Business Today Egypt - February 2009 - Indian Summer

The Cover Story of this months Business Today Egypt
was Indian Summer.

Brajesh was interviewed for this feature and quoted as follows:

Looking Beyond IT

Egypt seemed the most ideal location when India was looking for a manufacturing base in Africa for its hair care products in 2006.

“I call it the center of the world,” says Brajesh Bajpai, Marico’s Middle East and North Africa head. “In Africa [and the Middle East] and [with] easy access to southern Europe; which country has such great advantage?” he asks.

In addition to the excellent location, the low cost of manpower, the lower cost of operating a factory including power and fuel and the size of the domestic market, the Egyptian government’s support toward foreign investment was very encouraging.

“GAFI [the General Authority for Free Zones and Investments] was extremely helpful right from acquiring the land to getting all the required permissions and facilities at the factory place. In fact, I would define the response of government as best in world category, with a great customer oriented approach on all issues,” reveals Bajpai.

Soon after Marico acquired two of Egypt’s leading hair care brands, Haircode and Fiancée, its market share rose to 60%. Marico continued to invest not only in the acquisitions, but also in manufacturing facilities, advertising brands, training people and setting up processes along with vendors.

Before the end of 2008, Marico had announced the opening of its third manufacturing plant in Sadat City. At full capacity, it is expected to churn out 10 million liters of cream and oil every year, enough to grease more than just the domestic market.

Marico is now looking at North Africa, southern Europe and Gulf markets hoping to exploit Egypt’s preferential trade agreements, namely with COMESA, EU and Greater Arab Free Trade Area (GAFTA) countries, respectively. The continued lowering of import duties from Europe will help Marico source raw materials at more competitive prices. In addition, all members of GAFTA will be able to take advantage of the reduction in import duties.

Marico’s operations in Egypt employ about 500 people and are estimated to benefit more than 1,000 Egyptians indirectly in terms of job opportunities.

You can read the entire article here.

Brajesh Bajpai - Quoted in Outlook Business, 29 Nov 2008

From Outlook Business
29 November 2008

Gateway to the world
It’s long been home to many wonders of the world. Now, Egypt is setting itself up as an export base for companies seeking access to that part of the world and beyond
Sharada Balasubramanian

Trade push

Marico’s experience typifies what Egypt has to offer today. Egypt was conceived by Marico as a move into a new market; in time, it became more than that. In 2006, Marico acquired the manufacturing plants and brand rights to two leading domestic hair products—a hair cream (Fiancee) and a hair gel (Hair Code). Marico, which has a 62% share of the hairstyling market in Egypt, earned 3.5% of its total 2007-08 revenues from Egypt. It’s now looking to leverage Egypt as a gateway to the world.

Marico recently completed building its third plant in Egypt, to make about 400-500 tonnes of Parachute coconut oil per month. "The new plant will be the sourcing hub for neighbouring countries like Sudan, Syria, Iran, Liberia, and Saudi Arabia," says Brajesh Bajpai, Regional Head, Middle East and North Africa (MENA), Marico.

What’s got Bajpai excited is the cut in corporate tax rates from 42% to 20% in Egypt and the minimal or zero customs duties levied on Marico’s exports from Egypt because of the trade pacts. "We will now be more competitive," says Bajpai. For Marico, the operative trade pact will be the Greater Arab Free Trade Area (GAFTA), which came into existence on January 1, 2005. GAFTA is to the Arab countries (17 members) what Asean is to Asia. In the last four years, GAFTA has brought down the customs duties levied by member countries by 40%.

Read the entire article on Outlook Business

Marico's Third manufacturing Facility in Egypt

XLRI Prospectus 2009

This is a page from this years XLRI prospectus mentioning a few notable alumni.

View the online copy of the Prospectus

Organisation Communication and Values Workshop in Egypt

The Global Manager

From The Business Today
June 25th

...Brajesh Bajpai, 37, an alumnus of XLRI's Class of 1996, is the Regional Head, Middle East and North Africa at Mumbai-based FMCG major Marico, which he joined in 2006 as Country Head for Egypt, after spending over a decade with PepsiCo in India across functions as diverse as Sales, Marketing, Operations and Franchise & Brand Management. He has played a key role in the establishment and consolidation of Marico's operations in West Asia and North Africa...

...Bajpai and Katikala Natrajan represent a growing breed of global managers who have become a necessity in the rapidly globalising world of business. What’s apparent from the brief biographies of the three is that they have the talent and training to efficiently manage businesses in alien and cross-cultural settings....

