet by reducing the environmental impact at all stages of our product life cycle from development and design, procurement, production and logistics, sales to waste and recycling.”

DR. SUDHAKAR MHASKAR

CHIEF TECHNOLOGY OFFICER Climate change, global warming and environmental degradation pose grave challenges to the society. Marico believes in taking the lead and setting an example of how business goals may be pursued while caring for the Planet.

Marico’s Environment policy manufacturing units adopt ISO 14000 requirements. The has been deployed at all world class standards towards Company has always invested manufacturing locations of environment management in environment management Marico and constant efforts and are ISO 14000 certiﬁed. infrastructure to keep all the are taken to spread awareness As a part of these standards, statutory parameters within about the policy as well as to a risk assessment is done permissible limits set by State enhance member commitment continuously and such risks and Central Pollution Control towards it through various are mitigated on an on-going Boards. programs such as Environment basis. Marico adopts stringent Day, Workshops and environment management Training Programs. Marico’s standards as governed by

29 Reducing Plastic Usage

The Company continuously Marico sells over 1 billion blue Marico packaging is 7% lighter works on newer technologies bottles of Parachute coconut oil (bottles) and 2% lighter (caps) and opportunities to reduce every year. Through continuous compared to the nearest consumption of plastic innovation, Parachute bottles benchmark. With similar for its packaging material use the least plastic in the efﬁciencies across the portfolio, requirement. This year through industry. In other words, in FY 14 alone, Parachute saved multiple design initiatives, the Parachute rigid bottles have around 350 MT in HDPE & 15 Company has saved 60 MT of the lowest packaging material/ MT in PP. HDPE / LDPE by reducing unit gram packed in its category weight of packaging materials. and serves as a benchmark. Reduced Usage of Polyvinyl Chloride (PVC)

Marico has replaced usage of PVC with Polyethylene Terephthalate (PET). In FY14, PVC usage was less than 2% of total plastic usage.

Metric Tonne FY14

Total PVC 209

Total PET 3,427

Total HDPE 7,504

The following are the by the chemical output 3. The recycling process of advantages of using PET over of PVC, and the product PET has minimal impact PVC: can be changed or on the environment and damaged over long term is very similar to the 1. Unlike PET, PVC breaks exposure to PVC. process of recycling down over time regardless 2. When burned, PVC emits paper. No harmful of sun exposure and hydrogen chloride and gases are emitted, leaches chemical onto dioxin gases that can be and the PET containers whatever it is in contact very harmful to the can be completely remade with. Since PVC can add environment. Compared into more PET containers, chemicals to everything it to that, PET can be eliminating high levels comes into contact with, recycled and remade into of material loss through it is not a safe option for plastic containers or the process. storing edibles. Even plastic items and also products that are not into clothing. edible may be harmed

31 Transportation Optimization

Marico continuously explores light weight food products to goods. 86% of the Company’s opportunities of optimizing reduce the total transportation finished goods primary transportation by adopting distance by almost 2 Lakh transportation uses multi-axle more efficient modes or vehicle km resulting in lower fuel vehicles. Wherever feasible, the types. In FY14, Marico adopted consumption. Marico has put Company uses railways for bulk customized multi-axle (high in place a process to increase transportation. Almost 40% volume carrying capacity) share of multi-axle trucks for of safflower oil is transported trucks for transportation of its transportation of finished using the rail network. Energy Management Marico has converted most of its fossil fuel steam generation boilers to renewable biomass based boilers. The Company has used 94% of its fuel requirement through renewable fuels such as bio-mass briquettes, rice husk and bagasse in FY14 as against 59% in FY13.

