From Parachute to Saffola, Marico's Harsh Mariwala on building and branding India's biggest consumer products

First Principles

Sometime in the early 1970s a young Harsh Mariwala joined Bombay Oil Industries, a company set up by his grandfather in 1948, just a year after India’s independence. The company would trade in spices, oils and chemicals.

Over the next two decades Harsh learnt the ropes of the family business. Till in 1991 - two decades after he had joined Bombay Oil - he left it to start his own company, Marico.

He had already seen the power of quality and brand in a category that was still almost entirely commoditized and unbranded. For instance, the huge 15 liter tin cans of Parachute coconut oil Bombay Oil sold to shopkeepers were resold in smaller quantities at much higher prices. Harsh rightly wondered, why should someone else capture the margin and premium for my product?

The company that Harsh founded - Marico - had two powerful brands at its core - Parachute Coconut Oil and Saffola cooking oil. That is true even today, 33 years later. Nearly 1 in 3 Indians use Parachute oil, our research tells us.

Of course, a lot else has changed since then.

Marico, which went public just 5 years after being founded in 1991, today boasts a turnover of over 1.2 billion dollars.

And Harsh is 72, but still learning, exploring, experimenting and unable to take it easy.

Earlier this week, I had the chance to speak to Harsh about his entire (and might I add still evolving) professional journey!

It’s a long time, but Harsh talks about the day Marico was separated from Bombay Oil just like it was yesterday. He talked about how in 1991 they attracted talent by positioning themselves as the disruptive outsiders. Sample one of the headlines from Marico’s ads: 200 employees walk out of Bombay Oil.

Harsh had a lot of stories for me – from creating differentiation in consumer products even when the market is crowded, to how he fought back and won against the much larger Hindustan Unilever when it wanted to acquire Marico. And then he switched back to the present – and how he’s focussing all his learnings, experience, attention into cultivating innovation in India.

This is an episode packed with anecdotes and lessons – you’ll hear Harsh talking about a ‘right to win’ in the market, strategizing acquisitions, and making ‘a difference without expectations’ to the shareholders. All in the context of Harsh’s years at Marico, the Mariwala Health Initiative, Ascent foundation and Marico Innovation Foundation!

Let’s go!

This is episode 42 of First Principles–a weekly leadership podcast from The Ken.