This presentation is prepared on marketing point of view
and are subject to India only.
All data are updated & Some of the pictures used in
presentation are edited as per requirements
FMCG Co. Websites
Business Maps of india.com
CII is a non-government, not-for-profit, industry-led
and industry-managed organization, playing a
proactive role in India's development process.
Founded in 1895, India's premier business association
has over 7100 members, from the private as well as
public sectors, including SSI,MSI and MNCs and an
indirect membership of over 90,000 enterprises from
around 257 national and regional sectoral industry
Indian FMCG Sector are in for salary hikes of over
10% this year(2014)
PepsiCo's largest beverage plant in India is coming up in Andhra
Pradesh at a cost of Rs. 1,230 crore, its single largest investment in
direct and indirect employment for 8,000 people
It will invest Rs. 33,000 crore ($5.5 billion) in India by 2020
Deepika Padukone becomes Brand
amassador of Coco Cola for Rs 6 Cr. Deal
(5th March 2014)
Emami signs Sonakshi Sinha as brand
ambassador for Boro Plus (March 20th )
Tang introduces bottle pack for summer
Mortein launches awareness drive
“U & ME AGAINST DENGUE”
Widely-popular fast-food chain McDonald announced
its decision to launch its international coffee format
McCafe in India
Jubilant Food Works to invest Rs 250cr in 2014.
Cadbury has developed a new heat-tolerant chocolate
which is capable of withstanding temperatures of up to
40 degree Celsius
Parle Agro’s Café Cuba carbonated coffee to
Glaxo Smithkline pays 1 billion USD to
increase its stake in Indian Subsidiary
(March 10th 2014)
Fast Moving Consumer Goods (FMCG) goods, popularly named as
consumer packaged goods.
Goods are purchased by the consumers repeatedly on daily, weekly & on
The price of such products per unit is low.
The consumption of such products is very high , Hence sold at large
FMCG Brands like HUL, ITC, Marico, Dabur etc..
FOOD & BEVERAGES
Health beverages, cereals, bakery
products, snacks, chocolates, ice
cream, tea/coffee/soft drinks,
processed fruits and vegetables,
dairy products, ,branded flour .etc…
Oral care, hair & skin care,
paper products etc…
HOUSE HOLD CARE
Fabric wash, Household
INDUSTRY AT A GLANCE
FMCG sector is the fourth largest sector in the economy with a total market
size of US $13.1 billion Rs 79,000 Crores
FMCG sector has grown at an average of 11% a year; in the last five years.
& in last 10 years the industries size has tripled.
Expected to reach 33.4 billon USD.
FMCG’s GDP contribution rises by 24%, & FMCG sector represents nearly
2.5% of countries GDP.
Cumulative FDI from April 2000 to 2013 April in Food Processing was
Rs 9,000 cr. & soaps,cosmetics-3,115.5cr.
Food products are the leading segment, accounting for
43% of the overall market, nearly 21 per cent of the
Food & personal care products make up two third of the
Ready to drink TEA & COFFEE expected to grow rapidly in
next 4 years.
Out of every 10,00,000 new jobs, 16% is created in FMCG.
Indian FMCG Market segment
Baby Care 2%
Fabric Care 12%
Food Products 43%
Hair Care 8%
OTC Products 4%
Personal Care 22%
Source : PDF Doc.
The urban FMCG market in India has been growing at a fairly steady and
healthy rate over the years.
The growth in rural markets has been more fast-paced.
Companies are now focusing on the rural market segment which is
contributing more than 35 per cent to the total FMCG market
More than 80 per cent of FMCG products have posted faster growth in
rural markets as compared to urban ones in the past.
Notable high growth items include snacks, refined edible oil, healthcare
products, Iodised salt etc..
Hairoils, Soaps, toothpastes, Jams and shampoos have
significantly high penetration in both urban and rural markets
Instant noodles, floor cleaners and hair dyes are picking up in
the rural areas due to increased awareness
More than 200 million people expected to shift to processed &
Highly exported items:
TEA & Coffee
Processed food, frozen ,dehydrated foods, Instant food, Ready to eat food,
Preserved vegetables & Sea food, Mangopulp, Poultry & meat products,
India also imports Foreign personal care products,
Packaged Food, Health Care Products.
Exports & Imports
Using INDIA as a brand
Small size packet strategy
Aggressive campaigns & Promotional strategies
'Maine Desh Ka Namak Khaya Hai'
State & territory distributors
Urban , Semi urban & Rural Stockists/Wholesalers
Organized and Unorganized market
(ITC’s Std. Distribution Channel)
Some Mergers , Acquisitions, J.V’s
Rin & Surf excel bar Strategy
HUL made a unique marketing step in 2006.
Rin Supreme became Surf Excel Bar..
FMCG Contribution to Indian Economy
Approximately 12-13 million retail stores in India, out of which 9
million are FMCG kirana stores. So the sector is responsible for
the livelihood of almost 13 million people
30% revenue of the sector goes into both direct and indirect
taxes. estimated size of $25 billion (Rs. 1,52,500 crores)
FMCG firms have also undertaken some specific projects
( P&G, ITC ,TATA, Wipro etc..)
Agriculture - Its intake of agricultural output as raw material is
estimated to US$ 2.2 billion(Rs. 13,640crores).
logistics market for the FMCG sector in India has been growing and is
estimated to be US$ 146 million (Rs. 950 crores)
Low operational costs.
Presence of established distribution networks in both urban and rural areas.
Presence of well-known brands in FMCG sector.
Favourable governmental Policy:
Indian Government has passed the policies aimed at lifting of the
quantitative restrictions, reducing excise duties, 100 per cent export
oriented units can be set up by government approval etc..
Foreign Direct Investment (FDI):
Automatic investment approval up to 100%foreign equity is allowed
for most of the food processing sector, FDI in organized retail: India
currently allows 100% FDI in Cash & Carry segment.
Low export levels
The fake products are affecting the sales of leading brands by
almost 20-30 per cent i.e 15% of its revenue
Untapped rural market, changing life style.
Rising income levels, i.e. increase in
purchasing power of consumers.
Large domestic market with more population of median
High consumer goods spending.
India is the largest milk producer in the world, yet only
around 15 per cent of the milk is processed,hence has large
long-term growth potential.
Only about 10-12 per cent of output is processed and
consumed in packaged form, thus highlighting the huge
Removal of import restrictions resulting in
replacing of domestic brands
Tax and regulatory structure
Rural demand is cyclical in nature and also
depends upon monsoon.
To name a few…
(Brand Ambassadors in FMCG)
(PESIT, Bangalore )
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