MAJOR PLAYERSCompany Sales as on 31 March Product segment 2010 (US$ mn)Britannia Industries Ltd 785.5 Tiger, Good Day, Marie GoldColgate Palmolive India Ltd 408.8 Colgate, Palmolive, Axion, Dish WashDabur India Ltd 706.5 Dabur Amla, Vatika, Fem, Dabur Gulabri, Dabur Chyawanprash, HajmolaGlaxoSmithKline Consumer 421.9 Horlicks, Boost, Maltova, Eno, IodexHealthcare India LtdGodrej Consumer Products Ltd 425.2 Ezee, Godrej Dish Wash Cinthol,(GCPL) Color Soft FairGlow, No 1, KeshKala.Gujarat Cooperative Milk Marketing 1,700 AmulFederation (AMUL)Hindustan Unilever Ltd. 3,700.8 Lakme, Lifebuoy, Lux, Pepsodent, Sunsilk, Ponds, Rexona, Vaseline, Fair and Lovely, Dove, Pears, Active Wheel, Rin, Surf Excel.Indian Tobacco Co. Ltd. 758.7 Aashirvaad, Sunfeast, Fiama Di
MARKET SHARE OF MAJOR PLAYERSCOMPANY Market share MARKET SHAREHindustan uniliver 36.4%ltd. HUL 36.4%Indian tobacco 30% ITC 30%companyNestle 8.2% Nestle 8.2% BritaniaBritania 6% 6.0% Dabur 4.3%Dabur 4.3% Others 15.1%Others 15.1%
MAJOR CHALLENGES TO THE INDUSTRY Inadequate distribution network. High competition between large and small players. Taylor made products with attractive packaging. Collaboration and partnership do work !!! Reach, role, of distribution and pricing. Low price high quality. Competent front end sales force.
GLOBAL PLAYER IN INDIA Hindustan Unilever Limited Procter & Gamble Hygiene & Health Care Limited (P&G) Godrej Consumer Products Limited (Godrej) Dabur India Limited (Dabur) Colgate-Palmolive (India) Limited Nestle India Limited
MARKET SEGMENTS Food products is the largest consumption category in India, accounting for nearly 21 per cent of the country‘s GDP. Some of the leading players in this segment include Britannia Industries Ltd, Dabur India Ltd, GlaxoSmithKline Consumer Healthcare India Ltd and Gujarat Cooperative Milk Marketing Federation (GCMMF).
MARKET SEGMENT Indian FMCG market segment Baby Care 2% Fabric Care 12% Food Products 43% Hair Care 8% Household 4% OTC Products 4% Others 5% Personal Care 22%
ADVANTAGE TO INDIA LARGE AND GROWING YOUTH POPULATION EMERGENCE OF INFRASTRUCTURE ORGANISEDRETAIL DEVELOPMENT BUSINESS Advantage India SIGNIFICANT INCREASE IN GROWING CONSUMPTION URBANISATION LEVELS INCREASING DISPOSABLE INCOME
SWOT ANALYSIS OF FMCG INDUSTRYSTRENGTHS Low operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector
WEAKNESSES Lower scope of investing in technology and achieving economies of scale, especially in small sectors. Low exports levels "Me-tooʺ products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.
OPPORTUNITIES Untapped rural market Rising income levels, i.e. increase in purchasing power of consumers Large domestic market- a population of over one billion. Export potential High consumer goods spending
THREATS Removal of import restrictions resulting in replacing of domestic brands. Slowdown in rural demand Tax and regulatory structure
TRENDS & PLAYERS The Structure Critical operating rules in Indian FMCG sector Majority of the product classes require very low investment in fixed assets Existence of contract manufacturing Marketing assumes a significant place in the brand building process Providing good price points is the key to success
YOGESH CHANDER DEVESHWARBorn on 4 Feb,1947Chairman of ITC LimitedEducationBachelor of Technology Degree in Mechanical Engineeringfrom the Indian Institute of Technology,Delhi in 1968AMP Diploma from Harvard Business School, United StatesCarrerHonours & Awards
PAUL BULCKE Born on 1954 CEO of Nestle on 20th Sep,2007 Education graduated as a commercial engineer at the Katholieke Universiteit Leuven and is an alumnus of the Vlerick Leuven Gent Management School. He also, attended the program for Executive Development at the Swiss leading business school International Institute for Management Development, IMD in Lausanne.
ROBERT A MCDONALD Born on 20th June,1953 President & CEO of Procter & Gamble Early Life & Carrer Awards & Positions In 2007, McDonald received the inaugural Leadership Excellence Award from the U.S. Naval Academy and Harvard Business Review