...Taking a somewhat radical view, Bajpai says: “It is simply not possible to create a global manager. However, one important trait of a global manager is the ability to handle ambiguity and change. The person should have an open approach to life and situations.”...

Audacious Brajesh ? - Business Today, India - May 2008

From Business Today

Walking the talk

T.V. Mahalingam

May 1, 2008

Regular walkers at the windswept Bandra promenade in Mumbai are likely to spot a professorial-looking man walking briskly past entwined couples and sleepy constables, barely throwing them a glance. Only an avid follower of business magazines or the burgeoning business news channels would recognise 57-year old Harsh Mariwala, Chairman, Marico, one of India’s fastest growing marketers of fast moving consumer goods (FMCGs).

Harsh Mariwala

Mariwala follows a rigorous physical regimen that sees him hit the treadmill, take long walks on the sea face, and play golf whenever he can find the time. It’s, therefore, no surprise that Mariwala is tough to keep up with when he is walking.But then, so is it with the company that he heads. As the financial results for 2007-08, which were declared last fortnight, reveal, Marico has clocked group revenues of Rs 1,907 crore—up 22 per cent over the previous financial year.

Since 2003-04, revenues have grown at a compounded annual rate of 21 per cent, something few FMCG marketers can match. Net profits are up 30 per cent for the same period. To cap an impressive run, look at it this way: The group has experienced 30 consecutive quarters of revenue growth and 34 quarters of profit growth.

But even that’s not enough for Mariwala. “We want to be the fastest-growing FMCG company. And we want to do that consistently. There is no point in growing one year at 30-40 per cent and the next year at zero,” says Mariwala.

To get that consistent high growth, Marico has a hand of four good cards. The first is a portfolio of established businesses and brands (businesses like hair oils and edible oils, and brands like Parachute and Saffola); the second card is the hunger to create new business models, the Kaya Skin Clinics being just one example of this; third, the international operations have grown from strength to strength. . . . .

.

. . . Spreading wings

Another significant aspect of the Marico story has been its rapidly growing international business and its string of international acquisitions. Marico Chief for HR & Strategy Milind Sarwate narrates an interesting story about the company’s way of doing business. Even as Marico was negotiating its first acquisition in Egypt for the haircare brand Fiancée from the Egypt based Ready group, the company appointed a country head.

“We had the audacity to appoint the country head for Egypt even as the negotiations were going on. The guy (Brajesh Bajpai from Frito Lay) had the audacity to join as Country Head with nothing on the ground, when acquisition papers were yet to be signed,” recalls Sarwate, who has worked on most of the company’s acquisitions.

It’s perhaps this hit-the ground-running attitude of the company that has seen its international business grow rapidly over the past couple of years. Last year, international operations accounted for nearly 16 per cent of the group turnover, clocking over Rs 300 crore. International revenues grew by an astounding 59 per cent. In 2006-07, revenues from international operations were at Rs 117 crore, or about 10 per cent of the group’s revenues.

With twin acquisitions in Egypt and a recent acquisition in South Africa, Marico is well set to tap the booming markets for beauty care products in Africa and West Asia. Marico has also been very astute in picking its acquisition targets. . . .

. . . The company’s Egyptian brands Fiancée and HairCode added nearly Rs 88 crore to the turnover. So, what does the future hold for Marico? “We don’t want one growth engine. We want all the product categories to grow. All products have to deliver at least double-digit growth,” says Mariwala. Keeping up with him will then get even tougher.

Read the entire article at Business Today

XLRI Alumnus Achievers 2007-2008

From http://xlalumni.blogspot.com

Brajesh Bajpai (96BMD) moved into an enlarged role as the Head of Middle East and North Africa Region of Marico’s International Business.

Entire list can be viewed here

XLRI - International Student Exchange Program Brochure

Mentioned among the Alumni of Repute in the International Student Exchange Program Brochure of XLRI.

