Please use this identifier to cite or link to this item: https://repository.iimb.ac.in/handle/2074/10642
Title: Reassessing Marico’s forex hedging strategy: With specific Reference to effectiveness of Natural hedge in foreign currency transactions (India & Egypt); Marico Limited
Authors: Sriharsha, K V 
Keywords: Foreign currency;Risk management
Issue Date: 2012
Publisher: Indian Institute of Management Bangalore
Series/Report no.: PGP_SP_P12_127
Abstract: The project has considerable impact on Marico’s risk management strategy. The genesis & scope of the project covered many aspects. Marico had borrowed an ECB worth 54 million USD in February 2011 with principal repayments scheduled in FY 2016-2018. The repayment rate agreed upon was Libor + 210 Bps. The role was to assess if the ECB repayments formed a natural hedge against export receivables. Else, a separate hedging strategy was intended to be identified for both repayments & export receivables. In addition to this, several critical factors could be analysed. INR has already depreciated by over 20% compared to the loan draw-down rate raising questions on effectiveness of foreign denominated loans Vis-a-Vis a rupee loan or debentures. Identifying hedging strategies of other players in the FMCG industry, other capital intensive industries and providing recommendations for Marico was another important part of the project.
URI: http://repository.iimb.ac.in/handle/2074/10642
Appears in Collections:2012

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