Fuel type 2012-13 2013-14

Furnace Oil 3,671 931

Diesel 465 190

Fossil 4,136 1,121

Biomass 5,916 16,526

% of fossil fuel used 41% 6%

% of renewable fuel used 59% 94%

Marico has deployed ISO 50000 energy management standards in its unit in Himachal Pradesh and is certiﬁed on these standards for adopting best practices in energy conservation and performance monitoring processes. The Company encourages farmers to adopt the practice of biomass briquetting, which helps improve farmer realization and also provides a greener fuel. Biomass briquettes are made of agricultural waste and are a renewable source of energy that avoids adding fossil carbon to the atmosphere. Water Management

The Company has been able to achieve zero water discharge status for most of its manufacturing facilities. Marico ensures that the water undergoes efﬂuent treatment and is recycled by the units for alternative usage such as gardening and other process requirements. All the factories have a water harvesting system installed on the premises.

33 employees “Each new opportunity demands the best of you, and every accomplishment continues to amaze you of your own potential. Marico provides a work culture of challenge, enrichment and empowerment that encourages each one to take complete ownership of their role.”

ASHUTOSH TELANG

CHIEF HUMAN RESOURCES OFFICER Marico facilitates, encourages, rewards and recognizes employees as the Company believes that its people are the key source of competitive advantage.

Marico’s Talent Value and fulfil the aspirations of Proposition (TVP) reflects Mariconians so that they can the significant offerings maximise their true potential to the organization has for its Make a Difference”. This is also members. Marico’s TVP is “to an anchor for talent acquisition continuously challenge, enrich and development processes. Code of conduct

In March 2014, Marico launched as well as create a work CoC: Ares of focus: its updated Code of Conduct environment that is conducive 1. Policy additions in the (CoC) worldwide, a revision to members and associates area of Information over the earlier CoC that was alike, based on the Company’s Security, IT Policy and launched in 2010. A strong need values and beliefs. Internet usage to have an updated CoC was felt 2. The Prevention of in the context of the changing Sexual Harassment (PoSH) business landscape, social and rules have been revised as regulatory environment and per the recent legislation Marico’s increased size and in India complexity of business. 3. Important committees have been updated The underlying philosophy like the CoC committee, of this code is to conduct the PoSH committee and business in an ethical manner Whistle Blower committee.

37 The Code covers all members of Marico and its subsidiaries at different locations.

Members have been provided many options to speak up fearlessly to report any violations of the CoC or share their concerns. Education sessions for all members are planned in the coming year to improve their understanding of the CoC.

Below is the snapshot of the number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in FY14:

No of complaints No of complaints Sr. No. Category filed during FY14 pending as on March’14

1 Child labour/forced labour/involuntary labour Nil Nil 2 Sexual Harassment Nil Nil 3 Discriminatory employment Nil Nil Member Well Being The innovative and humanistic The Company believes to create, enhance and enrich practices that Marico follows in that when the employees its members work experience. dealing with employees reﬂect are happy, they are its best The employee proﬁle of Marico a deep understanding of what brand ambassadors. Marico Limited is as below: people are looking for in their undertakes many initiatives work lives today.

Total number of Employees 1,938

Temporary/Contractual/Casual employees 692*

Permanent Women Employees 154

Permanent Employees with disabilities 2

* On a daily average basis in FY14 Community Well Being Member wellness is an essential back to the society. The week supplies and clothes to street component of the HR practices saw active participation from children and orphans, medical at Marico; it positively impacts members across all ofﬁce camps, eye donation camps, employee engagement and also locations in India. Some campaigns to raise awareness lends to a happier and a more activities conducted this about water consumption etc. productive workforce. This year include fulﬁlling wishes One of the key initiatives at year we saw various wellness of underprivileged children, Poanta plant taken last year initiatives at Marico designed blood donation camps and was ‘Sakshar Beti, Sudradh to encourage members to feel distribution drives (stationery, Samaj’ - An initiative to impart more empowered in various books and old clothes). Career Awareness to girl aspects of their lives. children of contract labourers. There are various community Girl children along with their Marico has been participating building initiatives undertaken parents were given awareness in the Joy of Giving Week, at each Plant site of Marico about various career options since 2010, with the objective such as, donation to children available in order to enable of creating a platform to diagnosed with life threatening them to choose the right one. encourage members to give diseases, providing ration Health & Safety Well Being

