According to sources, the company achieved a volumes growth of about nine per cent in its flagship brand Parachute hair oil during the period.

The first quarter period, in which Marico Industries posted sales of Rs 109 crore and a net profit of Rs 8 crore, witnessed a fall in per unit realisations on Parachute following a reduction in retail prices. The price of Parachute coconut oil dropped 16-18 per cent during this period.

As against this, the brand witnessed a decline in volumes by three per cent in the second half of the 1997 fiscal, when raw material (copra) prices shot up, said analysts.With coconut oil prices dropping during the first quarter, Marico's operating margins improved in this segment. However, safflower witnessed an unprecedentedshortage because of crop failure. The company resorted to imports to ease the supply situation in Saffola.

According to Inquire Indian Equity Research equity analyst Ayaz Motiwala, "the six per cent volumes growth in refined edible oils is impressive as this has been achieved despite a steep rise in input costs necessitating retail price hikes."

The price markups in edible oils were to the tune of 40 per cent during the period, said analysts. The drop in growth in Saffola was offset by satisfactory growth in Sweekar, the second edible oil brand from Marico's stable.

Among other focus categories of Marico -- SIL registered a 16 per cent growth in sales value, while Hair & Care and Revive posted volumes growth of 17 per cent and 16 per cent respectively during the period.

The market share of Parachute increased to 54.2 per cent as on May 1998 from 53.6 per cent in March 1998. In the consumer packed refined oil market, the combined market share of Saffola and Sweekar increased to 16.4 per cent from 15.7per cent in March. The market share of Hair & Care in the non-sticky hair oils market increased to 29.2 per cent in May from 27.2 per cent.While Parachute contributes 53 per cent to the company's sales, Saffola and Sweekar contribute 18 per cent and 16 per cent to the sales. The other three brands, Hair & Care, Revive and SIL, contribute around 3 per cent to the company's sales.