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MARICO LIMITED Joint Global Coordinators and Joint Bookrunners

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MARICO LIMITED Joint Global Coordinators and Joint Bookrunners MARICO LIMITED (Incorporated in the Republic of India with limited liability under the Companies Act, 1956) Marico Limited (the “Company”) is issuing 2,900,000 Equity Shares of face value Rs.10 each at a price of Rs. 522 per Equity Share, including a premium of Rs. 512 per Equity Share, aggregating Rs. 1,513.8 million of proceeds to the Company. ISSUE IN RELIANCE UPON CHAPTER XIII-A OF THE SEBI GUIDELINES THIS OFFERING AND THE DISTRIBUTION OF THIS PLACEMENT DOCUMENT IS BEING DONE IN RELIANCE UPON CHAPTER XIII-A OF THE SEBI (DISCLOSURE AND INVESTOR PROTECTION) GUIDELINES, 2000, AS AMENDED (THE “SEBI GUIDELINES”). THIS PLACEMENT DOCUMENT IS PERSONAL TO EACH PROSPECTIVE INVESTOR, AND DOES NOT CONSTITUTE AN OFFER OR INVITATION OR SOLICITATION OF AN OFFER TO THE PUBLIC OR TO ANY OTHER PERSON OR CLASS OF INVESTORS. Invitations, offers and sales of Equity Shares shall only be made pursuant to the Placement Document, Confirmation of Allocation Note and the Application Form. For further details see “Issue Procedure”. The distribution of this Placement Document or the disclosure of its contents without our prior consent to any person, other than Qualified Institutional Buyers (as defined in the SEBI Guidelines) and persons retained by Qualified Institutional Buyers to advise them with respect to their purchase of Equity Shares, is unauthorized and prohibited. Each prospective investor, by accepting delivery of this Placement Document agrees to observe the foregoing restrictions, and to make no copies of this Placement Document or any documents referred to in this Placement Document. This Placement Document has not been and will not be registered as a prospectus with the Registrar of Companies in India, and will not be circulated or distributed to the public in India. Investments in equity and equity-related securities involve a degree of risk and prospective investors should not invest any funds in this Issue unless they are prepared to take the risk of losing all or part of their investment. Investors are advised to read the risk factors carefully before making an investment decision in respect of this Issue. Each prospective investor is advised to consult its advisers about the particular consequences to it of an investment in the Equity Shares to be issued pursuant to the Placement Document. The information on the Company’s website or any website directly or indirectly linked to such websites does not form part of this Placement Document and prospective investors should not rely on such information. Applications shall be made for the listing of the Equity Shares on the Bombay Stock Exchange Limited (the “BSE”) and the National Stock Exchange of India Limited (the “NSE” and, together with the BSE, the “Stock Exchanges”). The Stock Exchanges assume no responsibility for the accuracy of any statements made, opinions expressed or reports contained herein. Admission of the Equity Shares to trading on the Stock Exchanges should not be taken as an indication of the merits of the Company or the Equity Shares. YOU MAY NOT AND ARE NOT AUTHORIZED TO (1) DELIVER THE PLACEMENT DOCUMENT TO ANY OTHER PERSON OR (2) REPRODUCE SUCH PLACEMENT DOCUMENT IN ANY MANNER WHATSOEVER. ANY DISTRIBUTION OR REPRODUCTION OF THIS DOCUMENT IN WHOLE OR IN PART IS UNAUTHORIZED. FAILURE TO COMPLY WITH THIS DIRECTIVE MAY RESULT IN A VIOLATION OF THE SEBI GUIDELINES OR OTHER APPLICABLE LAWS OF INDIA AND OTHER JURISDICTIONS. A copy of the Preliminary Placement Document has been delivered to the Stock Exchanges. A copy of the Placement Document will be filed with the Stock Exchanges. A copy of the Placement Document will also be delivered to the Securities and Exchange Board of India (the “SEBI”) for record purposes. THIS PLACEMENT DOCUMENT HAS BEEN PREPARED BY THE COMPANY FOR PROVIDING INFORMATION IN CONNECTION WITH THE PROPOSED ISSUE OF THE EQUITY SHARES DESCRIBED IN THIS PLACEMENT DOCUMENT. The Equity Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the ‘‘Securities Act’’) and, subject to certain exceptions, may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold (a) in the United States only to persons reasonably believed to be qualified institutional buyers (as defined in Rule 144A under the Securities Act) pursuant to Section 4(2) of the Securities Act and (b) outside the United States in reliance on Regulation S. See “Selling Restrictions”. This Placement Document is dated December 2, 2006. Joint Global Coordinators and Joint Bookrunners (arranged in alphabetical order only) TABLE OF CONTENTS PRESENTATION OF FINANCIAL INFORMATION AND USE OF MARKET DATA.............................4 INDUSTRY AND MARKET DATA .....................................................................................................................5 FORWARD-LOOKING STATEMENTS.............................................................................................................6 ENFORCEMENT OF CIVIL LIABILITIES.......................................................................................................7 DEFINITIONS AND ABBREVIATIONS ............................................................................................................8 SUMMARY OF BUSINESS .................................................................................................................................12 RECENT DEVELOPMENTS ..............................................................................................................................13 SUMMARY OF THE ISSUE................................................................................................................................14 RISK FACTORS....................................................................................................................................................15 MARKET PRICE INFORMATION...................................................................................................................26 EXCHANGE RATES ............................................................................................................................................29 USE OF PROCEEDS.............................................................................................................................................30 CAPITALIZATION ..............................................................................................................................................31 DIVIDEND POLICY.............................................................................................................................................33 OUR SELECTED HISTORICAL FINANCIAL INFORMATION ................................................................34 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS .............................................................................................................................37 INDUSTRY.............................................................................................................................................................56 BUSINESS...............................................................................................................................................................61 REGULATIONS AND POLICIES......................................................................................................................79 BOARD OF DIRECTORS AND SENIOR MANAGEMENT..........................................................................84 ORGANISATIONAL STRUCTURE AND PRINCIPAL SHAREHOLDERS..............................................92 ISSUE PROCEDURE............................................................................................................................................94 SELLING RESTRICTIONS ..............................................................................................................................101 INDIAN SECURITIES MARKET ....................................................................................................................105 EXCHANGE CONTROLS.................................................................................................................................111 DESCRIPTION OF THE SHARES ..................................................................................................................112 TAXATION ..........................................................................................................................................................117 LEGAL PROCEEDINGS ...................................................................................................................................123 INDEPENDENT ACCOUNTANTS ..................................................................................................................125 GENERAL INFORMATION.............................................................................................................................126 INDEX TO FINANCIAL STATEMENTS .......................................................................................................127 (i) NOTICE TO INVESTORS We accept responsibility for the information contained in this Placement Document and to our best knowledge and belief, having made all reasonable enquiries, we confirm that this Placement Document contains all information
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