Health camps were conducted For the second year in a over 200%, with 115 members across different locations in row, Marico participated in joining the event. More than India in which 450+ members Stepathlon, a unique mass half of these Stepathletes participated. A new health participation event that takes reported improvement in their newsletter series has also been place over 100 days, with ﬁtness levels. launched where health tips are the objective of promoting provided through a monthly a healthy lifestyle amongst A team of 35 members e-mail and health talks were its members. This year the participated in the 6 conducted for women. participation saw an increase of kilometer Dream Run at the

39 Mumbai Standard Chartered own safety. Other safety The details of coverage of such Marathon. Members in Delhi and skill upgradation training trainings in FY14 are given also participated in the Delhi is provided every year to below: leg of the Standard Chartered members. marathon.

On International Women’s Type of Employee % Trained

Day, Marico organised a self Permanent employees 72% defence session for all its Permanent women employees 36% women members in Mumbai, Casual/Temporary/Contractual employees 78% with the aim of empowering Employees with disability 100% them to take charge of their Financial Well Being

Certified financial advisors their personal finances for long the corporate office which conducted financial wellness term financial security and facilitated members to apply workshops and webinars to wealth creation. An Aadhar for Aadhar cards for themselves equip members to manage Camp was also organized in and their family members. Emotional Well Being Marico’s Member Assistance offered in India. Trained They also explained how the Program (MAP) is aimed at counsellors from Marico’s MAP MAP service works to support extending emotional support partner conducted sessions to members while maintaining and assistance to members and equip supervisors to identify complete confidentiality of their immediate families when in signs of stress and understand member concerns. need. The program is currently member concerns better. Well Being initiatives for Marico Women Marico Mothers policy With the philosophy to empower working mothers to effectively integrate their careers and family life, Marico introduced the Mothers policy in May 2013. This policy is an initiative to support working mothers during the challenging phase of managing the dual roles of motherhood and a career. To equip supervisors and expectant and returning mothers to effectively manage this phase of a woman’s life, Marico launched two handbooks – one for Expectant and Returning mothers and another for their supervisors. The handbooks guide the supervisors and mothers on how to deal with various dilemmas, managing workload, planning for the member’s maternity leave and return to the office

41 society “Marico Innovation Foundation has always strived to foster direct impact within the social ecosystem through the application of innovation – both in thought and practice. The Social Innovation Acceleration Program plays the role of a catalyst within this very ecosystem. Through direct interventions, SIAP provides a platform to the social organization in its journey of acceleration and scale up.”

HARSH MARIWALA

CHAIRMAN The Marico Innovation Foundation (MIF) is a not-for-proﬁt organization established in 2003 to help business and social organizations enhance economic and social value using breakthrough innovations.

The mission of the Marico Innovation foundation is to foster Innovation in India and it uses a multipronged approach to promote innovation across the business and social sectors.

The Foundation works closely with social organizations, philanthropic institutions, social entrepreneurs and the social innovation ecosystem to nurture and implement ‘direct impact’ innovations to overcome systematic challenges Scaling up Innovations

The ﬂagship programme of innovation as a key tool to Eight organizations are under the Foundation, the Social multiply their impact and reach. SIAP out of which three Innovation Acceleration It is designed as a two-year have reached the end of the Programme (SIAP) is a prime programme, with Innovation acceleration process. initiative taken by MIF to help and Direct Impact being the social organizations apply two pillars that drive it.

45 Completed Acceleration process:

Yuva Parivartan – Leading Youth to Livelihood

A non-proﬁt organization set up in 1998, Yuva Parivartan aims at equipping school dropouts with vocational and life skills and connecting them with meaningful occupations.

The SIAP helped Yuva Parivartan develop two key innovations:

1. A unique ‘Mobile Camp’ was developed which could be taken to remote locations to train youth in familiar surroundings as against the traditional ‘ﬁxed camp’ model.