Percy Siganporia, MD, TATA Tetley
George Zacharias, MD(India), Yahoo!
Surajit Shome, MD(India), Lehman Brothers
Milind Chalisgaonkar, CEO, Bharti AXA General Insurance India
Rajiv Kaul, Partner, Actis (London)
Brajesh Bajpai, Country Head(Egypt), Marico
Ajay MK, Head HR(Malaysia & Singapore), Colgate Palmolive
Bijou Kurien, CEO, Reliance Retail’s Lifestyle Business
Vineet Nayyar, President, HCL Technologies
Dr Hayagreeva Rao, Professor, GSB, Stanford University
Avijit Ghosh, Dean, College of Business, University of Illinois at Urbana
Champaign
Prakash Puram, Nominee, President’s Export Council, USA
Gerard Tellis, Jerry & Nancy Neely Endowed Professor in American Enterprise
Marshall School of Business, University of Southern California
Chitra Talwar, VP (Global Sales) Pepsico International

View the Brochure, here

Business India - September 2007

Economic Times - Face Off - July 2007

DNA - June 2007

Hindu Business Line - June 2007

Recently, consumer products major Marico Ltd has captured 50 per cent market share in the Egyptian hair care market by acquiring two Egyptian brands. Mr Brajesh Bajpai, Marico's Country Head for Egypt, said that the country is a sourcing hub for North African region, Europe, Syria and Iraq. It offers advantages in terms of labour, manufacturing cost and lower custom duty. Indian companies in Egypt can leverage economical power tariffs, subsidised natural gas and motor fuel to their own advantage, he said.

Also on the Indian Embassy in Cairo site

Egypt wins country of the Year Award from Marico

XLRI Alumnus Achievers 2006-2007

From http://xlalumni.blogspot.com/

Brajesh Bajpai (96BMD) moved from Pepsi to take over as theCountry Manager, Marico - Egypt.

Entire list can be viewed here

Business Today Egypt - Feb 2007

Read the Entire Article in Business Today Egypt

Read the Entire Article in Business Today Egypt

New Job - Covered in Business Today Egypt

Marico Eyes More Buys in Egypt

After acquiring the Egyptian haircare brand Fiancée in September, India-based Marico Industries is hungry for more. The company was scanning the Egyptian market for more acquisitions in October; this time Marico is looking closely at the beauty and wellness segments. Marico may also examine rationalizing the Fiancée portfolio, company officials said last month.

A source close to Marico said the group was already in talks for other brand acquisitions. Marico, like others in its industry, prefers to purchase brands rather than entire companies.

Also last month, Marico appointed Brajesh Bajpai, a former executive of Frito-Lay India, as the Cairo-based country director of Marico Egypt. Marico might also make Egypt the hub for its expansion into other African markets.

From Business Today Egypt

New Job - Covered in Business Standard

Brajesh Bajpai (BMD 96) to Head Marico Acquisition in Egypt

From the: Business Standard

Marico eyes more buys in Egypt
Priyanka Sangani / Mumbai October 03, 2006
From Business Standard

After acquiring the Egyptian hair care brand Fiancee last month, Mumbai-based Marico Industries is hungry for more. The company was scanning the Egyptian market for more acquisitions, Marico CFO Milind Sarwate told Business Standard.

This time Marico is looking closely at the beauty and wellness segments. Marico may also examine rationalising the Fiancee portfolio.

A source close to the development said Marico was already in talks for other international acquisitions. But like all Marico acquisitions, the company will pick up brands and not entire companies.

Sarwate said the company would continue with its strategy of acquiring brands as companies often came with a lot of unwanted baggage like litigation or unwanted assets.

To get a closer grip on its Egyptian operations, Marico recently appointed Brajesh Bajpai, a former executive of Frito Lay India, as its country head for the African nation. Marico might also make Egypt the hub for its expansion into other African markets.

The company is also looking at other African countries like South Africa for identifying potential acquisition targets, apart from South-East Asian countries like Vietnam, Indonesia and Malaysia.

Sarwate said, “Any country where it will be difficult for Marico to export its products because of import duties will be a potential acquisition market.”

Marico may also consider manufacturing its Indian brands in Egypt in order to reach other markets in Africa.

At present, the company’s immediate task is to integrate Fiancee with Marico. This will be followed by a rationalisation of the Fiancee portfolio. “Apart from hair gels and creams, the brand also has a presence in skin care and shampoos,” said Sarwate.

With Marico’s stated focus being pre and post-shampoo markets, and not shampoos, it is likely that the Fiancee shampoos might be the first casualty in the rationalisation process.

Fiancee is expected to do sales of Rs 50-55 crore in the next 12 months and its performance will show on Marico’s balance sheet from the third quarter of this financial year.

Marico executives claim Fiancee has a market share of more than 20 per cent in certain parts of Egypt, where the hair care market is valued at Rs 175 crore.

Closer home too, Sarwate said they would continue to evaluate their strategy on brands which were on maintenance mode like the food brands, Sweekar and SIL.

However, in India, Marico will continue adding to its portfolio, though not through acquisitions in the near future. The national roll-out of products like leave-on conditioners and Parachute Therapie will happen over the next few months.

Frito-Lay gets Gujarat specific, launches new Kurkure flavour

From : Business Standard



Frito-Lay gets Gujarat specific, launches new Kurkure flavour
Our Regional Bureau / Mumbai/ Ahmedabad March 09, 2006

If you thought the huge appetite of Gujarat was confined to the plethora of restaurants and roadside larries, here is something that might defy it. Last year alone, the state consumed Kurkure worth at least Rs 2 crore. To continue the trend, FritoLay India launched Kurkure Solid Masti’s ‘Masala Twist’ — a Gujarat specific variant, to target the state market. Gujarat accounts for more than 60 per cent of Kurkure sales in the country.


The company on Tuesday launched its new tea time snack Kurkure Solid Masti, which will target elderly people.

"Gujarat is our major market. The state accounts for more than 60 per cent of our Kurkure sales and therefore, we are coming up with a twisty Masala twist. This is a sign of our commitment to the market," Brajesh Bajpai, vice-president marketing (west) told Business Standard.

The company is also coming up with outdoor promotion and marketing campaigns in all the major cities of Gujarat. Further, it will conduct various activities in bid to strengthen its market presence. Bajpai said the company controls about 50 per cent market share in the country's Rs 2,000 crore snacks market. He added that the company has decided to launch Kurkure Solid Masti, after market researched showed customer wanted heavier snacks during tea time.

"Our research showed that 40 per cent of snacks are taken during tea time. Consumers wanted more heavier snacks that could sustain them till dinner, hence we decided to come up with this products. We are especially targeting elderly people as this product is meant for household consumption, " he added.

The company plans to add-up more 10-15 per cent in sale of Kurkure’s volume. Company’s brand ambassador Juhi Chawla will be marketing this product too.

Growing up... on Thums Up and Pepsi's Lehar soda?

From Hindu Business Line

Growing up... on Thums Up and Pepsi's Lehar soda?

Ratna Bhushan

NEW DELHI, May 22

SOFT drinks major Pepsi Foods is taking on arch rival Coca-Cola India's Thums Up taste challenge head on. The in-your-face `Have You grown up to Thums Up?' film now has an equally aggressive retort in the form of Lehar, Pepsi Foods' brand of soda.

While the currently-on-air Thums Up film is about attempting to make Thums Up taste like the rival cola (with blurred voice-over), the Lehar soda film depicts an attempt to convert the soda into Grow Up tonic (an obvious reference to Thums Up).

The Lehar soda commercial does not stop at spoofing with look-alikes of Salman Khan and Sushmita Sen -- Thums Up's celebrity endorsers. The commercial also has a voice over that announces `toofani anda?', in a situation where crow droppings fall into the `tonic' glass. (`Toofani thanda' has been a distinct Thums Up sign off for several decades.)

The message that the new Lehar soda commercial attempts to convey, asserts Mr Brajesh Bajpai, Brand Manager (Lehar Soda), Pepsi Foods, is that Lehar remains the strongest soda in the market. "The idea of the commercial is to build on the platform of strength. It fits with the brand,'' he said. Hence the sign off -- `Lehar soda, strong soda', which incidentally is the same as last year.

Last year too, Pepsi Foods had taken on the `Grow up to Thums Up challenge' theme campaign with Lehar soda, also featuring a Salman look-alike. That was the first time Pepsi had decided to tap the electronic media for its low-profile Lehar soda brand.

Last year's Thums Up blind test challenge television campaign had resulted in Pepsi dragging Coca-Cola India to court for copyright infringement of its `dil maange more' adline. The Lehar soda film, created by agency Hindustan Thompson Associates (HTA), is a 35-seconder and broke on mainline television channels a couple of days back.

According to industry estimates, the organised soda market is worth approximately Rs 200-crore, and Lehar soda is the market leader, followed by Coca-Cola's Kinley soda brand. "Lehar soda is the fastest growing soda brand and it grew by over 15 per cent last year. We expect to generate the same growth this year as well,'' Mr Bajpai said.

Lehar soda is available in 300 ml glass bottles priced between Rs 4-7 depending on the markets the brand is present in, besides 500 ml, 1.5 litre and 2 litre PET bottles.

So will there be a sequel to the Lehar soda ad? "We will take a call in 15 days' time,'' Mr Bajpai said.