2. The Livelihood Yuva Parivartan has grown to impact 1.2 lakh youth in 2013-2014 Exchange Programme from 18,000 youth in 2010-2011. With a challenging target of scaling was then developed their impact to 650,000 youth in 2014-2015, Yuva Parivartan has to bridge the gap embarked upon an exciting journey of skill development in India. between unemployed youth and prospective employers. The Akshaya Patra Foundation - More than just happy meals

Founded to serve nutritious across 10 states. However, this SIAP facilitated the movement meals to underprivileged reach was only about 2% of the from the large centralized children to reduce the total population of children in kitchen model to the ‘Hub and instances of school dropouts, need of healthy mid-day meals Spoke’ model. A central service Akshaya Patra currently serves across India. ‘hub’ looks into procurement, 1.3 million children in India daily processing and storage of food supplies while smaller satellite kitchens, i.e. ‘spokes’ prepare the actual meal. This enables them to optimize cooking to consumption time, providing breakfast with lunch to students, optimizing costs and generates spare kitchen capacity to reach out to a wider section of society including senior citizens, migrant workers hospitals and so on.

The Akshaya Patra Foundation is now ﬁrmly in the driver’s seat to reach the target of serving 5 million children with nutritious mid-day meals by 2017-2018 from the current ﬁgure of 1.3 million children.

47 Fractal Microspin – In high cotton

Fractal Microspin began as a social initiative to bridge the gap between the textile industry and the fabric value chain with the ultimate aim to curb farmer suicides. A fragmented value chain had an adverse impact on weavers and cotton farmers and out of the need to address this very issue; Kannan Lakshminarayan, a serial entrepreneur developed the Microspin Machine and farmers secure better The Foundation also helped founded Microspin Machine margins and returns on Microspin identify ‘potential Works in 2011. their investment, by adopters’ who will set up and By utilizing the ‘Farm to Fabric’ cutting the intermediary run the micro spinning mills. model, the Microspin machine layers and the non-value SIAP helped Microspin re- enabled small cotton farmers added costs. orient its strategy in a market- to: driven manner, rather than one 3. The high quality led by grants and social sector 1. Convert cotton directly material produced by subsidies. With SIAP having into yarn in their very own these micro-spinning set the spindle in motion for backyards, rather than machines called “Crafted Microspin, cotton growers are selling to large YarnTM” commands a slowly transforming into yarn textile mills. 50-80% premium producers. Microspin has set compared to targets to grow its revenues 2. This ﬁnal yarn produced commoditized yarn. tenfold by 2017 and become was sold directly to one of the leaders in yarn potential buyers helping production by 2023. Currently undergoing Acceleration:

TARA Livelihood Academy Safe Harvest

TARA Livelihood Academy Established in 2009, Safe 2. Do consumer in-sighting (TLA) delivers age Harvest Private Limited to understand NPM appropriate training courses (SHPL) aims at curbing the produce adoption to the youth and equips uncontrolled and widespread behavior them with employability and application of pesticides in entrepreneurship skills to arrest agriculture and encouraging 3. Certiﬁcation for Zero label the growing unemployment farmers to grow ‘zero pesticide from QCI, Government issue in India. food’, thus increasing the of India affordability of safe food. Safe Prior to SIAP, TLA aimed at Harvest has been instrumental 4. Generate working capital training and placement of in increasing the income levels for procurement of approximately 5,400 youth of marginal farmers by 15-20% NPM produce through skills and training and at the same time reducing programmes and reach the impact on the environment. sustainable revenue of INR 1.6 crores in 2013-14. Prior to SIAP, SHPL aimed at SIAP implemented a change selling INR 1 crore worth of in approach from skills and Non Pesticide Managed (NPM) enterprise training to a focused produce via modern retail employment driven skill training outlets in 2013-14. and rural entrepreneurship development, creating an Goals after SIAP intervention: engine for growth in livelihoods across India. During the 24 1. To sell NPM produce month prototype-to-scale worth INR 8 crore in 2014 phase, TLA aims at reaching 15 and INR 27 crores 25,000 to 50,000 youth by in 2015-16 2015-16.

49 ERAM Scientific Solutions Envirofit India Aglakadam Aajeevika Academy With 59.4% of rural and 8.8% of With over 70% of India still urban India with no access to using traditional chullahs, Spearheading the career hygienic latrine facilities, Eram more than 900 million people development of the youth of Scientific Solutions (ESS) has are still at risk of indoor air Chhattisgarh affected by Left- invented a new product: pollution which leads to a host wing Extremism / Naxalism, eToilet – an automated, self- of pollution related ailments. Aglakadam is introducing these cleaning, electronic public Envirofit India has developed youth to the world of career toilet to alleviate the sanitation an improved biomass cook opportunities followed up with crisis in India. ESS has also stove that reduces smoke, vocational and professional skill developed the She Toilet, toxic emissions, fuel wood training. Aglakadam Aajeevika designed specifically for combustion and the time taken Academy has embarked upon a women users with customized to prepare a meal. challenging mission to help the women friendly features. youth stay away from Naxalism Prior to SIAP, Envirofit India by pursuing fruitful careers. Prior to SIAP, ESS aimed aimed at selling 1,200 cook Prior to SIAP, Aglakadam at installing 400 eToilets stoves across India in 2014-15. Aajeevika Academy helped through a range of 20,000 youth in Chhattisgarh government partnerships and SIAP will help Envirofit India to find employment. entrepreneurs. to enhance adoption of cook stoves by reaching out to 3.25 SIAP intervention will enable Through SIAP interventions, lakh households in 2014-15 and the Academy to help 200,000 ESS will target specific user 1 million households in 2015-16. youth in Chhattisgarh by 2015- groups such as colleges, 16 by bridging the gap between schools, hospitals, highways, education and livelihood villagers and tourist spaces to through effective skill-based install 15,000 eToilets by 2015- training and placements. 16 across six states in India. Innovation for India Awards 2014

The Innovation for India The 5th Edition of the Awards and Association for Democratic Awards is the biennial witnessed an overwhelming Reforms (ADR) in the Social recognition platform of the response with over 430 category. Marico Innovation Foundation nominations received across recognizing outstanding Business and Social sectors. The Foundation presented innovations from the business, the Global Game Changer social and public sector The winners of the Innovation Award to Dr. Radhakrishnan, organizations in India. Over for India Award 2014 were Chairman, Indian Space the past four Editions of the Zydex Industries, TATA Power Research Organisation (ISRO) Awards, over 40 innovations Delhi Distribution Ltd (TPDDL) for the stellar achievements have been awarded across the and RML (former Reuters of ISRO in the recent past and Business, Social and Public Market Light) in the Business for putting India on the global Services sectors. category and Khabar Lahariya space exploration map. Innowin

Innowin, India’s 1st magazine an excellent response and leading industry stalwarts who dedicated to innovation has feedback in terms of the chose to subscribe to this completed a year of publishing. content featured. Over 300 pioneering magazine. Over the past four editions, subscriptions have been the magazine has received already received. These include MIF Website

The Foundation’s website www.maricoinnovationfoundation.org features the latest news and updates on the various activities of the Marico Innovation Foundation.

51 conclusion

No business is an island – it form a part of an ecosystem a responsible fashion by is an integral part of society and are therefore inter- aligning the organization and knits together the related. Any business which goals with those of all the interests of all stakeholders neglects a stakeholder or stakeholders. And that is in starting with its consumers concentrates more on a the long term interest of all. and shareholders to the particular stakeholder runs associates, employees and the risk of an imbalance that the society which enables it would eventually lead to a to create value. backlash.

It is important to realize that Marico has been able to all stakeholders are closely achieve this balance that linked to each other. They all drives business proﬁts in make a difference

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